New Legislation for Local Accommodation in Portugal

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The local accommodation sector in Portugal continues to undergo significant regulatory changes. On October 23, 2024, publicado em Diário da República o Decreto-Lei n.º 76/2024

What has changed since November 1st

Powers of Municipalities

Municipalities will have more powers to regulate and supervise local accommodation (AL) in their territories. They will be able to adopt their own administrative regulations that define the procedures and means of action for AL activities. Additionally, municipalities can create containment and sustainable growth zones, adjusting AL activities to the specific characteristics of each territory.

Licenses and Cancellation

Local accommodation licenses will now be transferable, except in containment areas where municipal regulations may differ. 

Powers of Condominiums

The new regime approved by the Government removes the power of condominiums to close local accommodation (AL) units, returning that decision to the municipalities. Now, condominiums can only request the closure of an AL based on proven acts of disturbance, and the final decision will rest with the municipality. Additionally, AL owners will no longer need prior authorization from the condominium to start the activity in a building intended for housing.

Revoked Laws from the "Mais Habitação" Package

The Government has decided to revoke several measures from the previous executive’s “Mais Habitação” package. Among the revoked measures are the extraordinary contribution on AL properties and the fixing of the obsolescence coefficient. The coercive leasing, one of the most controversial measures, has also been revoked. These revocations aim to correct distortions and encourage investment in the real estate sector.

Want to know more about the law related to local accommodation in Portugal? Contact us directly at: (+351) 937 282 616

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