Decision-making power has been restored to municipal councils
Portugal’s short-term holiday rental sector – known in Portuguese as Alojamento Local (AL) – is celebrating a new decree-law which reverses some of the restrictions introduced under the previous Socialist government’s ‘Mais Habitação’ (More Housing) programme.
The Portuguese Association of Hotels, Restaurants, and Similar Establishments (AHRESP) has praised the government’s decision, which it says brings a more balanced and appropriate approach to AL.
One of the most impactful changes is the removal of mandatory licence renewals and restrictions on new registrations, restoring decision-making power to municipal councils. This shift is expected to help municipalities manage local short-term rental availability to better meet the demands of their communities.
The decree-law (no.76/2024) also does away with the automatic expiry of inactive licences and planned re-evaluations of licences in 2030, offering operators “increased legal certainty and business stability,” AHRESP points out, adding that short-term rental businesses can now invest and grow without the looming threat of sudden licence cancellations due to factors beyond their control.
Another significant change is that condominiums no longer have the “absolute power” to approve and cancel AL licences without any kind of justification. Additionally, the new law allows for the transfer of rental licences in the case of property sales, while the government has also clarified valid use cases and operational guidelines for short-term rentals.
AHRESP says it has always manifested its opposition to the “unjustified AL restrictions” and has “constructively worked together with political decision-makers to present fair and balanced solutions. That is why we are happy to see that our concerns – which are those of our members – have been acknowledged. We will continue to follow closely the implementation of these measures, collaborating actively with the government and municipalities,” the association adds.
The association also thanks its members who contributed to this milestone, emphasising that the new legislation will allow short-term lettings to continue playing a vital role in Portugal’s tourism economy and sustainable community development.
