Portugal’s Local Accommodation Association (ALEP) is warning that between 40,000 and 45,000 short-term rentals (Alojamento Local, or AL) could disappear by the summer of 2026 for failing to comply with new mandatory civil-liability insurance.
ALEP president Eduardo Miranda told Lusa news agency that 151 municipalities have already notified owners, with the latest wave of letters going out this November. “Those who haven’t complied must finish the process by the end of the year,” the ALEP boss said.
Once all remaining boroughs have issued their notices, the association expects the nationwide push to be completed by next summer. That would leave 85,000 to 90,000 units still operating, down from the roughly 126,000–127,000 currently on the books.
So far, 78,000 properties have been contacted since the registration process began in June. After the 10-day deadline expires, councils can start wiping non-compliant listings from the system.
Miranda says Lisbon will lead the first big purge, predicting around 7,000 cancellations out of the capital’s 18,600 registered ALs.
He also stressed that more than one-third of registrations will be scrapped simply for inactivity, arguing that many of the numbers used in public debate about AL inaccurate.
Speaking at the 4th Local Accommodation Congress in Óbidos, Miranda warned that municipalities must tailor their rules to local realities. “There are 1.8 million homes not used for housing. AL ratios need to reflect each territory’s specific conditions,” he said.
He pointed to the Algarve as a prime example, where roughly half of all homes are holiday properties, and where restricting AL too heavily could undermine tourism and the regional economy.
Mayors from the Oeste region echoed the need for growth, insisting there is still room for AL expansion. Miranda agreed, saying clear data on housing stock and active AL units is crucial before any limits are imposed.
