Portugal Revises Local Accommodation Regulations: What Property Owners Need to Know
The Portuguese government has recently introduced significant changes to local accommodation (AL) regulations, marking a shift from the controversial policies implemented in 2023. These changes are expected to bring relief to property owners and operators within the AL sector, particularly in areas experiencing high demand, such as Lisbon and Porto.
Key Changes to AL Licensing
One of the most significant changes is the reversal of the non-transferability rule for AL licenses. Under the 2023 legislation, AL licenses were deemed non-transferable, even in cases of death, divorce, or inheritance. This policy was widely criticized by property owners and the broader AL sector, as it created uncertainties and complications for those looking to sell or transfer their properties.
The new decree, approved by the government and expected to be finalized soon, will allow AL licenses to be transferred along with the sale of the property. This change is seen as a direct response to the concerns raised by the AL sector and is part of the government’s broader efforts to correct what it considers “errors” made by the previous administration.
Decentralization of AL Regulations
In addition to making AL licenses transferable, the new regulations will also grant more autonomy to local municipalities. Municipalities will now have the authority to establish specific rules and regulations for AL operations in their respective areas, particularly in zones of high pressure where demand for short-term rentals is intense. This decentralization is intended to allow local governments to better manage the impact of AL on their communities, tailoring regulations to meet local needs and conditions.
Repeal of Punitive Measures
The government has also repealed several punitive measures that were introduced under the 2023 legislation. These include the extraordinary contribution on AL properties and adjustments to the property tax calculations, specifically the coefficient of obsolescence used for determining the Municipal Property Tax (IMI). The removal of these measures is expected to ease the financial burden on property owners and contribute to the overall stability of the AL market.
Implications for Property Owners
For property owners and investors in the AL sector, these changes represent a positive development, providing greater flexibility and security in managing their properties. The ability to transfer AL licenses with property sales will likely make investments in this sector more attractive, while the increased autonomy for municipalities may lead to more localized and effective regulation of short-term rentals.
Overall, the government’s revisions to AL regulations signal a more balanced approach to managing the sector, taking into account the needs of property owners, local communities, and the broader economy. As these changes are implemented, property owners are advised to stay informed about local regulations in their municipalities and to consider how the new rules may impact their operations.
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Disclaimer: The information provided in this article is for general informational purposes only and is not intended as legal, financial, or tax advice. For specific advice tailored to your situation, please consult with a professional advisor. Casa Costa Properties does not guarantee the accuracy or completeness of the information and will not be held responsible for any errors or omissions.
