Update on Local Accommodation Legislation in Portugal – What Changed on November 1st?
Starting from November 1, 2024, Decree-Law No. 76/2024 will come into effect, updating the legislation on local accommodation (AL) in Portugal. These changes aim to simplify the process, return authority to municipalities, and balance the interests of property owners, condominium associations, and residents.
Main changes in AL legislation
1. Licenses are now transferable.
The previous regime considered licenses personal and non-transferable, except in cases of succession. With the new law, it is possible to transfer licenses between owners — a practice subject to municipal council approval.
2. Licenses become indefinite.
The automatic expiration after five years has been eliminated. Licenses will no longer expire unless a specific municipal regulation states otherwise.
3. End of mandatory condominium authorization
Prior approval from the condominium will no longer be required to license short-term rentals, unless the building's regulations, approved in an assembly with a qualified majority, stipulate otherwise.
4. Regulation returned to municipal councils
Each municipality with more than 1,000 short-term rentals will have one year to create local rules — defining containment areas or sustainable growth. Until then, national legislation applies.
5. New deadlines:
licensing and inspection Municipal councils have up to 60 days (90 in containment areas) to approve applications and conduct inspections. The owner may request a review of the decision if the application is denied.
6. Power to revoke due to disturbances
Condominiums can request the revocation of licenses if they prove serious disturbances to peace. The municipal council will assess the situation based on a new legal process.
How these changes benefit owners and investors
- Transferring licenses facilitates sales and real estate reorganization
- Elimination of automatic expiration creates long-term stability
- Simplified licensing process reduces bureaucracy and waiting time
- Local competence allows adapting rules to regional realities
- Possibility to appeal negative decisions provides legal guarantees
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