Olá amigos! If you’ve been circling the Portuguese property market like a seagull over a beachside pastel de nata, wondering whether you can legally rent it out to tourists — bem-vindo. This one’s for you.
Let’s unpack what’s going on with Alojamento Local (AL) licenses, the shifting sands of regulation, and why knowing a guy who knows a guy (preferably one who knows zoning laws) might be your most valuable asset.
What Is AL (Alojamento Local), Anyway?
If you want to rent out your Portuguese property on Airbnb, Booking.com, or any of their online cousins, you’ll need an AL license — Portugal’s official stamp of approval for short-term rentals. It’s essentially the golden ticket that says, “Yes, you can legally host tourists here (and pay taxes like a proper grown-up).”
Types of AL include:
- Moradia – Whole home or villa
- Apartamento – Entire apartment
- Quartos – Rooms in your primary residence
The Current Situation (as of 2025)
Back in 2023, Portugal rolled out the Mais Habitação law, intended to improve long-term housing access. Great goal, messy execution — especially for short-term rental operators. Here’s what changed:
🚫 New AL Licenses Frozen in Certain Areas
- New licenses are currently suspended in high-density housing zones, including most of Lisbon, Porto, and coastal Algarve.
- The freeze is open-ended — no clear timeline for when or if it will be lifted.
💸 Annual Extraordinary Contribution (CEAL)
- Existing license holders now pay the CEAL tax, a sliding-scale annual fee that varies based on location and property type.
- Think of it as a “thanks for contributing to the housing crisis” charge, even if you’re just renting a studio with IKEA furniture and decent Wi-Fi.
🧾 5-Year Reviews of Licenses
- AL licenses are now subject to reassessment every five years, especially in high-pressure zones.
- Renewals are not guaranteed.
🧑🤝🧑 Co-ops and Condos Have a Say… But Not Always the Last Word
- In multi-unit buildings, the condo board (assembleia de condóminos) can vote to shut down AL activity.
- But here’s the twist: some savvy developers are designing new builds to be AL-friendly from the start.
- They include AL rights in the bylaws, and require a 100% owner vote to restrict or revoke AL use.
- Local builder relationships are key here — these projects exist, but you won’t find them on tourist blogs or Zillow.
Can You Still Get an AL License?
Yes — with caveats:
- Low-Density Areas: Many rural municipalities are still issuing AL licenses freely — and they’re gorgeous, by the way.
- Transfers with Property: Some licenses transfer with the sale of the property, but not always. Double-check every time.
- Primary Residence Rentals: Renting out rooms in your own home remains fair game and is exempt from most restrictions.
Hot Tips from the Trenches
- Check Local Rules: Each câmara municipal plays by its own rulebook. The website might not help, but the clerk with the rubber stamp matters.
- Verify Licenses: Don’t take a real estate listing’s word for it. Some AL licenses are tied to the owner, not the property.
- Go Rural: Areas like Évora, Castelo Branco, and interior Alentejo are license-friendly, beautiful, and on the tourist radar.
- Work with a Local Expert: A legal or real estate professional who actually knows the area is worth their weight in cured ham and granite.
Final Thoughts: Keep Calm and Know the Rules
The AL scene in Portugal isn’t dead, but it’s definitely… evolving. Fast. What was true last year may no longer apply this year, and there are workarounds — if you know where to look.
So yes, you can still invest wisely, generate income, and maybe even live that dream of sipping vinho verde on your rental property’s balcony while guests rave about your welcome basket. Just don’t go it alone, and don’t assume the red tape will untangle itself.
Cheers to navigating the maze — and doing it with a wink, a spreadsheet, and a killer local contact.