Updated 12/2024
What is Alojamento Local (AL)?
Alojamento Local (AL), which translates to “Local Accommodation,” is a type of short-term rental property in Portugal. These properties are typically apartments, houses, or villas that are rented out to tourists for short stays. To be able to rent out for short stays the owner needs to obtain an “Alojamento Local” (Short term rental) license. This license is subject to regulations that have been fluctuating.
Here is all you need to know:
Recent Changes to Alojamento Local Regulations
The regulations surrounding ALs have undergone significant changes in recent years, particularly in 2023 and 2024:
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- 2023 Measures to Protect Housing: To address concerns about housing availability and affordability, the Portuguese government introduced measures in 2023 that suspended the issuance of new AL licenses for newly purchased apartments. This measure specifically targeted apartments and did not affect villas or other detached housing types. Critically, even if an apartment possessed an existing AL license, it could not be transferred to a new owner upon sale. This restriction was part of a larger package of housing measures.
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- 2024 Changes: The 2024 changes brought about further significant shifts:
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- AL Licenses are Now Transmissible: One of the key changes is that AL licenses are now transferable again. This means that if you purchase a property with an existing AL license, you can continue to operate it as such.
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- Condominiums Can No Longer Oppose AL: Previously, condominium boards had the power to veto AL licenses within their buildings. This restriction has been lifted, giving property owners more freedom to utilize their properties as short-term rentals.
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- Transfer of Authority to Municipalities: Perhaps the most impactful change is transferring authority over AL regulations to individual municipalities. This decentralization of power allows each city to tailor its own rules and regulations regarding ALs within its borders.
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- 2024 Changes: The 2024 changes brought about further significant shifts:
The impact on Real Rstate
Lagos, heavily dependent on tourism, has already felt the impact of these changes. The restrictions introduced in 2023, particularly the inability to transfer existing AL licenses for apartments, significantly affected market dynamics. Demand for apartments fell drastically in 2024 as potential buyers who relied on rental income to offset mortgage costs exited the market. This created uncertainty and a cooling effect on apartment sales.
Current Situation in Lagos, Good News?
While municipalities have until November 2025 to define their local AL regulations, the 2023 national restriction on new AL licenses for recently purchased apartments technically remains in effect. However, the mayor has confirmed that new buyers can obtain AL licenses without restrictions in Lagos during this interim period. Lisbon, as an example, has already implemented its local regulations, establishing “Containment Areas” with AL restrictions and “Promotion Areas” where AL is encouraged.
Looking Forward
We recommend staying informed about the evolving situation. We will continue to update this guide with the latest developments regarding AL regulations in Lagos.
Disclaimer:
This guide is for informational purposes only and should not be considered legal advice. Please consult with a qualified professional regarding specific questions about Alojamento Local regulations in Lagos.
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