(Effective November 1 2024)
The Local Lodging (AL) sector in Portugal has undergone significant changes with the implementation of Decree-Law No. 76/2024, published on October 23, 2024. These updates aim to provide better oversight, promote sustainable growth, and adapt AL practices to the specific needs of each municipality.
Key Changes:
- Municipal Oversight
Municipalities now have enhanced powers to regulate and monitor AL activities. They can adopt tailored administrative regulations and designate containment zones or sustainable growth areas to manage AL density effectively. - Licensing and Transfers
AL licenses are now transferable, even in cases of property sales. However, in containment zones, the rules set by municipalities may impose stricter conditions. - Reduced Condominium Powers
Under the new law, condominiums have diminished authority to close AL operations. Such closures are now primarily decided by municipalities, based on evidence of disturbance or misuse. Furthermore, property owners no longer need prior condominium approval to establish AL in residential buildings. - Revocation of “Mais Habitação” Measures
The government repealed several contentious measures from the previous “Mais Habitação” package, including the extraordinary contribution on AL properties, the coefficient of building age (vetustez), and coercive leasing policies. These changes aim to correct market distortions and encourage real estate investment. - Mandatory Communication of the AL Multirisk Insurance
The holder of the Local Accommodation registration must now submit the details of their multi-risk insurance policy electronically. This requirement applies to every new policy or renewal.
Failure to comply may result in cancellation of the registration by the local council.
Impact and Next Steps
These changes are expected to streamline AL operations, reduce conflicts in shared spaces, and foster sustainable development. Property owners and investors should carefully review the new regulations and adapt their practices accordingly.
For personalized advice or more information about how these changes may affect you, feel free to contact us.