Of the 124,000 holiday rental (AL) properties registered in the country, only 50,000 have provided proof of activity by showing proof of civil liability insurance. In other words, there are 70,000 establishments that risk being cancelled, since submitting this document is mandatory to guarantee the legality of the activity, according to Diário de Notícias.
The Portuguese Local Accommodation Association (ALEP) warns that the period for submitting documents is in its final stretch, and city councils will start sending cancellation orders to owners who have not complied with the rules starting next week. In Lisbon alone, more than half of the 19,000 local accommodations have not yet provided proof of activity.
ALEP estimates that there are approximately 50,000 inactive registrations, corresponding to “phantom licenses”.
“Considering our projection on the number of AL properties that are not operational, we expected that, at this time, approximately 70,000 proofs of active ALs would have already been submitted. There is a fringe of 20,000 units whose activity is at risk. At this time, there are 70,000 registrations in the process of being cancelled”, explains the association’s president, Eduardo Miranda.
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Time to shut down this racket.
It benefits only a very few.
Destroys cities towns villages and communities.
Property is for living in.Not for turning everywhere into de facto hotel room.
Add in these landlords receive crazy tax breaks paid for by everyone else.
Let's get our country cities towns villages and communities back
By James from Algarve on 18 Jun 2025, 16:23
This is nothing but a scam. I rent out several properties in Lisbon and Porto for stag weekends and each guests spends thousands of euros on alcohol, creating prosperity and jobs for the local economy. So what if a few jealous neighbours complain about the noise and parties.
By Mark Barber from UK on 19 Jun 2025, 09:21
There may well be an excess of AL's in the Algarve, Lisbon and Porto where careful consideration of registraion is needed, but the AL's in quieter rural areas bring in much needed income to the area. Not everything is all about these the Algarve and major cities.
Better would be to have a crackdown on non registered rentals, all rented out under the radar where there have been no appropriate checks made, often no insurance taken out, no safety checks, no tax paid etc etc.
By Stephen from Beiras on 19 Jun 2025, 12:47
In many ways I agree with @James comments. However, there are some important factors to note about AL properties, when legal, registered and properly insured. AL properties are not homes - they are tourism accommodations where Health & Safety systems need to be in place and public liability insurance is needed to cover guests while at their accommodation.
Having worked for many years in tourism and setting up systems for cities and countries to regulate this sector, I have worked across the AL (AirBNB, HomesAway, etc) groups, to make sure they conform (and report to authorities) those outside the rules. (Their systems are that good).
Good reasons to support legal AL's:
1. Revenue from visitors is 70% retained locally - Hotel chains leave only 20% of their earnings locally and send the rest back to their HQ.
2. AL visitors spend 60% more on local restaurants, markets, retail - while hotels package Dinner, Bed & Breakfast, forcing visitors to eat in the hotel - and then send the profit to their HQ.
3. AL visitors are 50% more likely to do their own research on a destination - and then use local tours and tour guides to do what they want - rather than leaving it to their travel agent to "package" this into a cheap, coach and group tour, sold at high prices, the profits of which end up at their HQ, less commissions.
4. The taxation (Tourism tax, VAT, and AL duties) are high on AL, while hotel chains have international (and local) bulk revenue agreements in place (and an army of lawyers & accountants) in place to make sure every loophole is used to deduct from taxes.
5. AL investment/sq meter is higher than a hotel - and they are 75% more likely to use local builders, artisans & suppliers than hotels do!
By Tony Williams from Other on 19 Jun 2025, 15:30
Local Accommodation: A Driver of Urban Renewal and Economic Growth in Portugal
In recent years, the Local Accommodation (AL) regime has proven to be one of the most effective tools for economic revitalisation and urban regeneration in Portugal. Far beyond simply responding to increased tourist demand, AL has played a crucial role in reviving historic city centres, attracting foreign investment, and retaining young talent within the country.
Neighbourhoods that had long been abandoned in cities such as Lisbon, Porto, Braga, or Faro have been brought back to life through the rehabilitation of derelict buildings for tourist use. This urban renewal not only restored architectural heritage but also improved safety, pedestrian activity, and local commerce.
The impact on Gross Domestic Product (GDP) has also been significant. AL has helped to attract billions of euros in direct investment, contributed to the expansion of tourism offerings, increased tax revenues, and created thousands of direct and indirect jobs.
Equally important has been AL’s role in retaining young entrepreneurs. Many Portuguese who, in previous decades, might have emigrated due to lack of opportunities chose instead to start small businesses in hospitality, property management, cultural experiences, or maintenance services. These ventures, often born from individual initiative, evolved into structured organisations generating employment and long-term value.
While it is legitimate to consider regulatory measures to avoid distortions in local housing markets, any such approach must recognise the structural role that AL has played — and can continue to play — in the urban modernisation and sustainable economic development of the country.
By Nuno from Algarve on 19 Jun 2025, 19:31
"So what if a few jealous neighbours complain about the noise and parties."
By Mark Barber from UK
This is exactly the selfish trash landlord that has destroyed cities towns villages and communities
Time to shut them all down and tax them out of existence
By James from Algarve on 20 Jun 2025, 14:37