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Updated: March 30, 2023

If you are considering renting out your Portuguese property in the short term, you will need to obtain an Alojamento Local license – or AL license for short. 

Alojamento Local licenses are issued by the Câmara Municipal (local council town hall) and are required if you are going to rent your property out in the short term, for example, guest houses on Airbnb.  An AL license covers properties intended to be used by fewer than 50 people.

 

Obtaining an AL License

So, you have a lovely modern apartment in Portugal, and you’re looking to make a little extra cash on your investment. Perhaps you’re only in the property for part of the year and want to rent it out as a guest house while you are not in the country? Well, you’ll need to obtain an Alojamento Local license. 

To secure an Alojamento Local Portugal license, you will need to provide the necessary documents to the Câmara Municipal. An important aspect to consider is ensuring that all electric and gas installations fulfill the required standards. 

General Conditions for the AL license

Alojamento Local license holders will need to meet the following general conditions. The Tourism Board and the Food and Economic Security Authority (ASAE) can carry out inspections at any time to make sure all the legal requirements are followed, so it is important to ensure that everything is in order. 

  • The internal and external premises need to be maintained and in good condition. There needs to be an adequate standard of cleanliness and hygiene. 
  • The cleaning of the premises, including the changing of bed linen and towels, needs to take place at least once per week or whenever there is a new guest. 
  • There needs to be a private system with a controlled water supply, or the premises must have mains water connected. 
  • The premises need to be supplied with both hot water and cold water.

To successfully obtain your AL license, you will need to be registered with the Portuguese Tax Department (Autoridade Tributária e Aduaneira) and Social Security (Segurança Social). This is required for you to be able to operate a rental business. 

Note: Properties that a held by a company need to have a rental agreement in place with the individual. This is a requirement for the property to operate as a rental business. Working with a legal entity can help in this regard. 

Other Factors to Consider

The following are some factors that you should consider if you are thinking about renting out your properties in the short term. You should ensure that you have furnished accommodation and that guests have everything they may require.

 

More Information

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Frequently Asked Questions about the Alojamento Local Licence

What does Alojamento Local mean?

Alojamento Local refers to an establishment that provides temporary lodging services, usually for tourists, where they are required to pay a fee for using the premises. 

What is Alojamento Local law in Portugal?

To rent out your property to tourists in Portugal, you will first need to obtain an Alojamento Local (AL) license. 

How do I get an Alojamento Local in Portugal?

Alojamento Local licenses are issued by the Câmara Municipal (local council city hall) and are required if you are going to rent your property out in the short term. 

When you are up and running, you can have a look at room deals for similar properties on the market and seek expert advice to determine the price you should set.

How to apply for AL in Portugal?

To get an AL license, you will need to provide all the correct documentation, including making sure the gas and electric and gas installations fulfill the required standards. We recommend working with an experienced professional to guide you through the process.  

What are the Alojamento Local Lisbon requirements? 

The requirements in Lisbon are the same as anywhere else in Portugal. To obtain your AL license, you will need to be registered with the Portuguese Tax Department (Autoridade Tributária e Aduaneira) and Social Security (Segurança Social). This is required for you to be able to operate a rental business. You should have a certified accountant by your side to help with the process and ensure that your Alojamento Tax obligations are met. You should ensure that there are no restrictions on obtaining an AL license in Lisbon

You will need to ensure that your property has a fire extinguisher and fulfills the security requirements.

What are the Alojamento Local Portugal new rules in 2023?

There have been no new rules in 2023. The Portuguese law states that the individual that operates an Alojamento Local property is “jointly and severally liable with guests for damage caused by the latter to the building in which the unit is installed,” which you should bear in mind when obtaining your AL license in the country. Good places in Portugal to secure an AL license are Porto, the Algarve, and tourist hotspot locations. However, in the Braga district and northern Portugal, you will find properties that are more affordable. Another good location is the Silver Coast of Portugal, which is becoming increasingly popular with expats.

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