Alojamento Local (AL) — Short-Term Rental in Portugal
The licensing regime that governs Airbnb-style rentals. Where AL is restricted, how to apply, the recent rule changes, and what happens to existing licences when you buy.
Updated April 2026What Is Alojamento Local?
Alojamento Local (AL) is Portugal’s licensing framework for short-term rental of residential property — the legal regime that covers Airbnb, Booking.com, Vrbo, and any letting under 30 days. Every property used for short-term lets must be registered as AL on the national register (RNAL) and have a licence number displayed on listings.
The framework has shifted significantly in recent years. The Mais Habitação package in 2023 froze new AL registrations in many high-pressure areas, then a reformist government partially reversed those rules in 2024. The current position varies by municipality and parish, so checking what applies to a specific property is now an essential part of buyer due diligence if rental income is part of your plan.
This guide covers how the regime works, where AL is currently restricted, what to verify before you buy a property as a rental, and the operational rules once you’re running an AL.
How AL Registration Works
The mechanics of getting and holding an AL licence.
Where you register
The Registo Nacional de Alojamento Local (RNAL), operated through the Balcão do Empreendedor portal. The registration is free of charge and produces a unique licence number that must appear on every listing.
Property requirements
The property must have a valid habitation licence, meet basic safety standards (smoke detectors, fire extinguisher, first-aid kit, complaints book), and have buildings insurance. The unit must be self-contained and not exceed certain capacity rules per type.
Categories
The four categories: moradia (whole house), apartamento (apartment), estabelecimento de hospedagem (mostly hostels, with hostelaria sub-category), and quartos (single rooms in your own home). Most investors operate moradias and apartamentos.
Tax registration
AL income must be declared. You can opt for the simplified regime (most operators) where 35% of rental income is taxable and 65% is presumed expense, or report under category B with full bookkeeping. AL income is taxed at 25% for non-residents.
Operational rules
Maintain a complaints book. Display licence number visibly. Submit guest information to the SEF/AIMA portal within 3 days of arrival. Pay annual safety inspection fees if a council requires.
Restricted Areas & the Current Rules
Where new AL registrations are frozen, restricted, or subject to extra approvals.
"Contention zones" (zonas de contenção)
Several Lisbon and Porto parishes have been declared zones of containment, where new AL registrations are limited or frozen. Check the specific parish before buying.
Mais Habitação vs partial repeal
The 2023 Mais Habitação law banned new AL registrations across most of urban Portugal. The 2024 government partially repealed it: new registrations are now possible in most areas again, but municipal councils retain power to set local restrictions. The rules in 2026 vary parish-to-parish.
Margem Sul status
In the Margem Sul (Lisbon’s south bank), AL registration remains broadly possible across most parishes. Specific contention zones exist in parts of central Almada and the Costa da Caparica strip during peak periods. Outside those, application is straightforward.
Condomínio rules
Even where municipal rules permit AL, individual condomínios can vote to restrict it within their building. A two-thirds majority of owners can ban AL in a building. Check the most recent assembleia minutes before buying any apartment intended for AL.
Licence transfer when you buy
Existing AL licences are tied to the operator, not the property — so when ownership changes, the old licence is cancelled and the new owner must register fresh. In a contention zone, this can mean the AL falls away on sale and can’t be re-registered.
Buying for AL? Verify everything before you commit
If your purchase plan depends on AL income, four things must be confirmed: the parish allows new AL registrations, the building’s condomínio doesn’t prohibit AL, the property has a valid habitation licence, and the existing AL (if any) transfers cleanly to you. Get all of this in writing from your lawyer before signing the CPCV.
Running a Short-Term Rental in Portugal
The practical operational considerations once you’re AL-registered.
Insurance
Standard buildings insurance is not enough. Specific AL liability cover is required to protect against guest injury or damage claims. Most insurers offer dedicated AL products.
Tax and accounting
Issue electronic receipts for every booking via Portal das Finanças. Submit annual IRS declaration including AL income. Most operators use the simplified regime; high-volume operators benefit from organised accounts. A Portuguese accountant familiar with AL is recommended.
Cleaning, key handover, complaints
You’ll need either a hands-on operation or a property management company. Common AL management fees: 15–25% of revenue. The complaints book (livro de reclamações) is mandatory and must be available to guests on request.
Annual safety inspections
Some councils require periodic safety inspections (smoke detectors, electrical, gas). Fees and frequency vary by municipality.
Reporting guests
Every foreign guest must be registered with SEF/AIMA via the SIBA portal within 3 working days of arrival. Failure to report is fineable.
Is AL Still a Good Investment?
A clear-eyed look at the economics in 2026.
Yields under pressure
Coastal Margem Sul AL yields ran at 6–9% net during peak years. Tighter regulation, higher operational costs, and increasing supply have compressed yields to 4–7% in most coastal segments. Still attractive against bank deposits, but no longer a guaranteed boom.
Mid-term rental as alternative
For many Margem Sul properties, mid-term rental (1–6 month corporate or remote-worker lets) now produces yields close to AL with less operational overhead and lower regulatory risk. Worth modelling against AL.
Capital appreciation argument
For investors prioritising capital appreciation over rental yield, the Margem Sul still has a clear growth story. Combining a rental strategy with a multi-year capital play often beats pure rental focus.
Coastal seasonality
Margem Sul AL is heavily seasonal — summer carries the year. Realistic occupancy: 90%+ Jul–Aug, 50–70% shoulder seasons, 20–40% winter. Pricing strategy and operational cost both need to fit that pattern.
Regulatory tail risk
The AL regime has been politically volatile and could tighten again. Buyers who structure their investment to be viable as long-term residential let if AL becomes uneconomic are protected; buyers who assume AL forever are exposed.