H13E - Holiday Rental Licence

Smaller holiday rental properties such as villas, apartments, rooms and guest houses, are classed as ‘Local Lodging’, or ‘Alojamento local’ (AL), under the legislation governing Tourist Rental properties. 

The latest AL law Decree-Law 76/2024 amended and added to the legal framework for the operation of Alojamento Local establishments, granting municipalities the legal tools to decide on the allocation, regulation, monitoring and promotion of intervention processes. 

Operating Conditions
The maximum capacity for a local lodging unit is 9 rooms and 27 users except for hostels and rooms category, that have no capacity limit. If they have suitable conditions, convertible and/or additional beds can be installed in AL units, as long as they do not exceed 50% of the number of fixed beds. 

Local lodging properties may be classed in one of these four categories: 

a) House = Villa, town house, family house 

b) Apartment = Self-sufficient partition of a building 

c) Guest house or Hostel = Property where the rooms are the units to be let 

d) Room = maximum of three “units” in the property

Local lodging properties must fulfil the following requirements: 

a) To be a well-preserved building (interior and exterior). 

b) To be connected to the water mains or alternatively have a private, correctly licenced, water supply system. 

c) To be connected to the main sewage system or have a septic tank, large enough for the maximum capacity of the lodging. 

d) To have running water supply, both cold and hot. 

e) Have adequate heating/cooling systems

f) Not have exposed wiring or unsafe fixtures

The lodging units must: 

a) Have a window or balcony facing the exterior, with good ventilation conditions.

b) Be furnished and equipped accordingly (the furniture must be in good condition and suitable for the number of guests declared)

c) Have any kind of system to allow blocking the light from outside. 

d) Have security equipment on the doors that allows the client’s privacy. 

e) Have certified fire extinguisher(s) and sign

f) Have a fire blanket in the kitchen and sign

g) Have First aid box and sign

h) Have smoke detectors in circulation areas and bedrooms

Hygiene requirements
The properties for local lodging must always meet good standards of tidiness and hygiene. 

Cleaning and maintenance, as well as changing bed linen and towels, must be done at least once a week and every time there is a change of client. There must be sufficient towels and bedlinen. 

Kitchens and bathrooms must meet food‑safety and sanitation standards. 

Proper waste bins with lids are required as well as clear instructions for local recycling rules.

Waste must be removed regularly to avoid pests and there can’t be sign of infestation. See also Sustainability Conditions below.

The property must have adequate sanitary facilities for its capacity.
Municipal inspectors check for:

• Functionality

• Hygiene

• Safety

• Reasonable suitability

Toilets in shared facilities must ensure privacy (e.g., doors that lock, proper separation).

Safety requirements
The local lodging properties must comply with the general fire safety regulations and the following requirements: 

a) Accessible fire extinguishers and fire blankets in an amount adequate to the number of lodging units. 

b) First aid equipment to EU standard (Carrying the ‘CE’ symbol) 

c) Instruction Manuals of all electric appliances existing in the units, in the absence of this, information about the use and functioning of these appliances must be provided. 

d) Visible information of the national emergency number (112). 

Fire‑safety
Fire‑safety obligations for Alojamento Local (AL) properties depend on the type of establishment and its capacity, but all AL units must comply with a minimum set of safety measures.

Minimum fire‑safety requirements for all AL properties
All AL units — including apartments, villas, rooms, and guesthouses — must have:

• A fire blanket installed in the kitchen

• At least one certified fire extinguisher per floor or per fire‑risk area

• Smoke detectors in circulation areas and bedrooms

• Emergency contact information clearly displayed

• Annual maintenance of extinguishers and safety equipment

These are the baseline requirements verified during municipal inspections.

Additional recommendations
Local fire brigades (Bombeiros) may recommend extra measures, such as placing a small extinguisher inside each room in guesthouses or B&B‑style establishments. These recommendations are not mandatory, but they can improve safety and may be encouraged during inspections.

Fire‑safety requirements for larger AL establishments
AL establishments with a capacity greater than 50 users must comply with the national Fire Safety Code (SCIE), which includes:

• A Fire Safety Project (Projeto de Segurança Contra Incêndios) prepared by a qualified technician

• Enhanced fire‑detection and alarm systems

• Emergency lighting and evacuation signage

• Fire‑resistant doors or compartmentation where required

• A fixed or mobile telephone with an external line for emergency use

These requirements apply mainly to large hostels or multi‑unit AL buildings.

Municipal requirements
Some municipalities may request additional documentation, such as a:

• Ficha de Segurança de Incêndio (Fire Safety Sheet)

• Planta de emergência (Emergency plan)

This varies by Câmara Municipal and is typically requested during or after inspection.

Access for disabled users

• The hostel with more than 50 beds / users must have at least one room and a sanitary facility adapted for users with reduced mobility, except in situations legally provided for in Decree-Law No. 163/2006, of 8 August, in its current wording.

• The toilet facility referred to in the preceding paragraph may be integrated into a joint toilet facility for people with and without mobility limitations. 

• Some municipalities may have additional accessibility rules.

The registration
In order to start a business renting your property, you must first of all, inform Finanças that you are indeed starting a business.
This can be done as an individual (sole trader) or through a company. Opening the activity is mandatory before issuing invoices or receiving rental income.

If you are not tax‑resident in Portugal, the rules for fiscal representation depend on your situation:

• EU/EEA residents You do not need a fiscal representative as long as you have a NIF and maintain a digital mailbox (ViaCTT). 

• Non‑EU/EEA residents You must appoint a fiscal representative in Portugal. This applies to anyone with Portuguese‑source income (including AL income).

The registration of rental properties are done online here or you can go to your local Câmara Municipal to ask for assistance with this: https://www2.gov.pt/inicio/espaco-empresa/balcao-do-empreendedor/alojamento-local-registo-da-atividade) where you can select the district and municipality at the bottom.

After the registration you need to take care of the public liability insurance. You will find more information below under Insurance.

The Câmara receives the registration electronically after you submit it online.

Within 60 days after presenting the request, the local Câmara will do an inspection to make sure that all the requirements are met. 

They check:

• Safety

• Hygiene

• Capacity

• Compliance with zoning rules

They may ask for:

• Electrical/gas certificates (certificate of compliance)

• Caderneta predial

• Proof of ownership

• Proof of Insurance

Limited containment areas
City hall offices may impose limits on the number of establishments offered in certain geographical areas, in order to "preserve the social reality of neighborhoods and places". In addition, in these areas the same owner can only operate a maximum of seven local accommodation establishments.

Capacity
The capacity of the rental properties is determined by the number of fixed beds (individual or double) to rent in the property. 

If they have suitable conditions, convertible and/or additional beds can be installed in AL units, as long as, they do not exceed 50% of the number of fixed beds.

Publicity
The publicity, commercial documentation and merchandising of the rental property, must show the name of the place followed by the “Alojamento local” registration number. 

Identification plate
Rental properties must have an identification plate outside the property and near the main entrance, an informative board.

This plate needs to be with the following mandatory characteristics:

• “AL” in uppercase

• Registration number

• Correct dimensions (20×20 cm or 10×10 cm for interior‑entrance cases*)

• Approved materials (e.g., acrylic, metal)

*When the entrance to the establishment is inside a building, it is possible to choose a plate of the same model and smaller size.

Complaints book
As any place open to the public these properties for rent are also required to have a complaints book (Livro de Reclamações). 

Information Book
The owners must provide a document with all the rules of use of the building, as well as with all the rules concerning “waste disposal and noise levels”. Where there is a written regulation of the condominium this must also be included and given to the guests. The document must also have the telephone contact of the person in charge of the operation of the establishment and be made available in Portuguese, English and “in at least two other foreign languages”.

Insurance
Local housing owners will be required to have a multi-risk insurance for damage that may be done in the common areas of a condominium, potentially being held liable for any damage caused by a guest with the capital minimum of €75,000 per claim. 

In the case of a local accommodation establishment integrated in a building under a horizontal property regime, the owner of the operation is also obliged to conclude or prove the existence of valid insurance that guarantees property damage directly caused by fire in or originating from the establishment. 

Municipalities can request proof of insurance, which must be provided within three days, under penalty of registration cancellation. 

To ensure that the registration of your Alojamento Local remains valid, you must submit proof of civil liability insurance when you are assigned the AL registration number before you start your activity and you must also send proof whenever you renew or change the insurance.

The proof of public liability insurance needs to be uploaded every year here: https://www.gov.pt/servicos/enviar-comprovativo-de-seguro-do-alojamento-local

Prior authorisation for hostels
As with the Municipal Councils, condominiums also see their authority extended. Under the law the operation of new AL units becomes dependent on their prior authorisation by the condominium.

Condominiums
The Condominiums have no power to approve or cancel AL licences. In the case where the AL activity is exercised in an autonomous part of a building, the meeting of co-owners may oppose the exercise of this activity through a reasoned decision approved by the majority of co-owners of the building, based on repeated and proven acts that disrupt the normal use of the building, as well as acts that cause nuisance and affect the rest of the owners. 

A decision must be requested from the mayor of the municipality. Upon receipt of the decision of the condominium owners' meeting, the mayor may promote the cancellation of the AL registration or invite the parties involved to reach an agreement, possibly with an AL ombudsman, to conclude the procedure by accepting commitments and conditions.

It should be noted that the decision to cancel the registration following the condominium’s resolution implies that the property in question cannot be operated as AL, for a period set in the decision (up to five years), regardless of ownership.

A regulation done by the Câmara Municipal may provide for the appointment of an AL ombudsman who supports the municipality in managing disputes between residents, owners of AL establishments and condominium owners or third parties with opposing interests.

Contributions to the condominium
Condominiums will be able to fix the payment of an additional contribution by the owners of local accommodation units, corresponding to the expenses arising from the increased use of the common parts, with a limit of 30% of the annual value.

Reception
Alojamento Local (AL) establishments must ensure that guests have access to a reception service, which includes check‑in, check‑out, and the ability to contact the operator. This service may be provided in person or remotely, including by telephone, email, or other electronic means.

Accommodation establishments, including hostels, must provide guests with clear means of communication with the person responsible for the AL, as well as visible information on the national emergency number (112) and the operator’s contact details.

Registration of clients
UCFE (Unidade de Coordenação de Fronteiras e Estrangeiros) will want to know if any foreign tourists are staying in Portugal, as well as the hotels, all local lodging owners must register their foreign clients with UCFE, their arrival, and their departure. All non-Portuguese clients must be registered with UCFE, online, within 3 days after they arrive and 3 days after they leave. This log of clients must be done online on a website specifically created for this https://siba.ssi.gov.pt. First of all, you need to register your property and get a log in and password, this way you have access to the lodging bulletins online at any time. Accommodation units classified as Alojamento Local must indicate their National Local Accommodation Registration (RNAL) number. The RNAL must be indicated at the time of registration and can be updated under the Atualização dos dados de inscrição (Update registration details) option. The manual in Portuguese can be downloaded here: https://siba.ssi.gov.pt/ajuda/manual/

Breakfast Service
Local accommodation establishments that provide breakfast must comply with all applicable hygiene and food‑safety regulations. Accommodation establishments and rooms that use the designation “Bed & Breakfast”, under Article 17(4) of Decree-Law no. 128/2014 are required to provide breakfast as part of the service.

Sustainability Conditions
Alojamento Local (AL) establishments are encouraged to adopt environmentally sustainable practices, particularly in the efficient use of water and energy, waste reduction, and responsible tourism information for guests. While these measures are not mandatory under national AL legislation, many municipalities and tourism authorities promote good environmental practices, such as waste‑separation facilities, the use of eco‑friendly cleaning products, and participation in voluntary sustainability programs or certification schemes (e.g., “Save Water”, “Green Key”). Establishments that choose to implement these measures may benefit from improved environmental performance and recognition through national or international sustainability seals.

Save Water stamp Algarve
Alojamento Local (AL) establishments in the Algarve can join the Commitment to Water Efficiency by signing up to the Monitoring Platform and obtaining the Save Water stamp. For more information and to sign up, go to the Commitment to Water Efficiency Platform

Enhanced enforcement
ASAE (Food and Economic Security Authority) municipal councils and parishes are responsible for supervising compliance with the provisions of this law, as well as announcing their respective processes and applying the respective fines and other sanctions. Municipalities can:

• Conduct regular or surprise inspections

• Suspend activity for non‑compliance

• Impose administrative fines

Fines
Fines will be imposed on owners of Alojamento Local accommodation who operate illegally, in particular in cases where the accommodation is unregistered or who fail to comply with the obligation to update all data in the Balcão Único Eletrónico and any breach of the maximum capacity of the establishments.

The penalties will be punished with fines ranging from € 2.500 to € 4.000 for individuals and €25.000 to €40.000 for companies.

End of activity
The owner of the Alojamento Local accommodation is also obliged to communicate, within 10 days, the cessation of the operation of the establishment online. The same deadline should be met for the reporting of closure to digital booking platforms such as Airbnb, Booking.com, etc.

For MORE information about ceasing your business, changes in the registration, clean & safe stamp or request a Complaints Book you can click on the following link: https://www2.gov.pt/en/fichas-de-enquadramento/alojamento-local. 

Licence transfer
Sellers can transfer an existing AL licence when selling a property and like that the new owner does not need to reapply for a new licence.

Include the AL licence in the sales contract
The seller and buyer must state in the promissory contract (CPCV) and the final deed (escritura) that:

• The property has an active AL registration

• The licence will be transferred to the new owner

After the deed is signed, the new owner must notify the municipality where the AL is registered.

This is done by:

• Submitting a communication of change of ownership

• Attaching the deed and identification documents

Each municipality has its own form or online portal, but the process is standard.

The new owner must update the registration on the official government platform:

Balcão do Empreendedor → Alojamento Local → Alteração de Titularidade

The new owner must also update:

AT (Autoridade Tributária)

• Register the AL activity under their NIF

• Update invoicing details

• Ensure VAT registration if required

AIMA Guest Reporting

• Update the SIBA account with the new owner’s details

• Ensure guest reporting continues without interruption

Insurance

• Transfer or obtain new civil liability insurance, which is mandatory for AL.

Information about Capital Gains tax you can find in our bulletin T07