Portugal has passed batch of new housing laws, and one provision will have a serious effect on short-term vacation rentals, with a ban on new licenses for Airbnb-like accommodation in most of the country.
Presently, short-term rentals are permitted with a permit for Alojamento Local, or local accommodation, but under the new law, no new permits will be issued except for “rural accommodation in municipalities in the interior of the country where rural accommodation can make an important contribution to the economy of that territory.”
The intent of the law is to preserve housing stock for long-term renters and residents, and it will encourage owners to return properties to the rental market. The encouragement comes in the form of an exemption from income tax until 2030 on properties returned to the regular rental market by the end of 2024.
Those properties that have AL licenses will be subject to re-evaluation in 2030 “to see if is justified or not to keep them.” After that, they will be subject to review every five years.
