Authored by the expert who managed and guided the team behind the Portugal Property Pack
Everything you need to know before buying real estate is included in our Portugal Property Pack
Yes, you can legally operate an Airbnb in your Portugal apartment if you obtain the proper Alojamento Local (AL) license and meet all regulatory requirements.
However, as of September 2025, many areas including central Lisbon, Porto, and parts of the Algarve have suspended new AL license registrations due to housing policies aimed at protecting local rental markets. Existing licenses remain valid and can often transfer with property sales, but securing new permits has become significantly more challenging in high-density tourist zones.
If you want to go deeper, you can check our pack of documents related to the real estate market in Portugal, based on reliable facts and data, not opinions or rumors.
Portugal requires an Alojamento Local (AL) license for all short-term rentals, but many municipalities have suspended new registrations as of 2024-2025.
Property owners must navigate municipal restrictions, obtain proper licensing, meet safety requirements, register for tax purposes, and comply with ongoing reporting obligations.
| Requirement Category | Key Details | Cost/Timeline |
|---|---|---|
| AL License | Mandatory for all short-term rentals via municipal application | €20-€200, 10-20 days approval |
| Municipal Restrictions | Lisbon, Porto, Algarve have suspended new registrations | Check local zoning maps |
| Tax Registration | Register with Autoridade Tributária before hosting | 15-28% of gross income |
| Safety Requirements | Fire equipment, insurance, evacuation plans mandatory | €200-€500 setup costs |
| Condominium Rules | Building assembly can prohibit short-term rentals | Written approval needed |
| Penalties | Operating without license incurs fines up to €15,000 | Plus forced de-registration |
| Ongoing Compliance | Annual inspections, tax filings, guest reporting required | Continuous obligations |
Fact-checked and reviewed by our local expert
João Morais 🇵🇹
Founder | Real Estate Advisor, at Wilderness Investments
Do I legally own the apartment in a way that allows me to rent it out short-term in Portugal?
Yes, if you hold full legal ownership of your apartment in Portugal, you have the right to rent it out short-term, provided you comply with all licensing and regulatory requirements.
Your property deed (escritura) or property booklet (caderneta predial) serves as proof of ownership and is required for the Alojamento Local license application. Foreign property owners have the same rental rights as Portuguese citizens, but must obtain a Portuguese tax number (NIF) before beginning the licensing process.
However, ownership alone is not sufficient - you must also verify that your specific property type and location are eligible for short-term rental operations. Some properties may have deed restrictions or be classified in ways that prevent commercial rental activities.
If you own the apartment through a lease agreement rather than outright ownership, you'll need explicit written permission from the property owner to operate short-term rentals. Most standard lease agreements in Portugal do not automatically grant subletting rights for tourist accommodation.
Is the apartment located in an area where the local municipality currently allows new Airbnb or "Alojamento Local" registrations?
As of September 2025, many Portuguese municipalities have suspended new Alojamento Local registrations, particularly in high-density tourist areas.
Lisbon has imposed restrictions on new AL licenses in most central parishes, including Misericórdia, Santa Maria Maior, and Santo António. Porto has similarly suspended new registrations in the historic center and many downtown areas. Several Algarve municipalities, including parts of Lagos, Portimão, and Albufeira, have also implemented moratoria on new short-term rental licenses.
To determine if your specific location accepts new registrations, you must check with your local Câmara Municipal (city hall) or consult their online zoning maps. Each municipality maintains different policies and some areas that were previously restricted may reopen for new applications, while others may extend their suspension periods.
Existing AL licenses remain valid and can typically transfer to new property owners upon sale, making properties with existing licenses more valuable in restricted zones. Some municipalities issue licenses on a quota system, where a limited number of new permits may become available each year.
What exact license or permit do I need to operate my apartment as an Airbnb in Portugal, and where do I apply for it?
You need an Alojamento Local (AL) license to legally operate any short-term rental in Portugal, including Airbnb listings.
Applications must be submitted through your municipality's Balcão Único Eletrónico (unified electronic desk) online portal, or in person at the local Câmara Municipal offices. The specific application system varies by municipality - Lisbon uses the "Lisboa Aberta" platform, while Porto uses "Porta do Munícipe."
You must also register your rental activity with the Portuguese Tax Authority (Autoridade Tributária) using business activity codes CAE 55201 for apartments or CAE 55204 for hostels. This tax registration must be completed before submitting your AL license application.
What documents and information will I have to submit with my license application?
The AL license application requires a comprehensive document package to verify ownership, safety compliance, and legal authorization.
- Proof of property ownership (escritura or caderneta predial) or lease agreement with landlord authorization
- Valid identification (passport or Portuguese ID card)
- Portuguese Tax Number (NIF) registration certificate
- Responsibility statement (Termo de Responsabilidade) declaring compliance with regulations
- Current energy performance certificate for the property
- Civil liability insurance policy covering short-term rental activities
- Property floor plan and layout drawings
- Fire safety compliance certificate and evacuation plan
- Business activity registration proof from the Tax Authority
- For condominium properties: written authorization from the building assembly or management
All documents must be submitted in Portuguese or officially translated. Some municipalities may require additional documentation such as accessibility compliance certificates or neighborhood impact assessments.
How much does it cost to obtain and renew the short-term rental license, and how long does the approval process usually take?
| Fee Type | Cost Range | Timeline |
|---|---|---|
| Initial AL License Application | €20 - €200 | 10-20 days |
| Electronic Registration (some municipalities) | Free | 5-10 days |
| License Renewal (annual) | €0 - €100 | 5-15 days |
| Hostel License (special category) | €50 - €300 | 20-30 days |
| Amendment/Modification Fees | €10 - €50 | 5-10 days |
| Late Renewal Penalty | €25 - €150 | Immediate |
| Appeals Process | €30 - €100 | 30-60 days |
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Are there any restrictions from my condominium association or building rules that could stop me from renting on Airbnb?
Yes, condominium associations in Portugal have legal authority to prohibit or restrict short-term rental activities within their buildings.
Building assemblies can vote to ban tourist accommodation entirely, limit the number of AL units permitted, or impose specific operational conditions such as restricted check-in hours or mandatory concierge services. These decisions require a majority vote during a condominium assembly meeting and become binding for all unit owners.
Before applying for an AL license, you must obtain written confirmation from your building's condominium administration stating that short-term rentals are permitted. Some buildings require formal assembly approval, particularly for hostels or properties accommodating more than 6 guests.
Many luxury buildings in Lisbon and Porto have proactively banned short-term rentals to preserve residential character and property values. It's essential to verify building rules before purchasing an investment property intended for Airbnb operations.
It's something we develop in our Portugal property pack.
What specific safety, health, and equipment requirements must my apartment meet to qualify?
Portuguese law mandates comprehensive safety and health standards for all Alojamento Local properties to protect guest welfare and ensure emergency preparedness.
- Fire safety equipment: smoke detectors in all rooms, fire extinguishers, emergency lighting, and clearly marked evacuation routes
- First aid kit accessible to guests with basic medical supplies
- Civil liability insurance covering a minimum of €25,000 per incident for guest injuries or property damage
- Accessibility features including ramps or elevators where required by local building codes
- Proper ventilation systems and compliance with health department sanitation standards
- Guest registration book for police reporting requirements
- Emergency contact information posted in Portuguese and English
- Valid habitability certificate demonstrating the property meets residential standards
Municipal inspectors conduct initial safety assessments before license approval and may perform random inspections during operation. Properties failing safety compliance face immediate license suspension until violations are corrected.
What are the tax obligations for income earned from Airbnb in Portugal, and how much should I expect to set aside?
All Airbnb income in Portugal is subject to Portuguese taxation and must be declared to the Autoridade Tributária regardless of your residency status.
As an individual property owner, you'll typically pay between 15-28% of gross rental income in taxes, depending on your total annual income and applicable deductions. If you operate as a registered business entity, corporate tax rates may apply instead, potentially offering different deduction opportunities.
Portuguese residents pay progressive income tax rates on rental income, while non-residents face a flat 25% rate on gross income with limited deduction opportunities. Additional social security contributions may apply if rental income exceeds certain thresholds or constitutes your primary income source.
You can deduct legitimate business expenses including property management fees, cleaning costs, utilities, maintenance, insurance premiums, and depreciation. Keep detailed records of all expenses and issue digital invoices for all rental transactions as required by Portuguese tax law.
Do I need to register with the Portuguese tax authority before hosting?
Yes, you must register your short-term rental activity with the Autoridade Tributária before accepting any guests or generating rental income.
Registration involves obtaining a Portuguese tax number (NIF) if you don't already have one, then declaring your rental activity using the appropriate business activity code (CAE 55201 for apartments or CAE 55204 for hostels). This registration establishes your tax obligations and enables legal invoice issuance.
The registration process can be completed online through the AT website or in person at local tax offices. You'll need to specify your expected annual income and choose between individual or business tax treatment. Digital invoice capability is mandatory for all AL operators to comply with Portuguese tax reporting requirements.
Operating without proper tax registration can result in significant penalties and may invalidate your AL license. Complete this step before submitting your municipal license application to ensure full legal compliance.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Portugal versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
Are there caps on the number of days per year I can rent my apartment on Airbnb in Portugal?
Portugal does not impose national limits on the number of days per year you can operate your Airbnb, but individual municipalities may establish local restrictions.
Some municipalities in the Algarve have experimented with seasonal caps during peak summer months to balance tourism with housing availability for residents. Lisbon and Porto have not implemented day limits but instead focus on controlling the total number of AL licenses issued in specific neighborhoods.
Your AL license typically permits year-round operation, but you must comply with any building-specific restrictions imposed by condominium associations. Some buildings limit short-term rentals to certain months or impose maximum occupancy periods.
It's something we develop in our Portugal property pack.
What are the penalties or fines if I rent out my apartment without the proper license?
Operating an unlicensed short-term rental in Portugal carries severe financial penalties and legal consequences that can far exceed potential rental profits.
Fines for unlicensed AL operations start at €2,500 and can reach €15,000 per violation. Repeat offenders face escalating penalties, and authorities may impose daily fines until compliance is achieved. Additionally, unlicensed operators cannot legally collect tourist tax from guests, creating further regulatory violations.
Beyond monetary penalties, unlicensed operators face forced closure orders, potential criminal charges for tax evasion, and civil liability issues if guests are injured without proper insurance coverage. Condominium associations can also pursue legal action to stop unauthorized commercial activities within residential buildings.
Municipalities actively monitor booking platforms and cross-reference listings with licensed properties. Enforcement has increased significantly since 2024, with dedicated inspection teams conducting surprise visits to suspected unlicensed operations.
Once I'm licensed, what ongoing reporting, inspections, or compliance requirements will I need to follow each year?
Licensed AL operators must maintain continuous compliance through regular reporting, tax obligations, and facility maintenance requirements.
- Monthly guest reporting to SEF (immigration service) and local police within 24 hours of check-in
- Annual tax filings declaring all rental income and eligible business expenses
- Digital invoice issuance for all rental transactions through certified software
- Annual license renewal with updated documentation and fee payment
- Maintenance of current civil liability insurance and safety equipment
- Compliance with municipal tourism tax collection and remittance
- Random municipal inspections for safety and operational compliance
- Updates to registration information for any property modifications or ownership changes
Failure to meet ongoing requirements can result in license suspension or revocation. Many municipalities now require annual safety inspections and updated energy certificates to maintain active AL status.
It's something we develop in our Portugal property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Successfully operating an Airbnb in Portugal requires navigating complex municipal regulations, obtaining proper licensing, and maintaining ongoing compliance with safety and tax requirements.
While the restrictions in major cities have made new license acquisition challenging, property owners who secure proper authorization can still operate profitable short-term rentals with careful attention to regulatory requirements.
Sources
- Portugal Residency Advisors - Short-term Rentals Guide
- Global Citizens Solutions - Portugal Short-term Rentals
- Portugal Investment Properties - AL License Guide
- Portugal Buyers Agent - 2025 Short-term Rental Update
- Portugal Buyers Agent - Alojamento Local Guide
- Portugal Portfolio - Alojamento Local Requirements
- LVP Advogados - Legal Alternatives to AL
- Sovereign Group - New AL Rules 2025