All Mais Habitação measures for short-term rentals in Portugal

Important note about legislative changes

Short-term rentals (alojamento local) in Portugal have undergone significant changes recently. The “Mais Habitação” package (Law No. 56/2023) introduced various restrictions that were subsequently reversed by the current government.

Current legislation returns decision-making power about short-term rentals to municipalities, reversing license expiry rules, license transmissions, condominium veto powers, and eliminating tax penalties.

Transition period: Municipalities are analysing their territories and preparing local regulations that will define containment areas and sustainable growth zones. During this period, some previous restrictions may still apply until new municipal regulations are published.

Recommended action: This is the ideal time to apply for licenses, before municipal regulations potentially introduce new restrictions, validity periods, or transmission limits.


What is Mais Habitação?

“Mais Habitação” (More Housing) was a legislative package (Law No. 56/2023 | DR) created to facilitate access to and maintenance of primary residence properties. This set of legislative changes was extensive in that it sought to intervene in practically all aspects of the property market, working with landlords and tenants, owners and investors, various rental markets, and the processes and fees involved in acquiring, maintaining, or transferring properties.

The following government published its own housing programme, Construir Portugal (Building Portugal), which describes the revocation and reversal of all measures imposed by Mais Habitação. Many of these reversals are already in effect.

Mais Habitação had as one of its objectives making more properties available at affordable prices in the long-term rental market, which was also sought through transferring short-term rental apartments to residential letting.


Short-term rental licenses – Current framework

Suspension of new licenses – Transition phase

The national suspension on issuing new short-term rental licenses for “apartment” and “accommodation establishment integrated in an autonomous fraction of a building” categories is being reversed through decentralisation of decision-making power to municipalities.

Current framework: Legislation in force returns decision-making power over new licenses to municipalities, allowing them to determine the appropriate balance in each parish or part of a parish. This decentralisation aims to enable better control of all urban areas, allowing more equitable distribution of short-term rentals.

Containment and sustainable growth areas

Municipalities are analysing their territories to define:

  • Containment areas: zones where the ratio of short-term rentals to housing units is very high;
  • Sustainable growth areas: zones where the sector should be monitored to avoid excessive housing pressure;

Each municipality will establish its own rules, which may include prohibitions, issuing licenses for fixed periods, or restrictions for certain types of buildings.

Current status: Municipalities are preparing their regulations. This guide will be updated with specific information for each municipality as local rules are published.

Territories where licenses can be obtained

While municipal regulations are being prepared, it’s possible to obtain short-term rental licenses in:

  • Interior territories without declared housing shortage
  • Autonomous regions of the Azores and Madeira
  • Properties included in the Revive Natureza Fund
  • Other areas, subject to authorisation from municipal councils

Verification needed: We recommend contacting your local municipal council to confirm the current situation in your specific municipality.

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Interior territories and short-term rentals

Interior territories correspond to municipalities and parishes identified by the Government in the annex to Order No. 208/2017. These areas traditionally don’t suffer the same restrictions as major urban centres.

The complete list of interior territories includes:

Alentejo Central

Alandroal, Arraiolos, Borba, Estremoz, Évora, Montemor-o-Novo, Mora, Mourão, Portel, Redondo, Reguengos de Monsaraz, Vendas Novas, Viana do Alentejo and Vila Viçosa in their entirety.

Alentejo Litoral

Alcácer do Sal, Grândola, Odemira and Santiago do Cacém in their entirety.

Algarve

Alcoutim, Aljezur, Castro Marim, Monchique and Vila do Bispo in their entirety. In the municipality of Loulé: Alte, Ameixial, Salir, Union of the parishes of Querença, Tôr and Benafim. In the municipality of Silves: São Marcos da Terra. In the municipality of Tavira: Cachopo and Santa Catarina da Fonte do Bispo.

Alto Alentejo

Alter do Chão, Arronches, Avis, Campo Maior, Castelo de Vide, Crato, Elvas, Fronteira, Gavião, Marvão, Monforte, Nisa, Ponte de Sor, Portalegre and Sousel in their entirety.

Alto Minho

Arcos de Valdevez, Melgaço, Monção, Paredes de Coura, Ponte da Barca and Vila Nova de Cerveira in their entirety. In the municipality of Caminha: Union of the parishes of Arga (Baixo, Cima and São João), Union of the parishes of Gondar and Orbacém, and the parish of Dem. In the municipality of Ponte de Lima: Anais, Ardegão, Freixo and Mato, Association of parishes of Vale do Neiva, Bárrio and Cepões, Beiral do Lima, Boalhosa, Cabaços and Fojo Lobal, Cabração and Moreira do Lima, Calheiros, Estorãos, Friastelas, Gemieira, Gondufe, Labruja, Labrujó, Rendufe and Vilar do Monte, Navió and Vitorino dos Piães, Poiares and Serdedelo. In the municipality of Valença: Boivão, Fontoura, Union of the parishes of Gondomil and Sanfins and Union of the parishes of São Julião and Silva. In the municipality of Viana do Castelo: the parish of Montaria.

Alto Tâmega

Boticas, Chaves, Montalegre, Ribeira da Pena, Valpaços and Vila Pouca de Aguiar in their entirety.

Porto Metropolitan Area

Arouca in its entirety. In the municipality of Vale de Cambra: Arões and Junqueira.

Ave

Cabeceiras de Basto, Fafe, Mondim de Basto, Póvoa de Lanhoso and Vieira do Minho in their entirety. In the municipality of Guimarães: Union of the parishes of Arosa and the parish of Castelões.

Baixo Alentejo

Aljustrel, Almodôvar, Alvito, Barrancos, Beja, Castro Verde, Cuba, Ferreira do Alentejo, Mértola, Moura, Ourique, Serpa and Vidigueira in their entirety.

Beira Baixa

Castelo Branco, Idanha-a-Nova, Oleiros, Penamacor, Proença-a-Nova and Vila Velha de Ródão in their entirety.

Beiras and Serra da Estrela

Almeida, Belmonte, Celorico da Beira, Covilhã, Figueira de Castelo Rodrigo, Fornos de Algodres, Fundão, Gouveia, Guarda, Manteigas, Meda, Pinhel, Sabugal, Seia and Trancoso in their entirety.

Cávado

Terras de Bouro and Vila Verde in their entirety. In the municipality of Amares: Bouro (Santa Marta), Goães, Union of the parishes of Caldelas, Sequeiros and Paranhos and Union of the parishes of Vilela, Seramil and Paredes Secas.

Douro

Alijó, Armamar, Carrazeda de Ansiães, Freixo de Espada à Cinta, Lamego, Mesão Frio, Moimenta da Beira, Murça, Penedono, Peso da Régua, Sabrosa, Santa Marta de Penaguião, São João da Pesqueira, Sernancelhe, Tabuaço, Tarouca, Torre de Moncorvo, Vila Nova de Foz Côa and Vila Real in their entirety.

Lezíria do Tejo

Chamusca and Coruche in their entirety. In the municipality of Santarém: Union of the parishes of Casével and Vaqueiros.

Médio Tejo

Abrantes, Constância, Ferreira do Zêzere, Mação, Sardoal, Sertã, Vila de Rei and Vila Nova da Barquinha in their entirety. In the municipality of Tomar: Olalhas, Sabacheira, Union of the parishes of Além da Ribeira and Pedreira, Union of the parishes of Casais and Alviobeira and Union of the parishes of Serra and Junceira. In the municipality of Ourem: Espite, Union of the parishes of Freixianda, Ribeira do Fárrio and Formigais, Union of the parishes of Matas and Cercal and Union of the parishes of Rio de Couros and Casal dos Bernardos.

Aveiro Region

Sever do Vouga in its entirety. In the municipality of Águeda: Union of the parishes of Belazaima do Chão, Castanheira do Vouga and Agadão and Union of the parishes of Préstimo and Macieira de Alcoba.

Coimbra Region

Arganil, Góis, Lousã, Miranda do Corvo, Mortágua, Oliveira do Hospital, Pampilhosa da Serra, Penacova, Penela, Soure, Tábua and Vila Nova de Poiares in their entirety. In the municipality of Condeixa-a-Nova: parish of Furadouro.

Leiria Region

Alvaiázere, Ansião, Castanheira de Pêra, Figueiró dos Vinhos and Pedrógão Grande in their entirety. In the municipality of Pombal: parish of Abiul. In the municipality of Porto de Mós: parish of São Bento.

Viseu – Dão – Lafões Region

Aguiar da Beira, Carregal do Sal, Castro Daire, Mangualde, Nelas, Oliveira de Frades, Penalva do Castelo, Santa Comba Dão, São Pedro do Sul, Sátão, Tondela, Vila Nova de Paiva and Vouzela in their entirety. In the municipality of Viseu: Calde, Cavernães, Cota, Ribafeita, São Pedro de France and Union of the parishes of Barreiros and Cepões.

Tâmega and Sousa

Baião, Celorico de Basto, Cinfães and Resende in their entirety. In the municipality of Amarante: Ansiães, Candemil, Gouveia (São Simão), Jazente, Rebordelo, Salvador do Monte, Union of the parishes of Aboadela, Sanche and Várzea, Union of the parishes of Bustelo, Carneiro and Carvalho de Rei, Union of the parishes of Olo and Canadelo, and Vila Chã do Marão. In the municipality of Castelo de Paiva: parish of Real. In the municipality of Marco de Canavezes: Várzea, Aliviada and Folhada.

Terras de Trás-os-Montes

Alfândega da Fé, Bragança, Macedo de Cavaleiros, Miranda do Douro, Mirandela, Mogadouro, Vila Flor, Vimioso and Vinhais in their entirety.

This list can always be consulted directly in the full publication of the Official Gazette (Diário da República), being detailed in the annex to article 2 of Order No. 208/2017.


Conditions for issuing new short-term rental licenses

To apply for a short-term rental license, it remains necessary to submit a prior communication addressed to the municipal council through the electronic single desk (balcão único eletrónico).

However, if the property in question is an autonomous fraction of a building under the horizontal property regime intended, according to its title, for housing, it’s now necessary to add to the license application minutes from a condominium meeting authorising the installation and use of the fraction as short-term rental (amendments to articles 5 and 6 of Decree-Law No. 128/2014).

Note: This condominium requirement will be reversed from November onwards. See the “Condominiums and short-term rentals” section for more details.


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License expiry and validity

Legislation in force has eliminated the expiry conditions imposed by Mais Habitação:

  • Licenses valid indefinitely: There is no mandatory validity period at national level
  • Transmissions permitted: Licenses have once again become transferable
  • No limitations by share capital: Share capital transfers no longer cause automatic expiry

Important: Municipal regulations being prepared may establish new rules related to license validity and transferability. Consult your municipality’s council for updated information on local regulations.

Proof of activity

Holders of short-term rental registrations must prove they’re exercising the activity of operating the short-term rental. This proof can be provided by submitting a tax declaration through the electronic single desk.

The tax declaration can be one of the following options:

  • Last income tax return for IRS or IRC purposes
  • Last periodic VAT declaration with reference to short-term rental operation activity
  • If it’s an activity registered this year, the VAT declaration should be submitted or, if not available, the declaration of commencement of activity obtained from the Tax Authority

How to submit: Access the electronic single desk (ePortugal), on the page dedicated to short-term rentals, and select the option “Submit proof of short-term rental activity exercise”.


Condominiums and short-term rentals

The role of condominiums in issuing and maintaining short-term rental licenses has been reversed by current legislation. Condominiums have lost the veto power that Mais Habitação had granted them.

Note: During the transition period, some municipal councils may still be processing applications under previous rules. Check with your municipal council for current procedures.

Issuing new licenses

According to legislation in force, condominiums no longer have veto power over issuing new short-term rental licenses.

During the transition period, some municipal councils may still request condominium meeting minutes. We recommend verifying specific requirements with your local municipal council before submitting your application.

Exempt from this requirement are:

  • Properties whose short-term rental license application has been previously authorised by the same condominium, even if by other holders
  • Properties whose horizontal property title already authorises the installation of short-term rental

Cancellation of licenses

Legislation in force removes condominium power to cancel existing short-term rental licenses through a two-thirds vote.

Historical reference: Mais Habitação had allowed two-thirds of condominium owners to decide on license cancellation. This provision has been reversed by current legislation.

Other short-term rental obligations

Regardless of changes to condominium veto power, other obligations remain:

  • Permanent contact: If the condominium requests it, it will be necessary to provide other condominium owners with a telephone number for contact that’s available 24 hours. This number can be the property owner’s or a manager’s contact, such as a short-term rental management company.
  • Noise notice: It becomes mandatory for all short-term rentals installed in autonomous fractions of buildings constituted in horizontal property to display a notice informing guests of noise regulations.

The rest period during which it’s mandatory to avoid disturbing neighbours is between eleven at night and seven in the morning, according to Decree-Law No. 9/2007. Short-term rentals in buildings are required to inform guests of these good coexistence rules, and must display this information in a visible location.


Short-term rental taxation

Revoked taxes

Tax penalties for short-term rental license holders have been revoked. We maintain this section for informational purposes.

IMI on short-term rental establishments

Mais Habitação had amended the Municipal Property Tax code, fixing the age coefficient always at 1 for properties where short-term rental establishments are operating.

This penalty has been revoked. The age coefficient is once again calculated normally for all properties, including those allocated to short-term rentals.

Extraordinary contribution on short-term rentals (CEAL)

Mais Habitação created CEAL, an extraordinary contribution mainly levied on licensed short-term rentals in autonomous fractions or parts or divisions of urban buildings capable of independent use in urban contexts (mainly apartments in city buildings), throughout Portuguese territory, including the autonomous regions of the Azores and Madeira.

This contribution has been completely revoked. There is no extraordinary tax on short-term rentals.

Current tax situation

Currently, short-term rental owners:

  • Pay IMI calculated the same way as other properties
  • Don’t pay any extraordinary contribution
  • Have tax treatment equivalent to other properties

Future updates

This guide is updated regularly as:

  • Municipal regulations are published
  • Legislative changes are approved in Parliament and published in the Official Gazette
  • New procedures are established by competent bodies

GuestReady maintains communication with competent bodies to ensure this guide always reflects the most current information available.

Municipal regulations: As each municipality publishes its local regulation, this guide will be updated to include specific information about containment areas, sustainable growth areas, and any local restrictions or requirements.


Other questions about short-term rentals

If you have any specific questions about current short-term rental legislation, please contact us so we can help you.

If you’re wondering how you can continue to monetise your property, our team can also clarify this for you. GuestReady offers full support to its owners so they make decisions that benefit them most, and has a range of accommodation management services that seek to find the most profitable solutions for each owner and property.

Ready to maximise your property’s potential? Contact GuestReady today and let our team of experts guide you through the current legislative landscape whilst ensuring your short-term rental achieves optimal returns.



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