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 law has undergone some changes with the publication of the Law nº62 from 22nd August 2018, Ordinance No. 262/2020 from 6th of November 2020, that came into force on the 4th of February 2021 and amended by the new Government’s Decree-Law 76/2024 which came into effect on 1^st of November 2024 (certain parts will come into effect on the 21^st of January 2025).

The latest AL law amends and adds 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 people 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: 

1. House = Villa, town house, family house 

2. Apartment = Self-sufficient partition of a building 

3. Guest house or Hostel = Property where the rooms are the units to be let 

4. Room = maximum of three “units” in the property

Local lodging properties must fulfil the following requirements: 

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

2. To be connected to the water mains or alternatively have a private, correctly licensed, water supply system. 

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

4. To have running water supply, both cold and hot. 

The lodging units must: 

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

2. Be furnished and equipped accordingly. 

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

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

5. Fire extinguisher and sign

6. Fire blanket and sign

7. First aid box and sign

In apartments, houses and rooms, there must be at least one toilet for every four rooms and cumulatively a maximum of 10 users.

In accommodation establishments, the common sanitary facilities, which are not separated by gender, must have autonomous toilets separated by doors with security systems that allow privacy.

In accommodation establishments, there is at least one toilet, a washbasin, and a shower for every six users who are sharing common sanitary facilities.

The people renting the properties, whether they are the owners renting directly or a rental company, must provide to their client’s information on the regulations in the rented property such as the use of swimming pools, lifts, common areas, reception working hours, services provided, etc. 

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. You can do this by registering as a sole trader, or through a company. Please note that if you are not a resident here you will need to have a fiscal representative, although the requirement to have a fiscal representative was abolished (for EU citizens) it is still necessary if you have any income in Portugal. 

The registration of rental properties at the local Câmara, is done at your local Câmara’s “Balcão Único”, (addresses you can find here, if you click on your Distrito ou ilha (district) and Município (town) and then press VER here, and you will find the link to the address at the bottom of the page.

You should bring the following documents:  

1. A document proving the legitimacy of the person requesting, i.e., owner, representative of the owner, Management Company (ID document).

2. A certificate of compliance issued by the owner, stating that the electricity and gas and water heater installations are according to the law in force. 

3. Certificate of Início de Actividade. This is a document proving that you are registered, with Finanças, for business.

4. Property rates document “Caderneta predial urbana”. 

The requirement, stamped by the local Câmara is a valid document to open to public. 

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

In case any of the requirements are not met, the registration is cancelled, and the applicant must return the stamped requirement in their possession. 

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.

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.

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

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

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

3. 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. 

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

Fire safety requirements vary depending on the kind of property concerned; however, there is a minimum standard as required by the Bombeiros, which is one fire blanket in the kitchen by the oven and one large fire extinguisher or two medium ones in each floor of a property to rent. The fire brigade also advises that in a guesthouse or small Bed and Breakfast establishment, there should be a smaller fire extinguisher in each room. 

Those properties with the capacity for more than 50 people must have, besides the requirements above, a fire safety system according to a project drawn and presented with the requirement and a mobile or fixed telephone with an external line. 

Some city hall offices (Câmaras) may also request a “Ficha de Segurança de Incêndio” (fire safety certificate). 

Access for disabled users

1. 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.

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

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
The rental properties must have an identification plate outside the property and near the main entrance, an informative board.  This plate will be transparent and sized 20cm long by 20cm tall.  This is mandatory. When the entrance to the establishment is inside a building, it is possible to choose a plate of the same model and smaller size, with the following characteristics:

1. Made of 5mm thick, transparent, extruded, and polished crystal acrylic material, with a dimension of 100mm x 100mm.

2. The letters "A" and "L" must be entered in capital letters, with a space between the two, in Arial type with 100pt, in dark blue colour (pantone 280).

3. Below the letters provided for in the preceding paragraph, the expression ‘(ALOJAMENTO LOCAL)’ must be inscribed in brackets, which must be engraved in capital letters, in Arial type with 13 pt, in the same color as the previous ones.

4. Fixing the plate should preferably be carried out using stainless steel screws in each corner, whose head should be about 5 mm in diameter or, alternatively, through other means of fixing the corners, and, in any case, the plate is 10 mm away from the wall.

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.

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.

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.

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
AL establishments have to provide a reception service (check-in and check-out) and contain information for users, which can be carried out in person or not in person, namely by telephone or electronically.  Accommodation establishments, including hostels, provide means of communication with the reception service, as well as an indication of the national emergency number and contact details for the operator. 

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 . You need to register your property first off all and get a log in and password, this way you have access to the lodging bulletins online at any time. The manual can be seen here: https://siba.ssi.gov.pt/files/SIBA_Manual_de_Utilizador_v1_ingles-1.pdf

Breakfast Service
Local accommodation establishments that provide breakfast must comply with the rules of hygiene and food safety under the terms of the applicable legislation.

Accommodation establishments and rooms that use the name Bed & Breakfast, under the terms of paragraph 4 of article 17 of Decree-Law no. 128/2014, of 29 August, in its current wording, they must always provide breakfast service, in addition to the accommodation service.

Sustainability Conditions
Regarding environmental sustainability conditions, AL establishments must adopt and implement practices that promote the efficient consumption of water and energy (when not required by law), as well as a policy of information on sustainable tourism practices by users. In addition, they must adopt exclusively detergents and biodegradable products and provide equipment for the separation of solid urban waste, as well as ensuring the continuous training of employees on good environmental practices and work standards and have environmental certification or environmental quality seal assigned by an entity of national or international recognition.

Fines
Parliament approved the increase in fines 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 through the Balcão Único Eletrónico. 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 declaration or request a Complaints Book you can click on the here.