Latest Changes to Local Accommodation

On October 23, 2024, Decree-Law No. 76/2024 was published, amending the legal framework applicable to the operation of local accommodation (AL) in Portugal. 

With these changes, the Government aimed to establish a balance between local accommodation activities and the preservation of residential environments. 

As a result, there was a rollback of the More Housing Program (Law No. 56/2023), which was achieved through the elimination of most of the restrictions previously imposed on AL activities.

The changes came into effect on November 1, 2024, with the main modifications highlighted below:

• End of the Suspension on New Registrations: The suspension of new registrations for local accommodation establishments (AL) in the forms of apartments and hostels located in autonomous units in certain areas of the country has been lifted. However, municipalities retain autonomy to establish specific rules regarding the promotion of new registrations, as well as to suspend registrations as deemed necessary.

• Existing Registrations: The review of existing AL registrations has been revoked. 

• End of Condominium Decisions for Autonomous Units: The requirement to obtain a condominium decision to register a new AL in autonomous units of buildings under horizontal property ownership has been revoked. 

• Transferability: AL registrations can once again be transferred, except in cases where municipalities impose restrictions on such transfers. 

• Duration of Registrations: AL registrations now have unlimited duration, and renewals are no longer required. 

• Cancellation of Registrations: It is permitted to cancel an AL registration in establishments located in containment areas if it is determined that urban lease contracts for permanent housing were signed for the property within two years prior to the submission of the prior communication request with a deadline, in violation of the applicable municipal regulation. In buildings under horizontal property ownership, a decision approved by more than 50% of the building's fractional ownership is once again required. This decision must be based on verified acts of disturbance to the normal use of the building or causing inconvenience that affects the residents’ rest. The condominium assembly's resolution to terminate the AL registration must stipulate a validity period not exceeding five years. The right to a prior hearing has been reinstated in cases of AL registration cancellations. 
• Usage: The installation and operation of AL establishments in autonomous units do not constitute a use different from the intended purpose, as provided in subparagraph (c) of paragraph 2 of Article 1422 of the Civil Code (which prohibits condominium owners from assigning a different use to the autonomous unit than its intended purpose).

• New Deadline for Opposition: Following an AL registration request, the municipality now has a maximum period of 60 days (instead of 10) to oppose the AL registration, or a maximum of 90 days for registration requests in containment areas. 

Real Estate Law Department

Dr. Paulo Ramalho Pereira