Short Term Rentals – “+ Habitação” becomes history

24/10/2024

Yesterday, DL 76/2024 was published in the Diário da República, effective from November 1, 2024. This Decree Law revokes most of the changes regarding Local Accommodation resulting from the “+ Housing” package of 2023, which, as expected, was a complete failure in achieving the anticipated results while generating enormous risk and instability in the Local Accommodation sector. The changes listed below are added to the previous revocation of CEAL, so we can affirm that everything relevant regarding Local Accommodation has been reverted.

Thus, we highlight the most immediate results of these changes:

– Article 19 of the “+ Housing” is revoked, so AL registrations will be allowed again from November 1 (except for the existing Containment Zones in Lisbon – Ajuda, Alcântara, Areeiro, Arroios, Av. Novas, Beato, Belém, Campo de Ourique, Campolide, Estrela, Misericórdia, Parque das Nações, Penha de França, Santa Maria Maior, Santo António, and São Vicente – and in Ericeira).

– AL registrations are again transferable under any circumstances (as long as they are outside Containment Zones).

– The 120-day annual limit for AL in Own and Permanent Housing is removed.

– The unanimous approval of the Condominium remains mandatory in the case of Hostels in properties under horizontal property regime.

– The Condominium only has the right to request the closure of an AL by majority approval of the Condominium Owners in case of proven disturbance, with the Municipal Council responsible for analysis and decision, and the registration holder given the right to defense.

– The Municipal Council can, at any time, require proof of the mandatory AL insurance within 3 days.

– Municipalities can create Containment Zones (areas with excess AL) and Sustainable Growth Areas (monitoring areas to avoid excess AL), which can limit the registration of new ALs.

– AL in the Room regime can only be registered in properties with Residential use.

– AL in the Apartment or House regime can be installed in properties with any type of use (thus nullifying the “famous” ruling that prevented the registration of AL in properties with commercial use).

– In the case of Lodging Establishments, the Municipality can require that the use be different from residential.

– The impediment to AL registration can be stated in the initial title of the building or in the Condominium regulations. This can be changed at any time by a 2/3 majority of the Condominium Owners, preventing new registrations but without impact on existing registrations.

– In Containment Zones, license transfer is allowed in exceptional situations: inheritance, divorce, transfer to spouse or heirs in direct succession line.

– Municipalities with more than 1,000 registered ALs have a one-year period to create an AL Regulation; otherwise, national rules apply.

In summary, the legal situation of the Local Accommodation sector has generally returned to the rules prior to the “+ Housing”, and it is also relevant to clarify that AL can be exercised in properties with other legal uses besides Residential.

We draw attention to the fact that the opening of new registrations outside Containment Zones from November 1 does not mean that new Containment Zones will not emerge, as Municipalities will develop AL regulations and it is likely that new Containment Zones will be created (in Porto, for example), so this may be a window of opportunity to register in RNAL.

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