The “Mais Habitação” (More Housing) programme brought significant changes to the Local Accommodation (AL) regime in Portugal. We highlight the main changes affecting both existing establishments and new registrations, as set out in Decree-Law No. 128/2014, as amended by Law No. 56/2023:
Duration and renewal
- Local Accommodation registrations will now last for 5 years, renewable for identical periods. The first renewal is counted from the date the title for opening to the public was issued.
- Future renewals will require an express resolution of the competent municipal council.
Review of AL registrations already issued
- Registrations already issued remain valid until they are reviewed in 2030.
- After the review, if it is decided to maintain the registration, it will last for 5 years, renewable for equal periods.
- AL establishments given as security for loan agreements up to 16 February 2023, whose debts have not been fully repaid by 31 December 2029, will only be reviewed after the debt has been fully repaid.
Suspension of new AL registrations
- Except in low population density municipalities on the mainland, low-density parishes (even in high-density municipalities) and the autonomous regions, new AL registrations for apartments and guesthouse establishments located in autonomous units are suspended.
- Registrations issued up to 7 October 2023 will be reviewed in 2030 and will then become renewable for 5 years from that date.
Expiry of inactive registrations and other situations
- AL registration holders must prove that the activity is ongoing, or the registration will be cancelled, except for operation in the owner’s primary and permanent residence for up to 120 days a year.
- The transfer of the property will result in the registration lapsing, except in cases of succession. For legal entities, the transfer of the share capital will result in the registration lapsing.
Non-transferability of the AL registration
- The local accommodation registration/licence becomes non-transferable, even when held or owned by a legal entity.
For more information on these changes and their legal impact, please get in touch. We are here to provide specialised and up-to-date legal guidance.
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