How to obtain a vacation rental license - Portugal

In order to make the process of obtaining a vacation rental license as easy as possible, we have summarized what you need to do in this simple guide. 

• General information 
• What are the minimum requirements for your property to be eligible for a vacation rental license? 
• What do I need to obtain a license? 
• How much does the license cost? 
• How long does the process take?

General information

In order to rent out your property in Portugal for touristic purposes, you need a Portuguese touristic rental license known as an “AL Licence” (Licenca de Alojamento Local). This license allows you to legally rent residential accommodation for short-term tourism (less than 6 months). The Portuguese authorities, now carry out inspections in order to find out if properties being offered for rent, hold this license. The inspector's key objective is to ensure that properties meet the required safety standards. Before letting your property you must register a business activity with the Portuguese Tax Authorities. Business Activity Registration, known as the 'Inicio de Actividade', can be made online if you have resident status. Non-residents or their fiscal representatives must submit paper forms at the local ‘Finanças’ (tax office). It is important to note that all main vacation rental platforms require a license in order for you to list your property. Furthermore, the local councils in Porto and Lisbon will no longer grant new local accommodation licenses in specific areas due to changes in the Municipal Regulations. This suspension is under constant evaluation and is subject to change.

What are the minimum requirements for your property to be eligible for a vacation rental license?

Your property must…

• Be insured 
• Have a first-aid kit available on-site 
• Be connected to the public water and sewer network (or have an equivalent proprietary system) 
• Have hot and cold water 
• Have at least one window or balcony to provide ventilation 
• Have safety locks on the doors 
• Be furnished 
• Be clean and hygenic

What do I need to apply for a license?

There are 2 essential steps for registering your 'Alojamento Local':

1. The registration of a small business, a so-called 'actividade'. You can only complete the registration forms of the Alojamento Local with the proof issued by the tax authority. The 'actividade' can be requested online at the 'Portal das Finanças' or at any tax office. Registering on-site is advised as any questions can be answered there and then. It is important to note that the small business is registered for the provision of accommodation services (as defined in Section I, subclasses 55201 or 55204 of the Portuguese classification of economic activities). 
2. Registration as Alojamento Local can be done easily via the portal 'Balcão Único Eletrónico'. If a digital registration is not possible or you would like to carry out the report personally, you can also do this at many municipal administrations (Câmara Municipal). The paper form of the application can be found here.

There are various forms to complete and these are then submitted to the City Hall (Câmara). Below is a list of documents that may also be required. The list may vary depending on the Câmara to which the submission is made, some of these documents are obligatory, whilst others may be upon request.

• Passport 
• Fiscal Card or Papers Caderneta predial (official tax document relating to the property) Licença de habitação (Habitation Licence) 
• A copytitle of the deeds 
• A copy of electricity and gas certificates as well as a Health and Safety plan for the property Floor plans of the property 
• Certidão predial (ownership details)

How much does a rental license cost?

The license itself is free, and homeowners are urged to obtain one. Local authorities carry out inspections and failure to obtain the license can result in heavy fines from 2,500€ for individual homeowners and up to 40,000€ for companies. 

How long does the process take? 

It takes 10 to 20 business days to process an application. Once your application has been approved a 'Número de Alojamento Local' will be sent to your registered address. Once you have received your registration number, you will be able to list your property on vacation rental platforms.