If you’ve been interested in renting out an apartment in Portugal, there’s great news: recent changes to the Alojamento Local (AL) licensing rules now make it possible for apartment owners to legally rent their properties for short-term stays.
Here’s a breakdown of what this change means and how it opens new opportunities for apartment rentals in popular areas like the Algarve.
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What’s Changed in the AL Licensing Rules?
- New Permission for Apartments: As of November 1, 2024, Portuguese law has been updated to allow apartment owners to apply for Alojamento Local (AL) licenses. Previously, AL licenses were restricted in certain buildings and locations, limiting options for short-term rentals. With this change, apartment owners have new flexibility to rent out their properties on a short-term basis legally.
- Local Regulations Still Apply: While the new law opens doors for apartment rentals, local councils now have more control over AL activities in their jurisdictions. This means that the specific requirements or conditions for obtaining an AL license may vary depending on the municipality. Consulting with local authorities or a real estate expert is recommended to understand any local guidelines that might apply.
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Why This Matters for Apartment Owners
- Greater Flexibility for Rental Income: This change means apartment owners can now tap into Portugal’s thriving short-term rental market, especially in high-demand areas like the Algarve. Whether you’re interested in renting to tourists or business travelers, an AL license allows you to legally operate and maximize rental income.
- The Rise of the Algarve Rental Market: The Algarve, with its sunny climate and stunning coastline, is one of Portugal’s most popular tourist destinations. By securing an AL license, apartment owners in Tavira and other Algarve locations can attract short-term renters looking for a coastal getaway, particularly during peak travel seasons.
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How to Apply for an AL License for Your Apartment
- Meet Safety and Comfort Standards: To qualify for an AL license, your apartment must meet certain safety standards. This includes fire safety measures like smoke detectors and fire extinguishers, as well as essential amenities that ensure a comfortable guest experience.
- Submit an Application: Applications are typically submitted to the local council, and the approval process can take a few weeks. Since requirements may differ by municipality, it’s best to consult local guidelines or work with a legal adviser to ensure your application is complete and compliant.
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Additional Considerations for Apartment Rentals
- Income Tax on Rentals: Rental income is subject to tax in Portugal, even if you’re a non-resident. Be aware that income from short-term rentals may require VAT registration if your rental income exceeds certain thresholds.
- Property Management and Maintenance: For those renting out apartments on a short-term basis, hiring a property management company can make the process smoother, especially if you live outside Portugal. Property managers can handle check-ins, cleaning, and maintenance, keeping your apartment ready for guests.
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Ready to Take Advantage of the New AL Licensing Rules?
This new regulation is a fantastic opportunity for apartment owners looking to tap into the short-term rental market in Portugal.
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If you’re interested in renting out an apartment in the Algarve or need assistance navigating the licensing process, I’m here to help! Reach out today to learn more about how this change could benefit you and to explore the best strategies for maximizing rental potential in Tavira and beyond.
Set up a meeting with us. All you will need is to fill the Calendly appointment on the bottom left of our website and we will be waiting for you in this side of the screen. See you soon!
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Isabel Romano | Lemon Tree Homes
+ 351 933263788 | AMI 23350 | hello@lemontreehomes.pt
Don’t forget to have a look at our youtube channel!!! You may find some more useful information.
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