Local accommodation has been a hot topic in the debate on housing, tourism, and urban planning. With the growth of this type of activity, the Portuguese government has implemented several legislative changes to regulate the sector, increase transparency, and mitigate negative impacts on urban centers. In 2023 and 2024, new rules were introduced under the "Mais habitação" (More Housing) program, with stricter obligations for those who want to use a property as local accommodation.
What is local accommodation?
Local accommodation refers to establishments that offer temporary accommodation services, mostly to tourists, for a fee, provided that they do not qualify as tourist resorts, i.e., it is a form of of accommodation that falls between traditional lodging and long-term rentals. This includes:
- Mandatory registration: any property used for accommodation purposes must be registered in the National Local Accommodation Register.
- License and prior notification requirements: Prior notification must be sent to the relevant municipal council, containing a series of mandatory elements such as the owner's identification and use of the property, among others.
- Mandatory Renewal and Validity of Registration: local accommodation registration is valid for five years, after which it must be renewed, otherwise it will be canceled.
- Mandatory Display and Identity: All local accommodations must display an identification sign with a visible registration number and ensure hygiene, safety, and accessibility conditions.
Enforcement and Penalties
The Food and Economic Safety Authority and municipalities have the power to inspect, meaning that operating local accommodation without a valid registration can result in significant fines, as well as the closure of the business.
Local accommodation remains a legal and lucrative economic activity, but it is increasingly regulated and subject to strict obligations. The new measures reflect the state's attempt to balance the interests of tourism with the housing rights of residents.