In a significant shift in local housing policy, the municipal councils of Albufeira, Lagos, Olhão, Portimão, and Silves have recently reopened applications for Alojamento Local (AL) licences for apartments. Previously, only property owners in the Aljezur and Vila do Bispo councils were able to apply, as these areas are characterised by lower population density.
This change marks a key development in the regulation of short-term rental properties in the Algarve region, providing fresh opportunities for property owners and investors in one of Portugal’s most popular tourist destinations.
Rental Valley AL application service
For those looking to apply for an AL licence, Rental Valley is offering a special discounted rate for our application service, now available for just €250 (excl. IVA) instead of the regular price of €300,-. (Please note that this service is available exclusively as an add-on to our rental management packages)
With Rental Valley’s expert guidance, we’ll ensure that your application meets all the necessary legal requirements and is processed efficiently, so you can focus on what matters most – managing your property and generating rental income.
Contact us today to learn more about our rental management packages and take advantage of this limited-time offer for a seamless AL application experience!
Understanding the Alojamento Local License
Alojamento Local (AL) is the term used in Portugal for short-term rentals, such as those listed on platforms like Airbnb and Booking.com. The Alojamento Local licence allows property owners to rent out their properties to tourists, provided they meet specific requirements set by local authorities.
Over the past few years, municipalities in popular tourist areas like the Algarve have placed limits on the issuance of AL licences to control the impact on local communities, prevent the displacement of residents, and ensure that the rental properties adhere to safety and quality standards. However, with the new changes, the four municipalities of Albufeira, Lagos, Portimão, and Silves are once again accepting applications for AL licences for apartments, albeit with certain conditions.
The Key Changes and How They Affect You
1. Reopening of AL License Applications for Apartments
Previously, many of these municipalities had imposed a moratorium on new AL licences for apartments in order to regulate the rapid expansion of short-term rentals, which was creating an imbalance in local housing markets. However, the recent decision to open the process again marks a new opportunity for property owners looking to capitalise on tourism in the Algarve.
2. Specific Conditions for Apartments
While the new policy allows for the issuance of AL licences for apartments, there are specific conditions attached. The most important one is that applications will only be accepted for apartments in buildings that are legally registered for residential use. The property must be situated in a designated area where short-term rentals are permitted, which can vary depending on the municipality.
For instance, in high-demand areas like Albufeira and Portimão, there may be additional scrutiny on whether the building is part of a larger residential complex or if the property is located in an area of tourism infrastructure, such as near beaches, cultural sites, or entertainment hubs. In Silves owners will need specific condominium approval for example, which is not the case in the other re-opened councils.
3. Tourism Impact Assessment
In some areas, municipalities will require a tourism impact assessment, particularly for new applications in residential areas where there may be concerns about over-tourism or disruption to local communities. This is especially relevant in cities like Lagos, where historical preservation is a priority. The assessment helps ensure that new short-term rentals do not disproportionately affect local residents or alter the fabric of the neighbourhood.
4. Cap on New Licences
While these municipalities are once again accepting AL licence applications, they may still impose caps on the number of licences issued within specific zones or neighbourhoods. The goal here is to prevent the over-saturation of the market, which can lead to increased rental prices for long-term residents and a decrease in the overall quality of life for locals.
