If you’re an expat who owns a holiday rental property in Portugal, urgent action may be required to keep your local accommodation (Alojamento Local or AL) license active. Portuguese city councils are set to begin cancelling as many as 70,000 AL registrations starting next week due to missing documentation—specifically, proof of civil liability insurance.
Out of 124,000 registered short-term rental properties in Portugal, only 50,000 have submitted this mandatory document, according to a report by Diário de Notícias. Without it, your AL license may be considered invalid, regardless of whether the property is in operation.
The Portuguese Local Accommodation Association (ALEP) is urging all property owners—particularly expats who may not be actively monitoring local regulations—to ensure their paperwork is up to date. In Lisbon alone, over 50% of the 19,000 local accommodations have yet to provide the necessary proof of activity.
ALEP’s president, Eduardo Miranda, warns that many of the at-risk registrations may be “phantom licenses” from properties no longer in use. However, up to 20,000 active rentals could be mistakenly caught in the cancellation wave if owners do not act quickly.
“Given the number of properties still pending verification, we estimate around 70,000 registrations could be cancelled imminently,” said Miranda.
For expats managing properties remotely or through third parties, now is the time to double-check that all required documents—particularly valid civil liability insurance—have been submitted to local authorities.
Failing to comply could result in losing your AL license, potentially affecting your rental income, property valuation, and legal status as a landlord in Portugal
❓ Frequently Asked Questions (FAQ)
1. What is an AL license in Portugal?
An AL (Alojamento Local) license is a legal requirement for operating short-term rental properties in Portugal. It applies to vacation rentals, guesthouses, and similar accommodations offered to tourists.
2. Why are AL licenses being cancelled?
Portuguese authorities are cancelling licenses that do not have up-to-date documentation—specifically, proof of valid civil liability insurance. This requirement ensures the property has coverage in case of damage or injury involving guests.
3. How many licenses are affected?
Up to 70,000 AL licenses are at risk of cancellation, according to the Portuguese Local Accommodation Association (ALEP). This includes potentially 20,000 active rentals.
4. Who is most at risk?
Expats and foreign property owners who manage rentals remotely or through agents may be especially vulnerable if they are unaware of recent changes in documentation requirements.
5. What document do I need to submit?
You must provide proof of civil liability insurance that covers your rental property. This insurance is mandatory under Portuguese law for all local accommodation units.
6. Where and how do I submit this documentation?
You should contact your local city council (Câmara Municipal) or the relevant municipal office where your property is registered. Submissions may be accepted online or in person, depending on the council’s procedures.
7. What happens if my license is cancelled?
If your AL license is revoked, your property may no longer be legally rented as a short-term rental. This could impact your income, affect your property’s valuation, and potentially lead to fines or other penalties.
8. What should I do right now?
- Verify that your AL registration is active and up to date.
- Confirm that valid civil liability insurance is in place.
- Submit proof of insurance to your local authorities immediately.
- If you use a property manager or agent, ensure they have handled this on your behalf.
9. Can I reapply if my license is cancelled?
This depends on local housing laws and zoning restrictions. Some municipalities, such as Lisbon, have limitations on issuing new AL licenses, so reapplying may not be straightforward.
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