(AL) establishments are those that provide temporary lodging services, namely to tourists, in exchange for payment.

There are four types of Local Accommodation:

• Villas: stand-alone, single-family properties;

• Apartments: self-contained units within a building or an independent section of an urban property;

• Guesthouses or Hostels: up to nine rooms and 30 guests;

• Rooms: up to three rooms located in the owner’s primary residence.

With the entry into force of Decree-Law 76/2024, the  bans on new registrations in coastal areas—previously introduced under the “Mais Habitação” law—have been lifted. However, municipalities have now been granted new powers to draft local regulations and manage Local Accommodation (AL).

IMPORTANT NOTICE! Municipalities may temporarily suspend the opening of new AL registrations while drafting their local regulations.

This suspension is temporary, initially set for six months and may be extended for an additional six months.

Municipal Councils have up to one year to finalise and publish their regulations.

For this reason, we strongly recommend checking with the local council (Câmara Municipal) where your property is located before starting your activity and proceeding with the two steps below.

1.STARTING ACTIVITY WITH TAX AUTHORITIES (FINANÇAS)
The first step is to access the Tax Portal (Portal das Finanças) and declare the start of your activity under the following economic activity codes:

• CAE 55201 – Furnished accommodation for tourists (Alojamento mobilado para turistas )

• CAE 55204 – Other short-term accommodation (Outros locais de alojamento de curta duração)

2. REGISTER WITH THE LOCAL COUNCIL (CÂMARA MUNICIPAL)

Next, you must register your AL with the Municipal Council (Câmara Municipal) where the property is located.
This is done through a procedure called “Prior Notification with Deadline” (Comunicação Prévia com Prazo), which must be addressed to the President of the relevant municipal council.

The registration is submitted via the Balcão Único Electrónico) – [Portuguese Public Services Portal) – which issues a registration number after the deadline period.

• 60 working days in standard cases

• 90 working days if the property is located in a containment zone

If the local council does not raise objections within this period, the registration number is officially granted.

This number is the only valid licence to operate and is essential for advertising the AL.

All advertising, commercial documentation, and promotional materials for AL establishments must always display the respective name or logo and registration number.

THE AL IDENTIFICATION PLAQUE IS MANDATORY!

For guesthouses, apartments, and rooms, it is mandatory to display an identification plaque near the entrance of the establishment. This plaque may be 10 x 10 cm in size.

Only in the case of hostels is it mandatory to display the plaque on the exterior of the building, next to the main entrance, and it must be 20 x 20 cm in size.

Villas located on mainland Portugal are the only type of local accommodation exempt from this requirement, in accordance with Decree-Law 62/2018.

YOU MUST TAKE OUT CIVIL LIABILITY INSURANCE FOR "ALOJAMENTO LOCAL"

Anyone who operates AL is jointly liable with guests for any damage caused by them to the building where the unit is located. Therefore, the law requires you to take out civil liability insurance for the provision of accommodation services. If there is no valid insurance, the registration will be cancelled. In addition, you must submit the insurance to the GOV.PT Platform. Find out more HERE 

DID YOU KNOW THAT THE ALEP ANNUAL FEE INCLUDES THE COMPULSORY INSURANCE? 

Find out more HERE

The law sets out a series of general requirements that all AL establishments must comply with, including:

• Being in good condition, with all facilities and equipment properly maintained and functioning;

• Providing both hot and cold running water;

• Having at least one window or balcony with direct access to the outside;

• Being furnished and equipped with appropriate furniture, appliances, and utensils;

• Having a system to block external light, ensuring adequate ventilation and air circulation;

• Doors equipped with a security system to guarantee guests’ privacy;

• Sanitary facilities fitted with systems that ensure privacy;

• Always maintain proper hygiene and cleanliness.

Fire Safety Requirements

In addition to the general standards, all AL establishments must comply with fire safety regulations as defined by applicable legislation.

If the capacity is 10 people or fewer, the property must have:

• A fire extinguisher and fire blanket accessible to guests;

• A first aid kit accessible to guests;

• The national emergency number (112) clearly displayed in a visible location.

If the capacity exceeds 10 people, the property must comply with the fire safety regulations set out in:

• Decree-Law (DL No. 220/2008)

• Ministerial Order (Portaria No. 1532/2008)

• Complaints Book ("Livro de Reclamações")
  AL establishments must have a physical complaints book, clearly visible on the premises, and must also be registered for the electronic complaints book.

• Information Book:
  It is also mandatory to provide an information book outlining how the establishment operates and its internal rules of use.
  This document must include the telephone contact of the person responsible for the property and must be available in Portuguese, English, and at least two other foreign languages.

DID YOU KNOW THAT ALEP OFFERS ALL MEMBERS AN EDITABLE INFORMATION BOOK IN FOUR LANGUAGES?
Find out more HERE>>

You must register with SIBA (Accommodation Bulletin Information System) and report the check-in and check-out of all guests who are not Portuguese nationals (Article 14 of Law No. 23/2007).
To comply, you must complete the accommodation bulletin within three working days from the date of arrival.

A) Running an AL business involves several tax obligations, such as:

• Issuing invoice-receipts via the Portuguese Tax Portal (Portal das Finanças) or issuing physical invoices;

• Paying VAT, through a periodic VAT return. Those whose annual income did not exceed €13,500 in the previous year are exempt from VAT;

• Submitting Form 30 (Income paid to non-residents). This is required if, for example, you advertise your property on an international platform such as Airbnb or Booking.com and pay them commission. This form must be submitted to the tax authorities by the second month after the payment is made to the foreign platform;

• If you advertise on an international website, you must also request the Form 21-RFI from the platform (this is a request for full or partial exemption from Portuguese withholding tax, under a double taxation treaty).
  If not submitted, you will be required to withhold 25% of the commission paid.

B) In addition to tax obligations and public liability insurance, it is important to be aware of other costs involved.

• Start-up expenses, such as:

  • Purchase of the AL identification plaque and fire extinguisher,

  • Complaints book,

  • Household items (bed linen, towels, and other essentials),

  • Furniture and appliances,

  • Renovation or improvement works.

• Ongoing expenses per stay, including:

  • Cleaning and laundry,

  • Toiletries and guest amenities,

  • Check-in support services,

  • Transport or travel expenses, among others.

So, be sure to calculate all potential costs carefully before starting an AL business.
We also strongly recommend consulting a tax advisor with expertise in this area.

DID YOU KNOW THAT ALEP HAS PARTNERSHIPS WITH VARIOUS TAX ADVISORS OFFERING SPECIAL RATES FOR MEMBERS?

Become a member HERE

INVEST IN DECORATION AND GOOD PHOTOGRAPHS BEFORE ADVERTISING YOUR AL

Photos are essential to make a good first impression on potential guests searching for AL online. Therefore, ensure your photos are of high quality and resolution, as they can influence customers’ booking decisions.

TIPS FOR TAKING GREAT PHOTOS OF YOUR LOCAL ACCOMMODATION:

• Add decorative elements, such as a vase with flowers or typical regional products, to create a cosy atmosphere.

• Capture the details that make your space unique.

• Take photos during the day to make the most of natural light, and use lamps where needed.

• Include images of the street or neighbourhood to showcase the location.

• Take photos from the corners of each room to make the space appear larger.

IMPROVE GUEST EXPERIENCE AND MAKE YOUR LISTING STAND OUT:

• Offer a flexible check-in time.

• Prepare a personalised Welcome Letter with information about the city, including recommendations, useful contacts, and a local map.

• Provide a Welcome Kit featuring local products.

• Ensure you have WiFi with a fast internet connection.

• Place books (in Portuguese and English) and board games in the living room.

• Consider providing universal power adapters.

• Supply personal hygiene products.

ALWAYS RESPOND TO ALL INFORMATION REQUESTS

It’s important to reply to enquiries as quickly as possible. Ideally, respond within two hours and no later than 24 hours.

Never ignore guest reviews, even if they are negative. Remember, these comments are visible to thousands of visitors and can influence their decision to book (or not) your accommodation.

Always respond politely and helpfully to all reviews. View criticism as an opportunity to understand guest dissatisfaction and offer a solution where possible.

Highlight the positive aspects of the guest experience before addressing any criticisms, and always thank guests for their feedback.