What is a Local Accommodation (AL) in Portugal
What Is Local Accommodation in Portugal – And When Do You Need a License?
Renting out your property in Portugal can be a great source of income. But before handing over the keys to your next guest, you need to know one thing: are you offering a local accommodation (“Alojamento Local” or AL) – or just a regular rental?
This isn’t just a technicality. The difference matters – legally and operationally. In this article, we break down the essentials: what qualifies as local accommodation, how it differs from traditional rentals, and when you’re required to register and comply with Portugal’s AL licensing rules.
What Counts as Local Accommodation (AL)?
Local accommodation is a legal regime in Portugal that allows individuals or companies to rent out properties to tourists or short-term visitors. It’s governed by Decree-Law 128/2014, of 29 August, as amended by Decree-Law 80-A/2023 and Decree-Law 76/2024.
Legal definition:
According to Article 3 of Decree-Law 128/2014:
“Establishments of local accommodation are those that provide temporary lodging services to tourists, against payment, and meet the requirements of this decree-law, provided they do not qualify as tourist developments.”
You’re operating under local accommodation if:
- You rent your property to tourists or short-term guests.
- The stays are temporary (days to a few weeks).
- You offer furnished space, often with cleaning, bedding, check-in/check-out services.
Local accommodation properties must be registered with the local municipality and receive a National Registry of Local Accommodation (RNAL) number before starting operations.
How Is It Different from Long-Term Rental?
The table below sums it up:
|
Feature
|
Local Accommodation (AL)
|
Long-Term Rental
|
|---|---|---|
|
Guest stay
|
Short-term, tourists
|
Long-term, residents
|
|
License required?
|
Yes, AL registration
|
No AL license needed
|
|
Legal regime
|
AL Laws (Decree-Law 128/2014)
|
Rental laws (NRAU, Civil Code)
|
|
Services provided
|
Yes – cleaning, check-in, etc.
|
No extra services
|
|
Risk
|
High if not licensed
|
Lower, if proper lease is signed
|
Offering short stays to tourists without an AL license is considered illegal and may result in penalties.
When Are You Required to Register as AL?
If your rental falls under these characteristics, you must register it as local accommodation:
- Stays are less than 30 days.
- The property is advertised on platforms like Airbnb, Booking.com, etc.
- Services like cleaning, linen changes, or check-in are provided.
- You don’t sign a formal rental contract under Portuguese rental law.
Even if you only rent occasionally, once your activity is for tourism purposes, you’re likely subject to AL rules.
Note: Some cities (Lisbon, Porto, etc.) have declared containment zones, restricting or suspending new AL registrations.
Can I Avoid AL Licensing by Using a Rental Contract?
Not really – and doing so could backfire. Authorities may reclassify your activity as AL if:
- You rent out to several different people over a short period.
- The same property is consistently used for short stays.
- You advertise publicly to tourists.
In some cases, using a standard rental contract might be allowed (e.g., renting to digital nomads for 3+ months), but one-off contracts won’t protect you if the activity is clearly tourism-focused.
What Happens If I Don’t Register My AL?
Operating a local accommodation without registration or license can lead to:
- Fines from the ASAE (Portuguese Economic and Food Safety Authority)
- Suspension of operations
- Denial of future AL applications for repeat offenders
Some municipalities now require AL registration to be renewed every 5 years – failure to comply can lead to automatic cancellation.
The Bottom Line
If you’re renting out your home in Portugal to tourists, even just occasionally, it’s crucial to know whether you fall under the local accommodation regime. Getting this wrong could result in serious legal trouble – but getting it right opens the door to a profitable venture.
This applies even if you only rent your home during the summer months or if you rent out just part of your house. As long as the stays are short-term and for tourists, the property must be registered as local accommodation.
Need help registering your AL or making sure you’re legally compliant? The team at Step Inside Legal can help you navigate the process, from A to Z.
Email us at info@stepinsidelegal.com
Or book a consultation directly to speak with one of our corporate law specialists.
