I have been a fan of AirBnB for years. The company is who I think of when I think of short term accommodations. They are not the only ones who will be affected by the changes being put in place by the Portuguese government to address the artificially scarce housing market in Portugal with the new “Mais Habitação,” program.
What Is The Mais Habitação Program?
The program, approved on February 16, aims to respond to the country’s housing crisis. Among the measures proposed, there are new rules for local accommodation licenses, which affect the popular platform Airbnb and other short-term rentals. I will explain how the changes will affect property owners running short term rentals and tourists looking for places to stay in an accommodations market that is already over priced.
In Which Cases Can Condominiums Terminate Alojamento Local Licenses?
The “Mais Habitação” program proposes several changes to the regulations for local accommodation licenses (known as Alojamento Local in Portuguese.)
The most significant change is the power given to condominiums to terminate local accommodation licenses issued without their approval.
Here is an example situation:
You own an apartment in a condominium. You apply for an Alojamento Local license to rent your property short term on Airbnb or other platforms. If your neighbors/other owners in your building get upset, they have the power to terminate that license if it was granted without the knowledge and approval of the condo.
What do you think about these changes to Alojamento Local. Let me know in the comments and make sure to include if you are a property owner running an alojamento local, a neighbor of an AirBnB property, or a tourist coming to visit Portugal.
The Government Has Not Provided Much More Information
The government has not provided many details on this. This is a controversial topic, as it may affect the income of many property owners who have invested in short-term rentals in recent years.
However, it could improve the quality of life for those who live in shared buildings and are tired of the constant flow of tourists in their buildings.
The idea is to avoid overcrowding, bring back affordable housing for locals, and to promote a fair distribution of tourism throughout the country.
Lisbon AirBnB Stats for 2022
- 19,690 AirBnBs in Lisbon Alone
- 76% Are Entire Apartment Lets
- 73% Have More Than One Listing
- 92 Nights Booked Per Property Per Year
- Average Nightly Price €141
- Average AirBnB Income Per year €11,831
- Average Minimum Wage in Portugal €10,640
What You Need To Know As An Alojamento Local Owner in Portugal
If you currently run an AirBnB type property in Portugal, these are the things you need to know:
- The program proposes a suspension on the issuance of new local accommodation licenses, except in rural areas. No Alojamento Local licenses will be granted in cities or suburbs.
- Existing licenses will be subject to re-evaluation in 2030.
- New licenses must be renewed every five years.
- If you convert your Alojamento Local to a long term rental for residents, there will be tax incentives.
The government has not spelled out all the particulars of this program, but the above should give you a good idea as to what to expect.
What Does This Mean for Airbnb in Portugal?
Alojamento Local is a popular option for short-term rentals in Portugal. Many tourists choose this type of accommodation over hotels.
The new regulations proposed in the “Mais Habitação” program will affect Airbnb hosts.
They may need to adapt to the new rules or risk losing their licenses.
The power given to condominiums to terminate AL licenses without approval will also make it more difficult for property owners to obtain a license, especially in shared buildings.
However, the changes proposed by the government aim to create a more sustainable and balanced tourism industry, focusing on affordable housing and protection for families.
If successful, the program may improve the quality of life for locals and promote a more responsible tourism industry in Portugal.
When Should We Expect More News About the Mais Habitacao Program?
The “Mais Habitação” program is now under public discussion.
The Housing Minister has called for the National Housing Council to meet on March 3 to hear the opinions of all entities in the sector.
The proposals for the program are due to the Council of Ministers for final approval on March 16.
Some measures will still need to go through the Assembly of the Republic.
The new rules proposed in the “Mais Habitação” program will affect Airbnb hosts and other property owners renting their properties for short terms in Portugal.
Condominiums may now have the power to terminate local accommodation licenses issued without their approval.
In addition, new licenses will be subject to stricter rules.
The changes aim to promote a more sustainable and responsible tourism industry, focusing on affordable housing and family protection.
Guess I’ll have to update my article on how to start an Alojamento Local in Portugal.