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As expected, on October 23, 2024, the Government published the new Local Accommodation legislation in Portugal, Decree-Law No. 76/2024. Moreover, this legislation introduces new guidelines and assigns additional responsibilities to municipalities. Now, municipalities can establish specific regulations tailored to local needs.

Key Points

1. Municipal Authority

Municipalities now have more freedom in decision-making regarding Local Accommodation, especially when there are more than 1,000 registered establishments. Consequently, the Municipal Assembly must deliberate, within 12 months of reaching this number, whether to exercise regulatory powers over the activity. Additionally, the municipality can appoint a “local accommodation ombudsman” to mediate conflicts between property owners, property managers, and the community.

2. Containment Areas and Sustainable Growth

Municipalities can now define “containment areas”, limiting the number of new Local Accommodation registrations in areas under high housing pressure. On the other hand, they can also create “sustainable growth areas”, where new accommodations may be allowed under additional conditions. These areas will be determined based on studies that evaluate the concentration and impact of Local Accommodation and must be reassessed every three years.

3. Rights of Condominium Owners

Condominium owners can now oppose the use of units as Local Accommodation through a resolution approved by two-thirds of the building’s ownership. As such, this decision applies to new registrations and aims to maintain a balance in property use and ensure the residents’ peace of mind.

4. Inspections and Penalties

The ASAE (Authority for Food and Economic Security) and municipalities have gained greater autonomy to directly inspect Local Accommodation establishments. As a result, they can cancel registrations in cases of rule violations, lack of mandatory insurance, or repeated disturbances that compromise residents’ quality of life.

5. License Expiry

The requirement for periodic license renewal has been eliminated. Now, Local Accommodation licenses are permanent, provided the establishment complies with all regulatory requirements and best practices outlined in the legislation.

6. License Transferability

Local Accommodation licenses are now transferable in cases of property sale or assignment, including to legal entities (companies). This way, operational continuity will be possible, even in commercial transactions.

Conclusion

With these changes, the new Local Accommodation legislation reflects an effort to balance economic and housing needs. At the same time, the new measures give municipalities more responsibility, thus providing them with better tools to regulate Local Accommodation supply according to each region and, in turn, promote more controlled and sustainable tourism development.

Do you own a Local Accommodation and need a management solution tailored to your needs? Contact us to find out how we can help optimize your experience!