Everything You Need to Know About Short-Term Rentals
For years, Portugal has been a particularly attractive destination for investors in the short-term rental sector, mainly through platforms like Airbnb and Booking.com. With rising real estate prices, increased tourism and pressure from locals – the government has begun to impose restrictions. So is it still possible to invest in an apartment intended for tourist rental? And if so – under what conditions?
Portugal and Airbnb – a success story (and then a restriction)
Over the past decade, Portugal, and especially Lisbon and Porto, have enjoyed an unprecedented tourism boom. Thousands of apartments have been converted into vacation rentals, which has generated handsome profits for investors – but has also caused a shortage of residential apartments for residents.
As a result, many cities have begun to regulate the sector:
- Special licenses are required to operate an apartment as a lodging unit (AL – Alojamento Local).
- In some areas, especially in Lisbon and the center of Porto, restricted zones have been declared where new licenses cannot be issued.
- There is strict adherence to safety, insurance, reporting to authorities and more standards.
Is it still possible to issue a license?
Yes – but not everywhere, and In any property. Today, to operate an apartment as a guest house, the following are required:
- Approval from the municipality.
- Checking the building rights and zoning of the property.
- Approval from the committee or tenants (in certain buildings).
- Compliance with safety regulations, insurance and registration in databases.
Existing licenses are still valid, but sometimes cannot be transferred to a new buyer – an important point when purchasing an apartment with an active AL.
Alternatives: medium and long-term rentals
In recent years, the demand for medium-term rentals (3–12 months) has increased, mainly from:
- Digital nomads.
- Foreign students.
- Business people and relocation.
Such rentals are less dependent on regulation, guarantee more stable occupancy, and are sometimes even more affordable – without the need for daily guest management.
What is important to check before purchasing?
- Is there an active AL license?
- Can it be renewed or transferred?
- What are the restrictions that apply to the street or The neighborhood?
- Are there alternative rental solutions?
At I-Portugal, we can provide you with accurate and up-to-date information about each property, including regulatory aspects, yield forecasts, and the degree of risk in purchasing an apartment for tourist use.
In conclusion
Airbnb in Portugal is still alive and kicking – but it is no longer the “Wild West”. Those who act carefully, with regulatory understanding and proper guidance, can enjoy high returns. Those who prefer stability can consider medium-term rentals, which have also become very popular in recent years.