Positive rules and regulations for Holiday Rentals in the algarve!

The Portuguese government has introduced key changes to local accommodation (AL) regulations, providing much-needed relief to property owners and boosting the real estate market. These revisions reverse some restrictive measures from the previous administration, making properties more attractive for holiday rentals to both buyers and sellers.

Minister of the Presidency, António Leitão Amaro, recently confirmed the government's commitment to addressing concerns in the real estate sector. After a Council of Ministers meeting, Leitão Amaro noted that the new rules "correct some mistakes" of the past legislation, which had caused friction in the industry.

One major change is the reinstatement of transferable rental licenses, which had been restricted by the previous government. This shift brings back flexibility for property owners when selling, inheriting, or transferring ownership, benefiting both sellers and buyers.

Another important revision is the removal of the five-year expiration on AL-licenses, providing more security for property owners.

Additionally, the government will empower local municipalities to set their own AL rules in high-demand areas. This allows for more tailored approaches that reflect regional needs. With the current ban on new AL licenses for properties in “propriedade horizontal” status, this decentralization could reopen the opportunity for new licenses.