Lisbon’s New AL Rules: What Owners and Investors Need to Know
Lisbon has entered a new era of regulation for Alojamento Local (AL). Following approval by the Municipal Assembly, the new Municipal Regulation on Local Accommodation (RMAL) is now in effect. This reform represents a major shift in how the city balances its vibrant tourism sector with the essential housing rights of its residents.
For property owners, investors, and relocation professionals, these changes are not merely administrative - they fundamentally reshape the licensing landscape and the future of short-term rentals in the Portuguese capital.
A New Strategy*: Granular Monitoring
The city has moved away from broad, city-wide assumptions. Instead, the municipality now monitors housing pressure at a "micro" level, focusing on specific parishes (freguesias) and even individual neighborhoods (bairros).
This data-driven approach means that the "Containment Zones"- areas where new licenses are restricted - are now defined by a precise ratio: the number of AL units compared to the number of permanent residential homes. If the percentage of ALs in a specific neighborhood climbs too high, restrictions trigger automatically.
The Numbers Have Changed: New Thresholds for Containment
The most impactful change in this regulation is the significant lowering of the "saturation" thresholds. Essentially, the city has halved the limit of allowed ALs in many areas:
1. Absolute Containment (New Limit: 10%)
Previously, an area was only "closed" to new licenses if ALs made up 20% of the housing stock. That limit has now been slashed to 10%.
- The Impact: As a result, several of Lisbon’s most iconic central districts are now strictly under Absolute Containment.
This includes Santa Maria Maior, Misericórdia, Santo António, São Vicente, Arroios, and Estrela. In these zones, new AL registrations are, as general rule, no longer permitted, subject to limited exceptions.
2. Relative Containment (New Limit: 5%)
Areas where ALs represent between 5% and 10% of housing are now considered zones of Relative Containment.
- The Impact: In these neighborhoods (such as parts of Avenidas Novas), new licenses are exceptionally difficult to obtain and are subject to strict municipal evaluation and specific conditions.
3. The City-Wide "Kill Switch"
The regulation introduces a safeguard for the entire city: if the total ratio of AL units across all of Lisbon reaches 10%, the entire municipality will automatically be declared an Absolute Containment area.
The "Quarto" (Room) Modality: A Small Window of Opportunity
While the rules for entire apartments have tightened, the municipality has introduced a specific exception to encourage a more integrated form of tourism.
You may now register a "Quarto" (Room) modality under very specific conditions:
- It must be the owner’s primary and permanent residence.
- The property must be located in a Relative Containment area (not Absolute).
- The property must be at least a T2 (two-bedroom) typology or larger.
This measure is intended to help local residents generate supplementary income without removing entire apartments from the long-term rental market.
Key Restrictions and Operational Changes
Beyond zoning, the new regulation introduces several operational "roadblocks" that investors must be aware of:
- Public Auctions: Properties purchased through municipal public auctions are now strictly prohibited from receiving exceptional AL authorizations.
- No "Mini-Hotels": There are new restrictions on offering complementary commercial services (like small shops or restaurant services) inside AL establishments.
- Transferability Limits: In containment zones, an AL license is generally non-transferable. If you sell the property, the license does not go to the buyer (except in specific legal cases like inheritance). This effectively means the "life" of many licenses ends with the current owner.
Why Is This Happening Now?
This reform is the local implementation of a broader national trend. Following the "Mais Habitação" (More Housing) program and subsequent legislative updates (such as Decree-Law 76/2024), Portuguese municipalities have been granted much greater autonomy.
Lisbon is using this power to align its tourism strategy with the Lisbon Municipal Housing Charter. The goal is clear: to ensure that the city remains affordable and livable for locals, even as it remains a top global destination.
Summary Table: Old vs. New
| Feature | Old Regulation (2019) | New Regulation (Current) |
|---|---|---|
| Absolute Containment | > 20% AL Ratio | > 10% AL Ratio |
| Relative Containment | 10% - 20% AL Ratio | 5% - 10% AL Ratio |
| Monitoring Unit | Parish Level | Parish & Neighborhood Level |
| Room Rentals (Quartos) | Restricted | Permitted in T2+ (Primary Homes only) |
| City-Wide Lock | None | Triggered at 10% Global Ratio |
How LVP Advogados Can Help
The complexity of these new rules means that "standard" investment strategies may no longer apply in Lisbon’s historic center. Whether you are looking to acquire a property, manage an existing license, or understand the specific ratios of a neighborhood you are interested in, expert legal guidance is essential.
Navigating the intersection of municipal law and national housing policy requires a detailed, case-by-case analysis. We remain at your disposal to clarify how these changes affect your specific situation or investment plans in Portugal Reach us through our contact form for a more detailed analysis.
* The application of these rules may vary depending on specific circumstances and administrative interpretation.
