Thinking about converting your property into a short-term rental? Portugal is ideal for short-term rentals, from luxury apartments with panoramic views to charming vacation rentals. With its historic charm, popular attractions, and easy access to other Schengen areas, Portugal’s cities and locations make it a fascinating destination for travelers.
Whether you’re considering renting apartments in bustling cities or looking to provide student accommodation in a fantastic location, you can tap into a market that generates year-round income.
In this guide, we’ll walk you through all the essentials for setting up your short-term rental in Portugal, including registration and obtaining your short-term rental license (Licença de Alojamento Local). This includes key information about rentals in Portugal to help you get started.
How to Acquire a Short-term Rental Portugal License
First, you must obtain a license to operate as an Alojamento Local (AL). This license is crucial for legally listing your property as a short-term rental on popular sites like Airbnb and Booking.com. The Local Lodging Regime (Alojamento Local Regime), established in 2014, governs short-term rentals.
You’ll also need to register your property as touristic accommodation with your local town hall (Câmara). This registration is vital for meeting the legal requirements and making the most of the short-term rental market. By following these guidelines, you’ll be well-positioned to offer homes or apartments for rent in Lisbon and capitalize on the demand for rentals in Portugal.
How to register
To officially register for your short-term rental Portugal licence, you need to:
- Open an activity on the Portuguese Tax and Customs Authority portal and register a new activity with CAE 55201 or 55204.
- Register a local accommodation number by going to the RNAL website and submitting documents such as the property’s land register, your Citizen Card, and proof of opening activity with the Portuguese Tax and Customs Authority.
- After registering your Alojamento Local, you must meet the inspection requirements within 30 days. The local Municipal Council will carry out this inspection. Your property should have a fire extinguisher, fire blanket, first aid kit, a house instruction booklet in four languages, and an acrylic identification plate marked “AL.” Additionally, you need to provide information about the availability of a complaints book.
Following on from registering, you need to ensure that you:
- Issue invoicing receipts for all the bookings you receive through the Portuguese Tax and Customs Authority (Finanças) portal, sending them to guests within five days.
- Submit mandatory data to AIMA, such as your guest’s name, ID card number, nationality, and travel information.
- Collect Tourist Taxes and pay them to your local City Council.
To get into short-term rentals in Portugal, you must register your properties as Alojamento Local (AL). This applies to various types of properties, including houses and apartment rentals. An AL provides temporary accommodation in exchange for a set price. Ensure your short-term rental complies with all registration requirements to offer a smooth rental experience.
To simplify registering your Airbnb listing in Portugal, follow these steps:
- Go to “Your Listings” on airbnb.com.
- Select your listing in Portugal.
- Click the “Registration” button at the top of the page.
- Follow the instructions to complete the registration.
- Click “Submit” to finalize the process.
If you have multiple listings in Portugal, you need to follow the same registration process for each one. If you’ve registered, simply complete the steps to add your existing permit number to your listing. There’s no need to renew your registration unless there are changes to your listing or registration details.
If any updates occur, notify the relevant Portuguese authorities within ten days and update your property listing on Airbnb. Remember, the registration process is free of charge.
Required documents
To comply with Portuguese regulations, you need to provide the following documents or information to the authorities:
- The name, address, and NIF (Portuguese tax number) of the owner or person who will carry out the activity
- The activity start date
- The property capacity (the number of beds, rooms, and guests)
- A valid authorization of the use of the property
- Emergency contact details
- Your residency’s name and address
- Your passport, ID, and company documents
- The land registry document
- A signed declaration that states that your real estate is a suitable AL establishment
- Lease agreement, deeds, or other documents that entitle you to rent your property
- Declaration of Tax Activity (Declaração de Início de Atividade) CAE 55201 or 552014
What are short-term rental containment zones?
Lisbon City Council introduced short-term rental containment zones in 2019, limiting the areas where AL licenses can be granted. This was in response to problems such as an oversaturation of AL properties in certain regions.
Areas in Lisbon like Alfama, Bairro Alto, Baixa, Graça, and Mouraria cannot receive any more AL registrations.
What are the differences between short-term, monthly, and long-term rentals?
When considering renting out your property, it’s essential to understand the different options available in Portugal. Here’s a quick guide to help you make an informed decision:
AL properties
AL (Alojamento Local) properties are ideal for short-term rentals and must be fully furnished. Located near historical sites, popular attractions, or within a short distance of public transport, these rentals in Portugal offer easy access to local amenities, ensuring an enjoyable stay. Other types of properties, including luxury apartments, can also be considered, but furnished rentals are particularly sought after for their convenience and comfort.
Long-term rentals
If you’re considering long-term renting in Portugal, these can be apartments for rent that don’t necessarily need to be fully furnished. Long-term rentals in Portugal have specific legislation and require a detailed rental contract. Previous tenants may leave behind furniture or appliances. Ensuring easy access and a short distance to essential amenities for long stays or other rentals can help tenants live comfortably.
Monthly rentals
Monthly rentals, including serviced apartments for rent, are generally furnished rentals with a fully equipped kitchen. They might also offer wi fi, free parking, and sometimes even a private pool or private garden. Monthly rentals can be a practical option if you are in an area affected by AL suspension zones.
Leasing your property as a monthly rental does not require an AL permit. However, while monthly rentals may be more straightforward to set up and attract digital nomads or people relocating for work, they might not be as profitable as short-term rentals. Make sure to have a well-drafted rental contract to cover all details.
For those interested in operating a short-term rental in Portugal, understanding these distinctions will help you optimize your property’s potential and navigate the regulations effectively. This can make your property an ideal place for vacationers and long-term guests alike.
Touristic Enterprises for Short-Term Rental Portugal
Your Portugal short-term rental might be classified as a touristic enterprise. Examples of such enterprises include:
- Hotels, including bed and breakfasts, guesthouses, and inns
- Holiday villages
- Resorts
- Touristic apartments
- Caravan sites and campsites
- Tourism enterprises in rural areas
Touristic enterprises are governed by a specific legal regime called the Regime Jurídico da Instalação, Exploração e Funcionamento dos Empreendimentos Turísticos. This regime applies to establishments that provide accommodation services in exchange for remuneration.
Providing the right facilities and equipment is essential to ensure your short-term rental in Portugal is operational and meets all guidelines. This includes offering modern appliances and an on-site fully equipped kitchen.
Consider adding room service or other complementary services to enhance the guest experience. These features help promote an enjoyable stay and allow guests to live comfortably on your property.
What are the best locations for short-term rentals Portugal?
When looking for the best short-term rentals in Portugal, consider these five popular destinations, which offer a range of vacation rentals, including luxury apartments and charming properties.
Lisbon
As Portugal’s vibrant capital, Lisbon is a prime location for short-term rentals. Due to saturation, popular destinations within the city, like Alfama, Bairro Alto, Baixa, Graça, and Mouraria, are currently restricted from new AL (Alojamento Local) licenses. However, there are still plenty of options for vacation rentals in other neighborhoods. For property owners, Lisbon offers a bustling market with a high demand for rental properties, leading to substantial rental income potential.
Porto
Porto is another top choice for short-term rentals in Portugal. Known for its scenic riverfront and historic architecture, Porto attracts visitors who seek both culture and relaxation. Whether you’re offering luxury apartments or cozy vacation rentals, Porto’s appeal as a popular destination ensures strong rental demand and potentially higher returns for property owners.
Algarve
The Algarve region, renowned for its stunning beaches and sunny weather, is a hotspot for vacation rentals. Property owners in the Algarve can benefit from a steady stream of tourists throughout the year. Rental properties in Portugal’s Algarve offer excellent opportunities for generating consistent income, as the region remains a favorite among summer vacationers and off-season travelers.
Sintra
Famous for its fairy-tale palaces and lush landscapes, Sintra is an attractive destination for short-term rentals. The area’s unique charm makes it a sought-after location for vacation rentals, including luxury apartments. Property owners can capitalize on Sintra’s appeal to tourists seeking cultural and natural beauty, leading to high demand and potentially lucrative rental opportunities.
Cascais
This picturesque coastal town near Lisbon offers a relaxed atmosphere and beautiful beaches. Cascais is a popular destination for those seeking a quieter alternative to Lisbon while still close to the capital. Vacation rentals in Cascais are in high demand, providing property owners with strong rental income prospects and a desirable location for short-term stays.
Local Accommodation Requirements
For your short-term rental property in Portugal, you’ll need to ensure it meets specific accommodation requirements:
- The property can have no more than nine bedrooms and accommodate up to 30 people unless it’s a hostel.
- It must be in good condition, with fully functional electronic installations, and connected to both the public water supply and sewage network. Additionally, it needs working tap water and at least one window or balcony for proper ventilation.
- The property must be fully furnished, including kitchen utensils, and have at least one toilet for every four rooms or ten guests. For shared private bathrooms used by several rooms, there should be a door with a lock for privacy.
- Common sanitary facilities must include at least one toilet, a washbasin, and a shower for every six guests. Properties with more than ten users must also comply with fire safety regulations.
- A check-in reception service must be available in person, by telephone, or electronically. This includes providing clear house rules and ensuring a means of communication with the reception service.
- Local accommodation operators must cooperate with national authorities by providing data on the number of users, overnight stays, and other necessary statistics.
Taxation on Your Short-Term Rental Portugal Activity
Income tax
Regarding your short-term rental income in Portugal, you’ll need to navigate through specific tax regimes and obligations. Here’s what you need to know about the tax implications for your short-term rental Portugal activity:
Tax regimes
- Simplified regime: If your earnings from local accommodation are less than €200,000 per year, you can opt for the simplified regime. Under this regime, only 35% of your taxable profit is subject to tax based on hotel services and similar activities. The remaining 65% is considered running costs and isn’t taxed.
- Organized accounts: The organized accounts regime applies for earnings exceeding €200,000 annually. In this case, Corporation Tax (IRC) rules will determine your taxable profits. Here, a fixed rate of 21% applies to all earned profits.
Value added tax (VAT)
Local accommodation services are subject to a reduced VAT rate of 6%, which covers accommodation and breakfast costs. You can claim a VAT exemption if you’re on the simplified regime and your annual income is below €10,000.
If you’re not exempt, you’ll need to pay VAT through periodic returns, either monthly or quarterly, depending on whether your turnover is above or below €650,000. These returns should be submitted through the Portal das Finanças.
Understanding these tax regimes and VAT obligations will help you manage your finances effectively and comply with Portuguese tax laws.
How Can We Help You Find Your Dream Property?
Goldcrest Real Estate is the first buyer’s agent in Portugal, providing you with a tailor-made service to find your ideal property in Portugal. From sourcing to acquisition and aftercare, Goldcrest guides you throughout the buying process.
Here's how Goldcrest stands out in making your property dreams come true:
LOCAL KNOWLEDGE: Goldcrest has offices throughout Portugal, ensuring a strong presence from the mainland to the Azores and Madeira.
INDEPENDENT SERVICE: Goldcrest don’t represent any specific development or project, ensuring their advice remains impartial. By objectively analyzing every opportunity, Goldcrest focuses on maximizing your investment prospects. They partner with various agents, sellers, promoters, and developers, ensuring a broad spectrum of property options. The goal is straightforward: To help you find the best property at the most favorable price, whether you're buying or renting.
STREAMLINED PROCESS: Goldcrest provides a dedicated real estate consultant paired with a top-notch client management system for smooth information exchange. With the aid of advanced technology, like metasearch tools, they guarantee expansive market coverage. Goldcrest's viewing itineraries are tailored to your needs, and they're always ready to assist, be it in-person or on your behalf. When it comes to pricing, they use data-driven analysis to ensure you get the best deal. And, to make your journey smoother, Goldcrest assigns a dedicated onboarding account manager for every client.
ALL-ENCOMPASSING SOLUTION: Navigating financial aspects? Goldcrest is here to guide you through finance options and manage the required documentation. If you need property management solutions or connections to builders, architects, designers, and gardeners, they have you covered. Relocating? Their concierge services are designed to assist in everything, from securing accommodations to handling utility connections.
TRANSPARENCY AND PRIVACY: Goldcrest operates with a commitment to GDPR compliance, ensuring your data is protected. Expect a clear and detailed pricing model without any hidden surprises. Plus, they provide independent due diligence services to ensure every decision you make is informed.
Frequently Asked Questions about Short-term Rentals in Portugal
What are the best short-term rental options in Portugal?
For short-term rentals in Portugal, luxury apartments with sea views are highly sought after. Properties with a private pool and private garden offer a premium experience. Vacation rentals with swimming pools are also popular. For those seeking more amenities, consider rentals with free parking.
Why should I choose a vacation rental in Portugal?
Choosing vacation rentals in Portugal offers a range of properties in beautiful locations. From luxurious modern apartments with ocean views to charming countryside farmhouses, there’s something for everyone.
Portugal is generally more affordable than Western European cities like London or Paris. For an extended stay or a fascinating destination, Portugal provides great options.
How much are vacation rentals in Portugal?
The cost of vacation rentals in Portugal varies based on location, property type, and seasonal demand. Lisbon tends to be more expensive compared to other Portuguese cities. Monthly rentals might be more affordable than short-term rentals, and booking early can help you find cheaper options.
Are there vacation rentals with a fully equipped kitchen in Portugal?
Yes, many vacation rentals in Portugal come with a fully equipped kitchen. This is common in properties designed for long stays or those in scenic areas like the Douro Valley.
What are the available options for an extended stay in Portugal?
For an extended stay in Portugal, options include luxury apartments with sea views and amenities like a private garden or swimming pool. Long-term rent options provide more stability and often come at a lower monthly rate.
Digital nomads may opt for serviced apartments offering additional conveniences. Many vacation rentals are also available for longer stays with negotiable terms.
Can you rent a property for three months?
Yes, you can rent a property for three months. For an extended stay of this length, opting for a monthly rental is usually more cost-effective than short-term rentals, which often charge a higher price per night.
However, as a digital nomad or for any extended stay, you might be able to negotiate a better monthly rental rate.
How much does it cost to rent a house for a month in Portugal?
Housing in Portugal is exceptionally affordable. Small apartments in the interior of the country sometimes rent for €290-€345 a month (though typical prices come closer to €460-€560). However, a similar-sized home in a trendy Lisbon neighborhood could easily cost four times as much.
What features do tenants look for in short-term rental units in Portugal?
Tenants in Portugal often seek luxury apartments with sea views and modern amenities. Features like a private pool or private garden are highly desirable.
Vacation rentals with swimming pools and free parking are also popular. These amenities contribute to a more enjoyable extended stay.
Which search portals can tenants use to find luxury apartments in Portugal?
Tenants can find luxury apartments in Portugal on popular search portals like Airbnb, Booking.com, and OLX. These platforms list various vacation rentals and properties with features like a private pool or private garden.
Additionally, websites focused on rentals in Portugal offer detailed listings for high-end properties. Digital nomads can use these portals for their extended stay needs.
What are Portugal's short-term rental laws?
Portugal’s short-term rental laws require properties to be registered and hold an AL license. The property must meet certain conditions like having a private garden or swimming pool for compliance.
These regulations ensure the safety and quality of vacation rentals. The AL license is essential for legal short-term rental operations.
Are there any short-term rental restrictions in Portugal?
Yes, there are restrictions for short-term rentals in Portugal, including limits on the number of guests and requirements for amenities. Certain areas may have bans or limitations on vacation rentals to address housing shortages.
Additionally, properties must meet standards like having a private pool or sea views. Always check local regulations before listing.
What is an AL license for short-term rental in Portugal?
An AL (Alojamento Local) license is required to legally operate a short-term rental in Portugal. It certifies that the property meets safety and quality standards, including features like a private garden or swimming pool.
Without this license, you cannot legally offer your property as a vacation rental. The AL license is crucial for compliance with local laws.
Which is more lucrative, vacation rentals or general short-term rental accommodation?
Vacation rentals are often more lucrative than general short-term rental accommodation due to their appeal to travelers seeking premium experiences. Properties with features like a private pool and sea views tend to attract higher rates.
Luxury apartments with amenities like a private garden also command better prices. For the best returns, investing in high-demand vacation rentals is recommended.
What are the best places for short-term rentals in Portugal?
The best places for short-term rentals in Portugal include Lisbon, Porto, and the Douro Valley. Areas like Sintra Cascais Natural Park and the Algarve offer fantastic options. Luxury apartments in these regions often feature amenities such as a private pool and sea views.
What amenities should I look for in a luxury apartment in Portugal?
When choosing a luxury apartment in Portugal, look for amenities like a private pool, fully equipped kitchen, and Wi Fi. Properties with a private garden and free parking are also highly desirable.
What should I consider when preparing my property for short-term rental?
When setting up your property, include wi fi and ensure it is a furnished rental. These elements are crucial in making your luxury apartment stand out from other rentals in Portugal and can appeal to various types of guests
What are the essential features for a successful short-term rental in Portugal?
To attract guests, make sure your property includes wi fi and is a furnished rental. For a luxury apartment, consider adding amenities like a swimming pool. Highlight these features in your listing to make your property stand out among the rentals in Portugal.
How can I ensure my short-term rental offers an exceptional guest experience?
Focus on providing an ideal place for guests by maintaining high standards in your furnished rentals. Ensure amenities like wi fi are top-notch. These features will enhance the appeal of your property within the competitive market of rentals in Portugal.
Can non-EU citizens buy property in Portugal?
Yes, non-EU citizens can buy property in Portugal. The process for buying property in Portugal is relatively straightforward for foreign investors, and many are attracted by the country’s Golden Visa program, which offers residency benefits for property purchases above a certain amount.
