Do I need a Tourist Licence to rent out my property?

There has been much confusion in the last few years as to whether it is necessary to have an AL Licence if you rent out your property in Portugal.

The answer is yes!

It is even more imperative nowadays that you have a licence as the Portuguese authorities (ASAE) now carry out inspections in order to find out if properties being let for holidays are compliant with the local lodging legislation which was updated in 2008.   Their aim is to end the illegal renting of properties and will come about as a result of planned inspections as well as from complaints and reporting.

All properties offered for rent must comply with a list of requirements which include hygiene and safety standards.  

The AL licence is specifically for temporary / holiday lets as opposed to renting long term to a lodger and applications for the licence are made at your local council (Câmera).  Note that different Câmaras may have different forms and procedures.

You will have to provide several documents for the application, including copies of your habitation / utilization licence for the property and declarations from a registered technician confirming the electric and gas equipment is in order.   You may get an inspection from the Câmara to ascertain compliance with the regulations.

Once approved, the Câmara will issue a plaque with ‘AL’ on it, to be displayed on the outside of the property but it is not currently obligatory to do this.

If you are caught renting out your property without a licence, the fines can go from €2,500 to €45,000.

Sovereign – Consultoria Lda are not able to assist with the AL Licence applications but many lawyers and villa managers are now providing this service to property owners.

Sovereign - Consultoria Lda
Parque Empresarial Algarve
8400-431 Lagoa

Tel: +351 282 340480    
Fax: +351 282 342259

Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, this information does not constitute legal or other professional advice. We do not accept any responsibility, legal or otherwise, for any error or omission.