With the recent publication of Decree-Law No. 76/2024, of October 23, the government reverses the restrictions imposed in 2023 by the Mais Moradia program and makes major adjustments to the Local Accommodation legal system (found in Decree-Law No. 128/2014, of August 29).
With these changes, which went into effect on November 1, 2024, the government hopes to boost the local lodging industry while offering assurances of stability and legal security. However, it also addresses concerns about the activity's recent effects on Portugal's economy and urban areas.
It should be noted that Mais Habitação has previously abolished the Extraordinary Contribution on Local Accommodation (CEAL) and the ageing coefficient establishment in August 2024.
In addition to lifting Mais Moradia's restrictions, this DL aims to further elucidate the AL's legal framework and give municipalities full control over decision-making. They will have a year to approve regulations on activities within their borders based on new containment and sustainable growth areas.
As a transitional measure and to ensure the efficacy of the new municipal regulations, municipalities were granted the option, following a rational discussion by the municipal assembly and a proposal from the municipal council, to temporarily halt the issuance of new registrations in designated areas for a year until the aforementioned regulations take effect.
In short, this package, having sought to create figures and procedures to better address the problems and complaints associated with the AL, thus repealed:
the de facto non-transferability of licenses;
the official expiration of inactive records in the absence of proof of continuous operation;
the suspension of new registrations for nearby lodging establishments; • the rule requiring local lodging establishments to be registered for five-year renewable periods;
the veto power of condos; and
the mandatory review of all existing records in 2030 on the date of publication of the Mais Habitação program (2023). Only the kinds of "hostels" that are situated in an autonomous portion are still subject to this veto authority.
However, it should be mentioned that municipal regulations have the potential to reinstate limitations, validity, and restrictions on the transmission of licenses. For this reason, it is important to resolve this matter as soon as possible.
Limitations on new records and their transmission in the "house" and "apartment" modalities are made possible by the new standards, which essentially permit the creation of areas of containment and sustainable growth in municipal regulations. These areas must be properly supported by specific studies and be reassessed every three years.
In order to assist the municipality in resolving conflicts between residents, local lodging establishment owners, condominium owners, and other interested parties, the position of the local lodging provider was also developed. Its existence must be specified in the relevant municipal regulations. In addition, the Ombudsman will be in charge of reviewing complaints that are sent to him and providing guidelines and recommendations regarding how ALs should operate.
With the exception of the "rooms" and "hostel" modality, the maximum capacity of local lodging businesses has also been altered, going down to a maximum of 9 rooms and 27 people (formerly 30 people). It is guaranteed that, if the institutions Installing convertible and/or extra beds, if they are able to, is also allowed as long as they don't add up to more than 50% of the fixed beds that are now in place.
As long as all legal conditions are fulfilled, it is also now possible to create commercial establishments and offer services on properties built before 1951. Parish councils no longer have any authority to oversee the proper implementation of local accommodation requirements in relation to business activity; instead, the new regime places all responsibility for this task on the municipalities and ASAE.
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