Registering a short-term rental: headache or straightforward?
Setting up a new Alojamento Local (AL) — Portugal's licensed short-term rental scheme — has such a reputation for being heavy going that plenty of people give up before they have started. We would like to take some of the mystery out of it and show you that it can be more straightforward than it looks.
The registration steps have a name for being bureaucratic and slow, complicated enough that some prefer to carry on letting outside the law. That is unfortunately still common in Portugal, and a quick look at Airbnb shows no shortage of listings whose licence reads "Exempt" or is simply a random number.
To make it easier, here is a numbered guide covering every step from the beginning to holding the licence and welcoming your first guests, assuming the property is already furnished and ready:
1. Register the activity with the tax office
Register the activity under CAE 55201 — Alojamento Mobilado para Turistas (furnished accommodation for tourists). Registering is free and can be done online or in person at a tax office (Finanças). This is also where you can register for intra-EU transactions.
2. Take out public liability insurance
Speak to your insurance broker. Practically every insurer offers this product.
3. Get the property paperwork together
You need a plain copy of the caderneta predial (the property's tax record), a plain copy of the land registry certificate, and the habitation or use licence.
4. File the comunicação prévia com prazo
On the Balcão do Empreendedor (eportugal.gov.pt), the government's business portal, select "registo de alojamento local". Choose the council area the property sits in and click "Efectuar pedido".
5. Submit the registration
With all the paperwork above to hand, it is a matter of filling in the fields and submitting. The relevant town council then has up to 10 days to respond. If everything is in order, the application is approved and your licence number is issued.
The process is simple enough, but do pay attention to every field. Filling something in incorrectly can get the application refused, and then you start again from the beginning.
Some councils also inspect a newly registered property. Whether they do varies from one to another, some charge a fee, and there is a checklist you have to satisfy for the licence to stand.
