Alojamento Local (AL) Still Central to Holiday Lets
In Portugal, properties offered short-term to tourists, including Algarve apartments and villas, must be registered under the Alojamento Local (AL) system. This local lodging regime is the legal framework governing Algarve holiday rentals, and compliance is essential to avoid fines, listing removals, or other enforcement actions.
Where We Stand Right Now
National Law Changes (Effective Since 2024–25)
Recent reforms to AL law (principally via Decree-Law No. 76/2024) brought important changes that now shape operations in 2026:
- AL licences no longer expire or require regular renewal, removing uncertainty that previously affected owners.
- Licences are transferable, meaning they can move with the property upon sale or inheritance (a significant benefit for investors).
- Municipalities now have authority to regulate new licences and local conditions, instead of blanket national limits.
- Capacity rules remain in place (e.g., a maximum of 9 rooms and 27 guests per AL unit), with specifics depending on property type.
These updates were implemented from late 2024 and throughout 2025 and continue into 2026. They represent policy shifts already in force rather than changes scheduled for 2026.
AL Licence Requirements Remain Clear
To legally operate a holiday rental in Lagos or elsewhere in the Algarve:
- You must register your property as AL with your local Câmara Municipal (town hall).
- An RNAL registration number will be issued and must appear on all listings and promotional materials.
- Properties are inspected to confirm they meet safety, hygiene, insurance and regulatory standards.
In practical terms, this means you cannot legally list your villa or apartment on Airbnb, Booking.com, or similar platforms without an AL licence. This applies to villa rentals in Algarve and all Algarve holiday rentals.
Municipal Control and Local Limits
While Algarve municipalities have more control to set local conditions, there are currently no Algarve-wide bans on new licences like some other European cities have introduced. Local councils can:
- Set local regulations or temporary suspensions of new registrations in areas with housing pressure.
- Require accurate zoning, safety checks and compliance with building use rules.
Owners should check with their specific municipality (e.g., Lagos City Hall) for any local limits that may affect new applications or operational requirements.
What May Continue to Evolve in 2026
While no sweeping new national laws are scheduled specifically for 2026, several trends are worth watching:
Municipal Action on Local Licensing Conditions
Councils with a high number of existing AL licences may:
- Refine containment zones or local caps to manage housing availability.
- Introduce monitoring or reporting requirements for guest numbers, safety compliance or nuisance controls.
These are not yet universal, but councils in high-pressure coastal areas, including in parts of the Algarve, may adopt stricter conditions over time.
Increased Inspection and Enforcement
Authorities are paying closer attention to:
- Safety equipment, emergency access and capacity limits
- Accuracy of registered details vs actual use
- Insurance and tax compliance
Properties not meeting these standards may face penalties or even licence cancellation.
Steps for Algarve Owners in 2026
Whether you’re a new investor or an established operator in Lagos or the Algarve, here’s what to review:
Licence & Registration
✔ Confirm your AL licence is valid and displayed on listings.
✔ If the property changed ownership, verify licence transfer.
Safety & Compliance
✔ Maintain up-to-date civil liability insurance.
✔ Ensure all safety equipment and documentation meet municipal requirements.
Listings & Records
✔ Ensure your online listings exactly match your registered details (capacity, type, address).
✔ Keep clear records of bookings and taxes – reporting correctly avoids fines.
Local Regulations
✔ Contact your municipal tourism or licensing office to check for any specific local rules or limitations that could apply to your street, building or neighbourhood.
FAQs – Quick Answers for 2026
Do I still need an AL licence in 2026?
Yes – any property rented short-term to guests must have a valid Alojamento Local licence.
Can I transfer my AL licence if I sell the property in 2026?
Yes – licences are now transferable with the property.
Are there new bans or suspensions coming in 2026?
No nationwide ban is confirmed, but municipalities may impose limits on new licences in specific areas.
Will inspections become more common in 2026?
Yes – councils are paying closer attention to compliance and safety standards.
