This month marks the implementation of new short-term rental (Alojamento Local - AL) regulations in Porto, aimed at addressing housing challenges and ensuring a sustainable balance between tourism and residential needs. Below are the most critical updates affecting AL property owners and operators in the city:

1. Repeal of Previous Restrictions

The Portuguese government has reversed certain restrictions introduced under the 'Mais Habitação' (More Housing) programme. This includes the removal of mandatory license renewals and restrictions on new registrations, restoring decision-making power to municipal councils. This shift allows municipalities to manage local short-term rental availability more effectively.

2. Municipal Autonomy in Regulation

Municipalities now have increased autonomy to regulate short-term rentals within their jurisdictions. This includes the ability to define containment areas and implement specific measures to control the growth of AL establishments. For instance, Porto has identified certain parishes as containment areas due to high concentrations of short-term rentals.

3. Transferability of AL Licenses

The general rule of non-transferability of AL licenses has been repealed nationally. However, municipalities can create restrictions in designated areas, applying only to houses and apartments, and not to situations such as inheritance, divorce, or transfers to close family members.

4. License Expiration and Renewals

AL licenses no longer expire automatically. The previous requirement for reassessment in 2030 has been eliminated, providing operators with increased legal certainty and business stability.

5. Taxation Rules

Taxation rules for AL properties remain unchanged. This includes the tax conditions for the sale of real estate with an AL license.

6. Safety and Compliance Requirements

Properties must comply with safety, hygiene, and compliance requirements, including adherence to standards for electrical and gas installations.

7. Tourist Tax Increase

In an effort to manage over-tourism and maintain sustainable tourism practices, Porto has increased its tourist tax from €2 to €3 per night for non-residents. The revenue from this increased tax will support various sectors such as culture, heritage, environment, quality of life, and urban planning.

These updates reflect Porto's commitment to balancing the growth of the short-term rental market with the preservation of housing availability and community well-being. Property owners and operators are advised to review these changes carefully to ensure compliance and to understand the implications for their operations.