Since 2005 many owners and letting agents have been caught by ASAE (the government inspectorate) and have been heavily fined as a result of not having a rental license for their property in Portugal. After much campaigning, a revised and simplified law “Alojamento Local” (Local Lodging) was passed in March 2008.

Fines range from €2,500 to €3,740 for individuals and from €25,000 for companies for renting without a license.

Decree Law nr.39/2008 of the 7th of March, stipulated the new legal regime for the installation, exploration and operation of tourism developments and revoked the existing laws ruling this matter. Article 3.1 determines that villas, apartments and hosting establishments, that have a habitation license, which render services of temporary lodging to paying guests, but which do not comply with criteria to be considered tourism developments, will be considered as Local Lodging Establishments. Any property in the category “Local Lodging Establishment” which is to be let commercially must now have the rental license “Alojamento Local” The Local Lodging Establishment should comply with a series of minimum conditions, which were stipulated in Ministerial Decree 517/2008 of the 25th of June:

• In good order internally and externally
• Connected to mains water (or bore hole)
• Connected to mains sewers (or septic tank)
• Hot and cold running water
• Rooms must be adequately furnished
• Sufficient ventilation and a system in place to block out natural light.
• Suitable locks for security and privacy
• At least one bathroom comprising toilet, sink and bath (or shower) for every three bedrooms

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We organise all the necessary certified documents and arrange an inspection by a registered electrician and by a gas engineer if applicable. We also arrange a fire safety certificate which has now become mandatory. With all of the above, we lodge your application at the Town Hall.

The application is stamped by the Town Hall which constitutes valid title to commence rental activity. In the subsequent sixty days the Town Hall may order a physical inspection of the property to confirm that all the minimum conditions are fulfilled. In the event that any conditions have not been met, the application will be cancelled immediately.

We are Jeanita Matinhos and Claire Kellock who met in 1991 whilst working for an Almancil law office.We are experts in Portuguese property documentation and have rejoined forces to provide our service of obtaining your Portuguese rental license.

If you rent your property in Portugal you are required by law to file a tax return. Contact Loule based Alconta who speak fluent English