Portugal short-let — licensing changes by zone

A region-by-region summary of Alojamento Local licence positions in Lisbon, Porto, and the Algarve.

Market Updates · 28 April 2026 · Costa & Silva Team

The Portuguese AL (Alojamento Local) regime has been tightened in successive rounds, most materially in central Lisbon. The implications for investors entering the Portugal short-let market today are significant.

Lisbon

Central freguesias are largely closed to new AL registrations. Existing licences continue to operate. Acquisition strategies in central Lisbon need a transfer-of-licence position confirmed before purchase.

Porto

Significantly more permissive than Lisbon. Most central zones remain open with conditions; some peripheral parishes are unrestricted.

Algarve

Largely open. The licensing position varies by município but remains broadly available for new applications outside designated containment zones.

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Every Portugal deal pack confirms the AL position at deal-pack stage — including, where relevant, the transfer-of-licence mechanism and timeline.

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