(last updated in december, 6th)
The Lisbon City Council's executive approved changes to its short-term rental regulations on December 4th, limiting the issuance of new licenses. This new regulation follows Decree-Law No. 76/2024, which returns the power to regulate these establishments to municipalities.
Creation of a Single Containment Area
The primary measure of this new regulation is the creation of a “single absolute containment area” for the entire municipality that prohibits any new registration in the capital while the universal occupancy rate is above 5%. Currently, this number is greater than 7%.
Areas of Absolute Containment and Relative Containment
When the index reaches below 5%, there are still two barriers to issuing new licenses. A relative containment area is created for neighborhoods with an occupancy rate between 2.5% and 5%. Here, it will only be possible to develop new holiday rentals in extraordinary cases. The exceptions are the registration of new licenses with the “room” modality in dwellings with a typology equal to or greater than T2 and establishments that appear after rehabilitating buildings that have been vacant for more than three years and have some social utility.
If a neighborhood reaches a value above 5%, the issuance of new licenses is blocked in that location, with exceptional cases not applicable.
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How to Open a Short-Term Rental in Portugal
