The laws regarding Local Accommodation (LA) in Portugal have undergone significant changes with the introduction of the “Mais Habitação” program, set to take effect in 2024. These new measures aim to rebalance the relationship between condominium and property owners who rent out their properties for short-term accommodation. The focus is on protecting the rights of property owners by limiting the influence of the condominium on decisions regarding local accommodation.
What has changed with the new rules?
The new measures centralize decisions on the registration of local accommodation, reducing the power that condominium once held to block or contest the operation of LA units in their buildings. Under previous laws, condominium could, by a qualified majority, influence or halt LA operations if they felt it negatively impacted their quality of life. With the introduction of the ‘Mais Habitação’ program, this influence has been significantly reduced, further strengthening property owners’ rights
The main changes include:
- Reduced Influence of Condominium: condominium now have less ability to restrict local accommodation activities in residential areas. Previously, the condominium could block LA operations by a qualified majority if they believed it disrupted their living environment. The new rules shift the decision-making power, limiting the ability of the condominium to contest or block new LA registrations;
- Centralized Decision-Making: the new legislation seeks to standardize LA registration criteria, limiting the ability of condominiums to impose restrictions on operations, except in extreme cases.”The responsibility for approving and monitoring new registrations now lies with relevant authorities;
- Impact on High-Density Areas: while existing property owners will continue to operate, it will become more difficult to register new LA units in high-density urban and tourist areas, such as Lisbon and Porto, where real estate pressures and tourism demand are highest.
What Are the Rights of Property Owners?
Despite the reduction in the influence of the condominium, property owners operating under the LA regime retain key rights:
- Protection of Existing Registrations: property owners already operating within the LA regime before the new rules take effect will have their existing registrations protected, as long as they comply with new regulatory requirements;
- Support in High-Pressure Tourist Areas: although new LA registrations will face stricter rules in certain areas, current operators are assured of continued operation, and the government may offer incentives or ease regulations for these areas;
- Increased Responsibility: starting in 2024, property owners are required to ensure their properties comply with all safety regulations and that guests do not disturb the peace of other residents.
Recommendations from Reis & Pellicano
Given the complexity of these new regulations, it is crucial for both property owners and condominiums to be well-informed about their rights and obligations. At Reis & Pellicano, our team of lawyers is ready to provide expert legal advice on the changes in local accommodation regulations and their implications. If you need help navigating these new laws, contact us for personalized legal support.
