If I buy a property that already has an AL licence, does it transfer to me?

Yes — AL licences are attached to the property (the physical address), not to the licence holder personally. When you purchase a property with a valid AL licence, the licence transfers to you as the new owner. You notify the relevant municipality (câmara municipal) of the ownership change, and the licence continues under your name. This transfer mechanism makes properties with existing valid AL licences in moratorium areas significantly more valuable than comparable properties without. If you are buying in Lisbon or Porto with STR income as a priority, look specifically for listings that include an existing AL licence and verify its validity before purchase — request the AL licence number and confirm it is active through the SEF/tourism authority registry.

How do I apply for an AL licence in regions where it's still available?

The application is submitted through the Balcão do Empreendedor portal (ebalcao.gov.pt). Process: (1) Create an account using Portuguese NIF (tax number) — you need a NIF before applying. (2) Select the property address and intended AL category (apartment/flat, townhouse, villa, or rural). (3) Submit required documents: property ownership certificate (caderneta predial), floor plan, safety equipment checklist (extinguishers, emergency signage, first aid kit, carbon monoxide detector). (4) The municipality has 20 business days to respond. If no response within the deadline, the licence is deemed approved by tacit approval (deferimento tácito) under Portuguese administrative law. The process has become more streamlined with the BdE portal. Most Algarve and Silver Coast municipalities process applications within 2–6 weeks.

Can the condo HOA prevent me from getting an AL licence?

Yes, under the 2023 Mais Habitação reforms. Article 1422-A of the Portuguese Civil Code (as amended by Lei 56/2023) gives condominium assemblies the power to oppose new AL licences in their building by a vote of 2/3 of the fractions' value (not 2/3 of unit count — weighted by fraction value). If 2/3 of the condo association votes against permitting AL in the building, new AL applications for units in that building can be blocked. This vote can be passed at any time — which means a building that currently has no such restriction could vote one in after you purchase. For Canadian buyers purchasing with STR intent: (1) Check if the current condo regulations already prohibit AL. (2) Ask the current owner whether any AL opposition vote is pending or has been discussed. (3) In buildings where most owners are investor-landlords, the risk of an opposition vote is lower than in buildings where most owners are long-term residents.

How is AL income taxed for non-resident Canadians?

Non-resident Canadians (those who are not Portuguese tax residents) are taxed on Portuguese-source rental income at a flat 25% on gross AL income under the non-resident IRS code. This is different from the resident simplified regime calculation. Alternatively, Portugal allows non-residents to opt for taxation under the general resident schedule (Schedule A + B), which can produce a lower effective rate if your Portuguese income is low. Filing: non-residents must file the Modelo 3 annual IRS return in Portugal for any year in which they receive Portuguese-source income. On your Canadian tax return, report the gross AL income on Form T776 as foreign rental income and claim Portuguese tax paid as a Foreign Tax Credit on Form T2209. The Canada-Portugal Tax Convention Article 6 assigns primary taxing rights on real property income to Portugal — meaning Portugal taxes first, Canada gives credit. Budget for Portuguese NIF registration, annual IRS return filing fees (€200–€500 through a local contabilista), and the quarterly IVA VAT compliance if your AL income exceeds the €15,000 VAT threshold.

Are there safety requirements for an AL property?

Yes — AL properties must meet specific safety standards under Portaria 517/2008 (as updated). Required safety equipment includes: at minimum one fire extinguisher per floor, CO detector if gas appliances present, smoke detectors in each bedroom, first aid kit, emergency exit signage, fire safety blanket near cooking areas. Additional requirements for properties with pools: CPR instructions posted near the pool. All equipment must be in working condition and inspected regularly. Many AL violations that result in fines involve inspection failures related to safety equipment. The good news: meeting these requirements costs €200–€500 for a typical apartment. Beyond safety equipment, the property must have: an information folder (livro de informações) for guests with local emergency contacts, tourist tax information, and property rules; complaint book (livro de reclamações) available on request; and your AL licence number displayed visibly. Properties on Airbnb/Booking must include the AL licence number in the listing.

What is the tourist tax (taxa turística) and how does it apply to AL rentals?

Most Portuguese municipalities in tourist areas charge a per-person per-night taxa turística (tourist tax) that AL hosts must collect from guests and remit to the municipality. The rates vary: Lisbon charges €2.00 per person per night; Porto charges €2.00; Lagos (Algarve) €2.00; Albufeira €2.00; Madeira €2.00. Some smaller municipalities charge less or nothing. The collection obligation is the host's — not Airbnb's (though Airbnb does collect it in some Portuguese municipalities through automated collection). If you are operating AL directly or through Booking.com, you must collect the tax, issue receipts, and remit quarterly to the municipality. Failure to collect and remit is a separate infraction from AL licensing violations. As a non-resident Canadian operating remotely, the simplest solution is a local property manager who handles both collection and remittance as part of their management service.

If I buy a property that already has an AL licence, does it transfer to me?

Yes — AL licences are attached to the property (the physical address), not to the licence holder personally. When you purchase a property with a valid AL licence, the licence transfers to you as the new owner. You notify the relevant municipality (câmara municipal) of the ownership change, and the licence continues under your name. This transfer mechanism makes properties with existing valid AL licences in moratorium areas significantly more valuable than comparable properties without. If you are buying in Lisbon or Porto with STR income as a priority, look specifically for listings that include an existing AL licence and verify its validity before purchase — request the AL licence number and confirm it is active through the SEF/tourism authority registry.

How do I apply for an AL licence in regions where it's still available?

The application is submitted through the Balcão do Empreendedor portal (ebalcao.gov.pt). Process: (1) Create an account using Portuguese NIF (tax number) — you need a NIF before applying. (2) Select the property address and intended AL category (apartment/flat, townhouse, villa, or rural). (3) Submit required documents: property ownership certificate (caderneta predial), floor plan, safety equipment checklist (extinguishers, emergency signage, first aid kit, carbon monoxide detector). (4) The municipality has 20 business days to respond. If no response within the deadline, the licence is deemed approved by tacit approval (deferimento tácito) under Portuguese administrative law. The process has become more streamlined with the BdE portal. Most Algarve and Silver Coast municipalities process applications within 2–6 weeks.

Can the condo HOA prevent me from getting an AL licence?

Yes, under the 2023 Mais Habitação reforms. Article 1422-A of the Portuguese Civil Code (as amended by Lei 56/2023) gives condominium assemblies the power to oppose new AL licences in their building by a vote of 2/3 of the fractions' value (not 2/3 of unit count — weighted by fraction value). If 2/3 of the condo association votes against permitting AL in the building, new AL applications for units in that building can be blocked. This vote can be passed at any time — which means a building that currently has no such restriction could vote one in after you purchase. For Canadian buyers purchasing with STR intent: (1) Check if the current condo regulations already prohibit AL. (2) Ask the current owner whether any AL opposition vote is pending or has been discussed. (3) In buildings where most owners are investor-landlords, the risk of an opposition vote is lower than in buildings where most owners are long-term residents.

How is AL income taxed for non-resident Canadians?

Non-resident Canadians (those who are not Portuguese tax residents) are taxed on Portuguese-source rental income at a flat 25% on gross AL income under the non-resident IRS code. This is different from the resident simplified regime calculation. Alternatively, Portugal allows non-residents to opt for taxation under the general resident schedule (Schedule A + B), which can produce a lower effective rate if your Portuguese income is low. Filing: non-residents must file the Modelo 3 annual IRS return in Portugal for any year in which they receive Portuguese-source income. On your Canadian tax return, report the gross AL income on Form T776 as foreign rental income and claim Portuguese tax paid as a Foreign Tax Credit on Form T2209. The Canada-Portugal Tax Convention Article 6 assigns primary taxing rights on real property income to Portugal — meaning Portugal taxes first, Canada gives credit. Budget for Portuguese NIF registration, annual IRS return filing fees (€200–€500 through a local contabilista), and the quarterly IVA VAT compliance if your AL income exceeds the €15,000 VAT threshold.

Are there safety requirements for an AL property?

Yes — AL properties must meet specific safety standards under Portaria 517/2008 (as updated). Required safety equipment includes: at minimum one fire extinguisher per floor, CO detector if gas appliances present, smoke detectors in each bedroom, first aid kit, emergency exit signage, fire safety blanket near cooking areas. Additional requirements for properties with pools: CPR instructions posted near the pool. All equipment must be in working condition and inspected regularly. Many AL violations that result in fines involve inspection failures related to safety equipment. The good news: meeting these requirements costs €200–€500 for a typical apartment. Beyond safety equipment, the property must have: an information folder (livro de informações) for guests with local emergency contacts, tourist tax information, and property rules; complaint book (livro de reclamações) available on request; and your AL licence number displayed visibly. Properties on Airbnb/Booking must include the AL licence number in the listing.

What is the tourist tax (taxa turística) and how does it apply to AL rentals?

Most Portuguese municipalities in tourist areas charge a per-person per-night taxa turística (tourist tax) that AL hosts must collect from guests and remit to the municipality. The rates vary: Lisbon charges €2.00 per person per night; Porto charges €2.00; Lagos (Algarve) €2.00; Albufeira €2.00; Madeira €2.00. Some smaller municipalities charge less or nothing. The collection obligation is the host's — not Airbnb's (though Airbnb does collect it in some Portuguese municipalities through automated collection). If you are operating AL directly or through Booking.com, you must collect the tax, issue receipts, and remit quarterly to the municipality. Failure to collect and remit is a separate infraction from AL licensing violations. As a non-resident Canadian operating remotely, the simplest solution is a local property manager who handles both collection and remittance as part of their management service.

Reviewed on March 2026 by the Compass Abroad editorial team

Portugal AL Licence for Short-Term Rentals: What Canadian Buyers Need to Know

Portugal requires an Alojamento Local (AL) licence for all short-term rental activity — including Airbnb, Booking.com, and any paid tourist stay under 30 days. Operating without one carries fines of €2,000–€4,000. A 2023 moratorium suspended new licences in Lisbon's historic centre and parts of Porto, but the Algarve, Silver Coast, Madeira, and most of Portugal outside those zones still process new applications.

For Canadian buyers purchasing Portuguese property with rental income as part of the investment case, AL compliance is foundational. Here is the complete picture of how the licence system works in 2026.

Key Takeaways

Portugal requires an Alojamento Local (AL) licence for all short-term rental activity — including Airbnb, Booking.com, and any paid tourist accommodation lasting less than 30 days. Operating without one is illegal.
Fines for operating an unlicensed AL range from €2,000 to €4,000 per violation under Portugal's tourism law (Decreto-Lei 128/2014 as amended by Lei 56/2023).
The 2023 Mais Habitação package suspended new AL licences in high-pressure areas — primarily Lisbon historic centre (Baixa, Alfama, Mouraria) and parts of Porto centro. Applications outside moratorium areas are still processed normally.
As of 2026, existing valid AL licences remain in force. If you buy a property that already has an AL licence, the licence transfers with the property sale — this is valuable and should be priced accordingly.
The Algarve, Silver Coast, Madeira, and most of inland Portugal are outside the moratorium zones. New AL applications in these areas are generally available subject to building capacity limits.
STR income in Portugal is taxed at a flat 25% on gross receipts under the simplified regime (regime simplificado), or at progressive rates if you opt for the organized accounts (contabilidade organizada) regime.
Portuguese condos can impose internal restrictions on AL licences through a condominium assembly vote — a 2/3 vote can prevent new AL operations in the building.
The licence application is submitted through Balcão do Empreendedor (BdE) — Portugal's business registration portal. The municipality has 10–20 business days to respond.

Portugal AL Licence: Key Facts

Licence name: Alojamento Local (AL) — registered with municipality (câmara municipal)(Decreto-Lei 128/2014 as amended)
Operating without AL licence: Fine of €2,000–€4,000 per violation(Lei 56/2023 (Mais Habitação))
Moratorium areas: Lisbon historic centre (Baixa, Alfama, Mouraria, Castelo), parts of Porto centro — suspended for new applications(Lei 56/2023)
Moratorium duration: Ongoing — municipalities may extend or expand. Review municipal maps regularly.(Lei 56/2023 / municipal maps)
Application portal: Balcão do Empreendedor (ebalcao.gov.pt)(ATIC / tourism authority)
Licence application fee: €0–€300 depending on municipality(Municipal fee schedules 2026)
STR income tax (simplified regime): 28% IRS on 35% of gross receipts (effective rate ~9.8% of gross) for resident landlords; 25% flat for NHR/non-residents(Portuguese IRS code)
Condo veto: 2/3 of condo fraction vote can block AL in their building(Lei 56/2023 Art. 1422-A CC)

Background: Why Portugal Created the AL System

The Alojamento Local framework was created by Decreto-Lei 128/2014 to regulate the fast-growing short-term rental market that emerged after platforms like Airbnb launched in Portugal. Before the AL system, there was no specific legal category for tourist accommodation in private apartments — the market operated in a regulatory grey zone.

The AL framework created a licensing category and minimum standards for tourist accommodation in private properties. It was broadly permissive initially — most property owners in most locations could obtain a licence through a relatively simple administrative process.

The 2023 Mais Habitação (More Housing) package, passed amid a severe Portuguese housing affordability crisis, tightened the AL framework: it created geographic moratoriums in the highest-pressure tourist areas, gave condo associations veto power over new AL registrations, and added review mechanisms for licence renewals. The goal was to push some tourist accommodation supply back into the long-term rental market and reduce pressure on residential rents.

Where New AL Licences Are Available in 2026

AL licence availability by region — moratorium status as of 2026. Verify current municipal maps before purchase.
Region	New AL Licences Available?	Notes for Canadian Buyers
Lisbon historic centre (Baixa, Alfama, Mouraria)	Suspended (moratorium)	Existing AL licences transfer with property sale — premium value. Check licence validity before purchasing.
Lisbon outer parishes (Benfica, Belém, Ajuda, Olivais etc.)	Generally available	Check municipal containment map — some outer areas are inside moratorium. Verify with Câmara Municipal de Lisboa.
Porto historic centre (Bonfim, Cedofeita, Santo Ildefonso)	Partially suspended	Some parishes under moratorium. Porto has the most complex mapping — consult local specialist.
Algarve (Lagos, Albufeira, Vilamoura, Faro)	Available — subject to building capacity	Primary market for Canadian buyers. Seasonal rental demand strong (May–Oct). AL available in most buildings.
Silver Coast (Óbidos, Caldas da Rainha, Peniche, Nazaré)	Available	Emerging Canadian buyer destination. No moratorium. Growing STR market.
Madeira (Funchal, Calheta)	Available with regional variation	Madeira has its own governance — some areas have local restrictions. Tourism platform very active year-round.
Inland Portugal (Alentejo, Douro Valley, Beiras)	Generally available	Lower STR demand but growing in wine tourism areas. No moratorium. Rural AL (turismo rural) has separate classification.

The moratorium maps are determined at the municipal level — individual municipalities define their "containment areas" using criteria from Lei 56/2023. These maps can change as municipalities update their housing assessments. Check the current municipal containment area map (mapa das zonas de contenção) directly on the câmara municipal website for the specific parish (freguesia) before purchasing. This is non-negotiable pre-purchase due diligence if STR income is part of your plan.

The Value of an Existing AL Licence

In moratorium areas, an existing valid AL licence transfers with the property sale and represents genuine scarcity value. A Lisbon Baixa apartment with an active AL licence is legally permitted to operate as STR — a neighbouring unit without a licence cannot obtain one under the current moratorium. This licence premium is real and is increasingly being priced into Lisbon historic district listings.

Before purchasing in a moratorium area for STR purposes: (1) Request the AL licence number. (2) Verify it is currently active (not suspended, revoked, or expired) through the ATIC (Agência para o Investimento e Comércio Externo de Portugal) or municipal registry. (3) Confirm the property has no open complaints filed against the licence. An AL licence with unresolved complaints can be suspended.

AL Income: Canadian Tax Implications

Portuguese STR income creates tax obligations in both Portugal and Canada. Portuguese IRS applies to Portuguese-source income for both residents and non-residents. The Canada-Portugal Tax Convention assigns primary taxing rights on real property income to Portugal — Canada credits Portuguese tax paid against Canadian tax owing on the same income.

On your Canadian return: report gross AL income on Form T776, deduct allowable expenses (management fees, cleaning, maintenance, mortgage interest on the Portuguese property — prorated for rental use), and claim Portuguese taxes paid as a Foreign Tax Credit on Form T2209. If the property's adjusted cost base exceeded CAD $100,000, T1135 filing is required annually. For detailed Canadian reporting guidance, see our Foreign Rental Income CRA guide.

Buying Portuguese Property for STR Income?

Connect with a vetted Portuguese real estate specialist who can verify AL licence status, moratorium eligibility, and manage your rental for Canadian owners.

Get Matched with a Portugal Specialist

Portugal AL Licence: Frequently Asked Questions

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