If you have a villa or apartment which you rent out for short term occupants, you must have a Rental License.
Not possessing a Rental license is now a very risky business. Fines can range from 2,500 to 40,000 Euros. TopHat Services can help you apply for your rental license and make sure that you and your property are safe from fines and other legal problems. Contact Us for more information.
Recent Alterations to the Portuguese Rental License Law
On August 22nd, the Law Nº 62/2018 was published in the Portuguese Government Official Journal (Diário da República), which changes the legal framework applicable for Rental License establishments. Some of these changes are global, affecting all those who explore an establishment with a Rental License, while other measures are circumstantial, and have an impact depending on the specifics of the particular Rental License establishment.
Below you may find the articles regarding the relevant measures for Rental Licenses in Apartments and Villas, which is an adjustment of the regime of authorization for Rental License establishments, proceeding to the second alteration to the Law Nº 128/2014 of August 29th.
The existing Rental License establishments have a period of two years, starting from date in forced by this law to comply with the requirements set forth in it, in particular those provided for in Articles 13A, 18 and 20A.
Article 5 - Rental License Communication exclusively online
The communication to register a Rental License is made exclusively through the “Balcão Único Electrónico” (online) under the article 6 of the Law Nº 92/2010 of 26th of July, which gives each application a Rental License number after the period predicted in the Nº 9 from the article 6, which constitutes, for the purposes of this present Law, and in case of non-opposition, the registration number of the Rental License establishment, which is automatically forwarded to Turismo de Portugal, I.P., for the purposes provided in article 10.
Article 6 - Closing of Rental License Activity
The closing of the Rental License activity shall be communicated through the “Balcão Único Electrónico” (online) within a maximum period of 10 days after its occurrence.
Article 7 - Non-transferable of Rental License record number in containment areas
The registration number of the Rental License establishment, in the categories of "villa" and "apartment", located in containment areas under the terms of article 15-A is personal and non-transferable, even if in the name of or owned by a company.
The registration number will expire in case of transfer of ownership of the registration, cease of activity, lease or other form of alteration to the registered responsible for the Rental License.
This does not apply in case of inheritance.
Article 8 - Deadline for inspection by the Town Hall
The territoriality competent City Hall shall carry out, within a period of 30 days after submitting the Rental License request, an inspection to verify compliance with the requirements established in this law, without prejudice to the other supervisory powers that legally assist them.
Article 9 - Opposition to the Rental License activity by the Condominium Assembly
In the event that the Rental License activity is exercised in an autonomous fraction of a building or part of an urban building susceptible of independent use, the assembly of condominium owners, by decision of more than half of the owners of the building (by square feet owned), in a justified deliberation, resulting from the repeated and proven practice of acts that disturb the normal use of the building, as well as acts that cause discomfort and affect the rest of the condominium owners, may oppose the exercise of Rental License activity in the respective fraction, giving, for this purpose, knowledge of the decision to the Mayor of the territoriality competent City Hall.
Article 12 - Information Book
Rental License establishments are required to have an information book on its operation and its internal rules of use, including rules on collection and selection of municipal waste, operation of household appliances, noise and cares to be aware in order to avoid disturbances that may cause discomfort and affect the tranquility and the rest of the neighborhood, and must also contain the telephone contact of the person responsible for the Rental License activity.
The information book shall be made available in Portuguese and English and in, at least, two other foreign languages.
In case the establishments are inserted in collective housing, the information book should also contain the regulation with the practices and rules of the condominium that are relevant to the accommodation and for the use of the common parts.
The person responsible for the establishment must make available to the condominium his telephone contact.
Article 13A - Civil Liability Insurance
The holder of the Rental License must hold and maintain a multi-risk insurance against civil liability that protects him from his assets and claims in the course of his tourist activity, determining the responsibility of the owner of the establishment's operation and covering fire and property and non-property damage caused to guests and third parties, resulting from providing the Rental License activity service.
Article 15A - Delineation of Containment Areas
With the objective of preserving the social reality of neighborhoods and boroughs, the City Hall that is territoriality competent may approve by regulation and with justified deliberation, the existence of areas of contention, by parish, in whole or in part, for the installation of new and may impose limits on the number of Rental License establishments in that territory, which may take into account percentage limits in proportion to the properties available for habitation.
Article 18 - Required AL plaque for Apartments, Rooms and Lodging Establishments
For Apartments, Rooms and Lodging Establishments, the display of an identification plaque is mandatory, next to the entrance of the establishment.
Article 20A - Additional Condominium Contribution
The condominium may impose the payment of an additional contribution corresponding to the expenses resulting from the increased use of the common parts, with a limit of 30% of the annual value of the respective quota, to be decided in accordance with article 1424 of the Portuguese Civil Code.