Portugal’s beauty not only captivates visitors but also presents a golden opportunity for those venturing into the short-term rental market. For hosts, Portugal is not merely a location but a canvas, offering the chance to weave the warmth of Portuguese hospitality.

However, thriving as a short-term rental host in Portugal entails more than just an inviting property. It demands a keen understanding of the legal requirements, guest expectations, and market trends that sculpt the industry. Whether you're pondering the transformation of your property into a traveler's retreat or aiming to elevate an existing rental this piece is your portal to mastering the short-term rental market in Portugal, packed with insights to empower hosts to understand the local regulations to enhance guest experiences and profitability.


There is no national short-term rental association in Portugal.

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short term rentals
What are short Term Rentals in the Country?

In Portugal, a short-term rental is described as a furnished building or a fraction of a furnished building that is presented and made available to tourists against payments on websites or travel agencies; and may offer complementary services, such as cleaning or a reception desk, for periods of less than 30 days.

It is referred to as “Alojamento Local,” although “Alojamento Local” also encompasses lodging establishments, including hostels or dormitories.

What is the maximum length of stay?

Unlike the restrictive caps found elsewhere, Portugal allows you to welcome your guests with open arms, offering an unrestricted length of stay. It, allows host to connect with travelers from around the globe on their terms. Join us in celebrating the endless possibilities of hosting, where your only limit is the horizon.

Are there National Rules or Regulations Governing Short-Term Rentals in the Country?

Yes, there are two major rules which are the;

Property Registration and Guest Registration Requirement

You must register your guest with 'Serviço de Estrangeiros e Fronteiras,' the Portuguese Border Control, irrespective of the location of the alojamento local in the country. However, you must first register your property with SIBA to satisfy this responsibility. You are required to provide the following guest information during the registration

  • Guest Identification Information
  • Residence address and country
  • Arrival and departure dates


  1. Penalties of between €100 and €2,000 may be assessed for failure to comply with the guest registration requirements.
  2. Inspections may be performed at any time by the Tourism Board and the Food and Economic Security Authority (ASAE).
  3. Every two years, certified inspectors must conduct routine inspections of your gas equipment.
  4. Make sure you abide by all rules set forth by the National Commission for Data Protection (CNPD), particularly those about the installation of video surveillance systems and data retention.

Ensure you check your local municipality to know the other rules that apply or subscribe to the lodge compliance package for the regulations that are specific to your property.

Is there any National Tax that affects short-term rental?

If you rent out a place for tourists in Portugal, you need to pay taxes on the money you make. First, sign up your rental business with the local tax office online or in person. You'll fill out a form with details like your passport, tax number, and how much you think you'll earn each year.

You also have to give your guests online invoices for their stay, using either a paid service or the free Portuguese tax website. The invoice should list the guest's name (not a company), the total payment you received, and include VAT.

For small businesses making less than 200,000 Euros a year, taxes are simpler, and you pay 35% of your income. If you make more than that, you'll need a professional accountant in Portugal to help, and you still pay 35%. You have to report and pay these taxes every month by the 12th.

Tourist Tax: Collect a small nightly tax from your guests (only for the first seven nights and for guests over 13 years old). This tax is usually 1-2 euros per night. Give this tax to your local city council. Check with them for exact details.

VAT: If you sell a lot, you might need to add a 6% VAT to your guests' bills and pay this to the tax office every month. Check with the tax authorities if you need to do this.

permits, license
Are there any Permits, Licenses, or Registrations for Short-term Rentals in the Country?

Your (Alojamento Local) is illegal if it is not registered at your local municipal (Town Hall) or online, as the registration number issued by your municipality certifies that your alojamento local is legal**.** The information required to register comprises;

  • The name, address, tax Number (NIF), and the emergency contact of the host;
  • The number of rooms available for rental and the maximum number of guests that can be accommodated
  • A means of identification which may be a passport or company documents
  • A valid usage permit received from the Municipal Council or a habitation permit - Emergency contact information
  • Valid authorization of use of the property obtained at the Municipal Council or a habitation license
  • The address and name of the accommodation
  • Land Registry document
  • A signed declaration that your property is suitable as an Alojamento Local establishment
  • Lease agreement, deeds, or other documents that entitles you to rent your property
  • Declaration of Tax Activity (Declaração de Início de Atividade), CAE 55201 or 552014, etc.

This registration may take a few days or weeks, depending on your municipality, as some municipalities inspect the rental property before the assignment of a registration number to ensure that the rental property satisfies the requirements.

Is there any National Association for STR owners in the Country?

There is no national short-term rental association in Portugal.

National Association for STR Owners


Lodge compliance is not a licensed tax or financial advisor. Therefore nothing in the above article should be construed as tax, legal, or financial advice. Contact your local tax office for information regarding your personal circumstance.

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