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What is an Alojamento Local in Portugal?

Writer's picture: INLIS ConsultingINLIS Consulting

An Alojamento Local (AL) license allows property owners in Portugal to operate short-term rental accommodations for tourists. These properties can include a variety of options, such as apartments, villas, guesthouses, or hostels. Obtaining an AL license is a popular choice for homeowners, expats, and landlords looking to generate extra income while providing travelers with a comfortable and convenient place to stay.

AL license

How to Legally Operate an Alojamento Local (AL) in Portugal


Running an Alojamento Local (AL) requires compliance with Portuguese regulations to ensure your property is legally approved and safe for short-term rentals. Here’s a breakdown of the key steps:



1. Registration


To legally operate an AL, you must register your property with the Câmara Municipal (local council) and obtain an official AL registration number. This process involves:


  • Submitting proof of property ownership.

  • Providing a safety certificate confirming the property meets legal standards.

  • Declaring that your property complies with all applicable requirements.


2. Licensing and Compliance


After registration, your AL may be subject to periodic inspections to verify compliance with health and safety standards. Additionally:

  • You are required to display your AL license number on all advertisements, including booking platforms and promotional materials.

  • Maintaining compliance with regulations is essential to avoid fines or penalties.


3. Tax Obligations


Operating an AL comes with tax responsibilities, including:

  • Declaring rental income and paying income tax.

  • Accounting for VAT, if applicable.

  • Paying Municipal Property Tax (IMI) on your property.


Navigating the tax system can be complex, so it’s advisable to consult a tax professional to ensure full compliance and optimize your tax strategy.


By following these steps, you can legally and successfully manage your AL property in Portugal while maximizing its potential as a source of income.


Responsibilities of an AL Owner


Owning and operating an Alojamento Local (AL) in Portugal comes with several key responsibilities to ensure a smooth and compliant operation:


Responsibilities of an AL Owner

Owning and operating an Alojamento Local (AL) in Portugal comes with several key responsibilities to ensure a smooth and compliant operation:


1. Providing Clean and Safe Accommodation

As an AL owner, you must maintain your property to high standards. This includes:

  • Ensuring it is clean, well-maintained, and comfortable for guests.

  • Complying with all safety regulations, such as fire safety measures and proper maintenance of equipment and facilities.


2. Maintaining Accurate Records


It’s essential to keep detailed records of:

  • Bookings, including guest details and dates.

  • Income earned and expenses incurred for tax purposes.

  • Any additional documentation required by local authorities.


3. Managing Guest Relations

Effective communication with guests is a cornerstone of running an AL. Your responsibilities include:

  • Handling bookings, check-ins, and check-outs efficiently.

  • Being responsive to guest inquiries and addressing any issues during their stay.

  • Providing a positive and professional experience to ensure good reviews and repeat business.


4. Compliance with Local Laws

Stay informed about updates or changes to AL regulations, and ensure your property remains compliant. This includes:

  • Renewing your AL license as required.

  • Displaying the AL license number on all advertisements.

  • Adhering to new laws or safety requirements that may be introduced.

By fulfilling these responsibilities, you can ensure your AL operates smoothly, remains compliant with Portuguese law, and delivers an exceptional experience for your guests.

As an AL owner, you must maintain your property to high standards. This includes:

  • Ensuring it is clean, well-maintained, and comfortable for guests.

  • Complying with all safety regulations, such as fire safety measures and proper maintenance of equipment and facilities.


2. Maintaining Accurate Records

It’s essential to keep detailed records of:

  • Bookings, including guest details and dates.

  • Income earned and expenses incurred for tax purposes.

  • Any additional documentation required by local authorities.


3. Managing Guest Relations

Effective communication with guests is a cornerstone of running an AL. Your responsibilities include:

  • Handling bookings, check-ins, and check-outs efficiently.

  • Being responsive to guest inquiries and addressing any issues during their stay.

  • Providing a positive and professional experience to ensure good reviews and repeat business.


4. Compliance with Local Laws

Stay informed about updates or changes to AL regulations, and ensure your property remains compliant. This includes:

  • Renewing your AL license as required.

  • Displaying the AL license number on all advertisements.

  • Adhering to new laws or safety requirements that may be introduced.


By fulfilling these responsibilities, you can ensure your AL operates smoothly, remains compliant with Portuguese law, and delivers an exceptional experience for your guests.

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