Alojamento Local licence in the Algarve: the complete owner''s guide
Renting a property to holidaymakers in the Algarve requires an official registration: the Alojamento Local (AL) regime. The process is simpler than most owners fear, but a few steps trip up foreign owners. Here is the full path, in order.
1. Check your property qualifies
An AL establishment provides temporary paid accommodation outside the hotel regime 1. The available categories are house (*moradia*), apartment, hostel and rooms.
Two checks first:
- Use classification must be residential, with a valid habitation licence.
- Containment zones: some municipalities can limit new registrations in saturated neighbourhoods. Inland Algarve (Paderne, Algoz, Tunes, Loulé) is not affected, unlike some heavily touristic centres. Always confirm with the relevant town hall — rules differ per municipality.
Good news: the national freeze on new registrations and the CEAL extraordinary levy introduced by the *Mais Habitação* programme were revoked by Decreto-Lei no. 76/2024 3, and registrations are no longer time-limited as the previous text foresaw.
2. Get condominium consent (apartments)
This is the step that surprises owners most. For an apartment, the condominium assembly can object to AL use. In practice:
- ask before buying if the rental plan is decisive;
- get the assembly decision in writing;
- a detached house with land is not concerned — one reason inland Algarve properties are easier to license.
3. File the prior communication (Balcão Único Digital)
Registration is filed online through the *Balcão Único Digital* as a prior communication addressed to the town hall 1. You receive an AL number immediately, then an opening title once the objection period has passed.
Prepare: Portuguese tax number (NIF), proof of ownership or the owner''s authorisation, a floor plan with capacity, civil liability insurance, and a business activity declaration with the tax authority (category B).
4. Duties once licensed
| Duty | Detail | |---|---| | AL number in listings | Required on Airbnb, Booking and your own site | | Identification plate | Outside the property | | Electronic complaints book | Online registration required | | Civil liability insurance | Covering guests and third parties | | Foreign guest reporting | Through SIBA, to AIMA | | Fire extinguisher, fire blanket, first-aid kit | Minimum safety equipment | | Tourist tax | Depends on the municipality |
5. Tax: plan ahead
AL income falls under category B. Under the simplified regime only a portion of turnover is taxed, and that portion depends on the property type and location. Rates and coefficients have changed several times since 2023, so have a Portuguese accountant validate your situation before the first filing.
Non-residents should remember three things: the NIF requirement, a fiscal representative in some cases, and filing in Portugal in addition to your country of residence (tax treaties prevent double taxation, they do not remove the filing duty).
6. Time and cost
Expect a few days for the online registration itself, a few weeks where condominium consent or a habitation licence fix is needed, and modest administrative fees — most of the budget goes to insurance, safety compliance and accounting support.
In practice
The AL licence is not an obstacle, it protects your business. What actually blocks owners is handling the town hall, the condominium and the accountant remotely, in Portuguese.
That is precisely what we handle for the owners we work with: file preparation, submission, bringing the property up to standard, then full rental management. If you are planning a project in the Algarve, tell us about the property — we will first tell you whether it can be rented on good terms.
*General information, current as of September 2026. It does not replace advice from a Portuguese lawyer or accountant. Sources: gov.pt 1, Turismo de Portugal 5, Decreto-Lei no. 76/2024 6.*