New Legislation Empowers Municipalities
Municipalities in Portugal now have the authority to set their own regulations for short-term rental accommodations (AL), as per a new decree-law published in the Diário da República. This marks a significant shift in decentralizing control over the management and registration of short-term rentals.
Decentralization of Competencies
The government had previously announced plans to give municipalities the power to regulate short-term rentals, allowing them to decide whether to terminate rentals in residential buildings. Instead of enforcing immediate cancellations, local authorities can now work with stakeholders to find solutions.
Specific Conditions for Registration Cancellation
The law also clarifies the conditions for canceling rental registrations, filling gaps in the previous legislation. Cancellations can occur for reasons such as lack of mandatory insurance or repeated disturbances affecting the building's normal use.
Capacity Limits and New Provisions
The decree maintains the previous limit of nine rooms and 27 guests for short-term rentals, but adds flexibility, allowing hostels and some rooms to include convertible or supplementary beds, provided they don’t exceed 50% of fixed beds. The new law which ammends legislation from ten years ago, will be applicable in 90 days.
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