Changes to AL Legalisation

Amendments to the Legal Framework for Local Accommodation The recently published Decree-Law no. 76/2024 introduces significant amendments to the legal framework governing Local Accommodation (hereinafter “AL”), which will come into force on 1 November 2024. These changes aim to consolidate the AL sector in a balanced manner with the housing market and to recalibrate rights of private initiative, private property, and housing, while simultaneously promoting sustainable tourism. Among the main changes introduced by this decree is the revocation of certain provisions established by the “Mais Habitação”, which had been contested by operators in the AL sector. These revoked provisions included the term and mandatory renewal of AL registrations, the suspension of new registrations for apartments and hosting establishments within independent units nationwide (except for areas designated as interior territories in Portaria no. 208/2017 from 13 July), the requirement to renew AL registrations in 2030, and the expiry of inactive registrations. Furthermore, Decree-Law no. 76/2024 eliminates the need for condominium authorization for the operation of AL activities in independent units designated for residential use on the respective horizontal property deed. This change removes the requirement to submit a deliberation from the condominium assembly approving the installation of an AL in an independent unit as part of the prior communication required for registration – except for hostels. Regarding condominium powers, the decree also removes the option for condominiums to oppose AL activities without a justified basis. Condominium assemblies may now oppose such activities only through a reasoned decision approved by more than half of the building’s total percentage, and only if it is based on repeated and proven disruptive acts or acts that disturb residents’ rest. In these cases, after reaching such a decision, the condominium assembly must request a ruling from the president of the competent town hall who, instead of canceling the AL registration, may invite the parties to reach an agreement with defined terms and conditions. Additionally, the decree in question restores the municipalities authority to strategically regulate AL activities within their territories. This includes the ability to create their own regulations defining containment areas and sustainable growth areas and imposing limitations on the transfer of AL registrations for houses and apartments, except in cases of inheritance, gratuitous transfer between spouses, civil partners, ascendants, descendants, and in cases of divorce, judicial separation, or dissolution of civil partnerships. In this respect, to ensure the effectiveness of the above-mentioned municipal regulation, town hall may suspend the issuance of new AL registrations in specifically designated areas for a maximum period of one year, until the regulation comes into force. Finally, and without prejudice to other amendments and clarifications introduced by Decree-Law no. 76/2024, it should be also noted that article 6-B has been added to the legal framework governing AL. This new provision seeks to clarify the path for defining valid and compatible uses for properties for AL activities. In this regard, the municipalities are the ones that must establish such uses — within the limits set forth in the decree law —leaving it to each town hall to establish these uses in their own regulations. If such does not occur, the uses deemed compatible by the town hall will be allowed, including those authorized under the Regime Jurídico da Urbanização e Edificação or others that the municipality deems compatible with AL activities. Furthermore, it is clarified that, without prejudice to any potential prohibition of AL activity in the horizontal property deed, condominium regulations, or a subsequent decision by the condominium assembly (to be approved by a majority representing two-thirds of the building’s ownership percentage and only effective for the future), the installation and operation of AL establishments in an independent units do not constitute a different use under subparagraph c) of paragraph 2 of article 1422.º of the Civil Code.