Airbnb Letting in Portugal 2026: The AL Licence and the New Limits
Many central districts of Lisbon and Porto have stopped issuing new Alojamento Local short-term rental licences. What should investors check before buying if they intend to operate on Airbnb?
The model of “buy an apartment in Lisbon and run it on Airbnb” was once a common formula for international investors in Portugal. In 2026 that formula is no longer true by default — and a buyer who does not check the licensing carefully may end up holding an asset that cannot be operated as expected.
What is an Alojamento Local (AL) licence?
All lawful short-term letting in Portugal requires AL registration. The difficulty lies here: many central districts of Lisbon and Porto have suspended new licences in order to protect housing stock for local residents. An apartment without an AL licence cannot be let short-term lawfully — and there is no assurance that policy will be relaxed in the near future.
The pre-purchase checklist
- Does the property already hold a valid AL licence, and is that licence transferable to a new owner under the rules in force?
- Is the district in which the property sits currently suspending new licences?
- Do the condominium rules permit short-term letting?
- The tax obligations of the AL model compared with long-term letting — set against the 28% rate for non-residents.
The alternatives gaining ground
Medium-term letting (1–12 months) to international professionals and digital nomads is proving an effective middle ground: lawful, with steady demand and less exposure to seasonality. Traditional long-term letting benefits from the preferential tax treatment for long-term contracts. With Lisbon yields of 3.8–5% gross, choosing the right operating model determines most of the final outcome.
See the market analysis at Portuguese Property, or request a consultation for VNIS to check the letting status of the property you are considering.
The information in this article is for reference at the time of writing. It is not legal advice and no outcome is promised — immigration policy, tax rules and market conditions can change. For an assessment based on your family's specific circumstances, please request a consultation with the VNIS Investment team.