Local Accommodation

Decree-Law no. 76/2024, of October 23, changed the legal framework for the operation of local accommodation establishments.

The new rules, in force since November 1, 2024, include the following:

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• Municipalities are given a role in regulating the activity.

Municipalities can approve an administrative regulation on the activity of local accommodation in their territory.

These regulations may provide for the appointment of a local accommodation Ombudsman to assist the municipality in managing disputes between residents, owners of local accommodation establishments and owners or third parties with counter-interests.

A new figure of 'sustainable growth areas' is created, in which municipalities can impose limits on the number of new local accommodation registrations allowed for each of these areas, depending on factors such as the housing and environmental pressure they face.

• Repeal of the articles of the law that provided that the registration of local accommodation establishments is personal and non-transferable, or that the registration is valid for 5 years.

• Repeal of the suspension of new registrations of local accommodation in autonomous fractions in the form of apartments and lodging establishments.

• Repeal of the Extraordinary Contribution on Local Accommodation (CEAL).

• It is no longer compulsory to submit the minutes of the condominium owners' meeting to authorize the exercise of local accommodation activity in an autonomous fraction that is intended, in the constitutive title of the horizontal property, for housing. This obligation is, however, maintained for Hostels.

• The activity of local accommodation may be prohibited in a Regulation that forms part of the constitutive title or by means of a subsequent resolution of the condominium owners' meeting to be approved by a majority representing two thirds of the building's permillage.

• It is clarified that the installation and operation of local accommodation establishments in an autonomous fraction does not constitute a use other than that for which it is intended under the terms and for the purposes of Article 1422 (C) (2).

• The Mayor of the municipality with territorial jurisdiction may decide, preceded by a prior hearing, to cancel the registration of the respective establishment, when there is repeated and proven practice of acts that disturb the normal use of the urban building.

• In the event that the local accommodation activity is carried out in an autonomous fraction of a building, or part of a building that can be used independently, the condominium owners' meeting may oppose the exercise of the local accommodation activity in said fraction, by means of a reasoned resolution approved by more than half of the building's permillage, based on the repeated and proven practice of acts that disturb the normal use of the building, as well as acts that cause nuisance and affect the rest of the owners, requesting a decision from the Mayor of the municipality with territorial jurisdiction.

At Over the Sea (OTS), we have a team of experts specialised in Real Estate Law. We are available to help you understand the Local Accommodation Legal Framework, taking into account your specific circumstances, and to develop a tailored solution to meet your needs.

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