The Local Accommodation (LA) market in Portugal continues to evolve, and with the recent changes introduced by October 2024 legislation, property owners need to be up to date on the new rules that directly impact this activity. Decree-Law 76/2024 brought significant changes with the aim of balancing tourism and affordable housing, as well as ensuring more sustainable management of the property market. In this article, we explore the main points of this new legislation, the challenges and opportunities for property owners, and how BeHappy Algarve can help you adapt to the changes and maximise the profitability of your investments.

Main Updates to the New Legislation

The new legislation has brought several highlights that all owners should consider when managing or planning to start a Local Accommodation. Here are the most important ones:

1. Municipality Autonomy

Municipalities now have greater authority over the management of Local Accomodations in their territories. They can now define areas of containment – zones where the issuing of new licences can be suspended or limited – as well as areas of sustainable growth, encouraging activity in less saturated locations. This measure aims to balance the supply of traditional housing and the growth of tourism, especially in areas with greater property pressure, such as large cities and tourist regions, including the Algarve.

2. Transferable Licences

One of the most anticipated updates for property owners was the possibility of transferring local accommodation licences. This means that, should you wish to sell or transfer the management of your property, the local accommodation licence will accompany the property, offering greater flexibility and increasing the property’s value on the market.

3. Licence Term

Local Accommodation licences no longer have a defined expiry date. This update brings greater security for owners, cutting out the need for periodic renewals and simplifying administrative management.

4. Condo’s Roles

Condominiums now have more influence over the installation of new local accommodation. With the approval of the majority of condominium owners, it is possible to oppose the opening of local accommodations in residential buildings. This change reinforces the importance of good relations with neighbours and strict compliance with the rules of conduct in buildings.

5. Maximum Capacity

To ensure the quality of service and the safety of guests, the maximum capacity of Local Accommodation has been limited to nine rooms or 30 guests. This measure focuses on sustainability and proper management of the establishments.

 

Impacts on Local Accommodation Owners

These updates represent both challenges and opportunities for owners. The greater autonomy of municipalities could mean more restrictive regulations in certain areas, but it could also create fiscal and operational incentives in less explored zones, favouring the diversification of tourism. The transferability of licences, on the other hand, is a positive point for those who want to increase the value of their property for sale or transfer. The elimination of licence expiry dates reduces bureaucracy and offers greater stability for businesses. However, owners wishing to open new establishments should be aware of the new rules and areas of contention, strategically planning their investment to avoid surprises.

How Can BeHappy Algarve Help?

BeHappy Algarve is a reliable partner for property owners who want to make the most of the opportunities in the Local Accommodation market, especially in this new legislative context. With complete and personalised management, we help our clients face the challenges and maximise their profits.

Our Services Include:

  • Legal Support: If you don’t yet have a Local Accommodation licence, our team will help you through the entire bureaucratic process to ensure that your property complies with the new rules.
  • Complete Operational Management: We take care of everything – from booking management, check-in/check-out, maintenance, to professional cleaning.
  • Performance Reports: We monitor the performance of your property, helping you make informed decisions to increase profitability.
  • Personalised Support: We are available to answer questions and offer support at all stages of management.

New Licences: The Opportunity of the Moment

An important development in the Local Accommodation market is the new licences that have now been granted. This is an excellent time for anyone wishing to invest in the sector or expand their property portfolio. With the legislative changes, having an experienced and knowledgeable team like BeHappy Algarve is essential to ensure the success of your investment.

Conclusion: Adapt and Thrive in the Local Accommodation Sector

The new rules on Local Accommodation bring significant changes, but they also represent opportunities for owners who are willing to adapt and take advantage of this moment to grow. At BeHappy Algarve, we are ready to help you navigate this scenario with confidence, ensuring that your property is managed efficiently and within the legal regulations. Whether you’re just starting out in the market or want to optimise the management of your property, trust in BeHappy Algarve’s experience and leadership in the Local Accommodation sector.

Contact us or visit our website to find out more about how we can turn your property into a profitable investment.

Note: This article is for information purposes only and is not a legal replacement for professional legal advice.