Effective from November 8th, 2019, the Municipal Regulation for short term rentals in Lisbon adds new containment areas to those that were already in force (Alfama, Mouraria, Castelo, Bairro Alto, Madragoa, Graça, Colina de Santana). With that said, as of this date, it is now forbidden to grant new licenses also in:

  • Baixa;
  • Avenida da Liberdade;
  • Avenida da República;
  • Avenida Almirante Reis

In addition to these new areas, the Regulation also presents some changes in the way which absolute containment areas are defined, reducing the ratio between short term rentals and residential accommodation in a given area from 25% to 20%.

Another change is that the areas of Graça and Bairro das Colónias are now considered to be relatively within the containment areas (ratio between short term rentals establishments and number of dwellings equal to or above 10 and below 20%), with a limited allocation of new licenses.

However, there are still some exceptions, in addition to those set out in the previous document on short term rentals containment areas:

“Recognizing the importance that this activity has in the economy of the city and, in particular, in urban rehabilitation, it was admitted, by way of exception, the possibility of being assigned new registrations of short term rentals, provided that for the property in question there have been no urban lease contracts for housing purposes in the last 5 years.”

As can be seen, the trend is that the City Halls of the main cities continue to tighten the siege on the issuance of new licenses, which ends up forcing the management companies to look for alternatives, such as Feels Like Home’s monthly rental service, for example.

If you need help to understand if you can ask for a new license or to know more about the possible alternatives to make your house profitable, you must talk to us.

Feel free to download our ebook and find all the information you need to ensure that your home meets all the legal and tax requirements of the short-term rental law in Portugal.


Guide short-term rental Portugal