Rental Licenses Portugal
Touristic License, also known as a Rental License, Rental Permit, or more correctly in Portuguese as a “Licença de Alojamento Local” or “Licença de Utilização Turística”.
If you are renting your Portuguese property on long or short term lets, it has been a legal requirement since the 25th June 2008 to have a Touristic License on the property. Obtaining the license can be fraught with problems, particularly if you do not speak the language - but ignoring this law could result in unlimited fines in certain cases.
The central government has laid down a list of basic criteria that a property must fulfill prior to being deemed suitable for licensing but this has been massively complicated by each local authority (Câmara Municipal) adding further requirements to the basic list, as they see fit. Each Câmara Municipal also sets their own fee structure for the license, so there are few standards that can be applied to this procedure, except that the license will be valid for eight years before renewal is required.
However, help is at hand...
We now have a local team of experts throughout the Algarve who are well acquainted with the new legislation and can help you from the application stage, right through to completion of the process, when the license will be granted by the local Câmara Municipal.
The Portuguese central government is applying a carrot and stick approach...
The State Control Authority of Economic Activities (Autoridade de Segurança Alimentar e Económica - ASAE) has already carried out a number of inspections of private property rented out as holiday lets in the Algarve and it has made it clear that these inspections will be stepped up throughout 2009 and beyond. Property owners without the obligatory license (Licença de Utilização TurÃstica) have already been subjected to hefty fines on the basis that their property has been deemed illegal.
However, on the plus side, owners who apply for the Touristic License will benefit from state-backed promotional and advertising initiatives. Additionally, the government is due to launch a National Register of Tourist Resorts, that will provide information on the availability of accommodation and will advise tourists of the licensed status of rental accommodation listed on the register.
Obtaining a Touristic License will be an advantage for owners trying to sell their property.
If you are currently trying to sell your property in Portugal, obtaining a Touristic License will give you a significant advantage over owners of similar property which may be un-licensed. Our experience is that the vast majority of people buying property in Portugal have every intention of renting out their dwelling in order to subsidise their running costs. The relatively small investment that will be required to obtain your license could be repaid many times over by a higher sale price of your property, or a quicker sale.
A note for developers :
Once you have obtained a Licença de Utilização (Users Licence) for your property, you will be able to apply for a Habitation License (Licença de Habitação) but a Touristic License (Utilização Turística) can be applied for instead of a Habitation License and will make your property more attractive to a potential buyer. The cost of applying for each license is similar but of course the Touristic License does have additional requirements that would require a slightly higher initial investment.
So what is the criteria for obtaining a Touristic License?
In order to apply for the Tourist License your Villa, townhouse or apartment is subject to the following requirements:
- Buildings must be in generally good condition inside and out.
- The property must be connected to mains water, a sewage network, or have its own systems in place, in accordance to its needs.
- The dwelling must have hot and cold running water.
- The property must have windows connecting them to the outside, allowing for ventilation.
- The dwelling must have furniture, equipment and utensils in accordance to the property’s capacity and needs.
- There must be adequate locks on outside doors and on bathroom doors.
- There must be one bathroom available for each three bedrooms and this should include a lavatory, basin and a bath or shower.
- There needs to be statutory information regarding the rules and regulations pertaining to the use of the property.
- Cleaning and a change of linen should be made available once per week (as a minimum requirement) and whenever new guests arrive.
- There should be adequate fire extinguishers in the property and a fire blanket in the kitchen(s).
- A first aid kit must be made available and information provided to indicate the 112 emergency number.
- Instruction manuals for the equipment existing in the property must be made available to guests.
- There should be adequate safety measures in place around swimming pools.
- An official complaints book should be made available in the property.
How long does it take to obtain a license?
We have developed a process that provides owners with a cost-effective method of successfully obtaining a Touristic License for their property. If there are no problems or delays, a license should be granted in around four to six weeks after application, although we cannot make any guarantees as to how long a license may take to secure from your particular Câmara Municipal. There are many variables, not least the provision of various documents that you may be asked to provide. However, we can assure you that our team of experts are Portuguese by birth, or speak fluent Portuguese and are used to dealing with the idiosyncrasies of local government departments. They also have a thorough understanding of the Touristic Licensing legislation and the minimum requirements to expedite a successful conclusion to your application.
How to start the process...
To discuss this further please contact us on +44 (0)1737 244442 or click here and we will contact you
Or alternatively, apply for a quotation by completing the following details
