Rental License

What you need to know when renting your property:

According to the Lodging Law in Portugal, rental properties must be fully licenced in order to carry out the business activity of renting accommodation to paying guests.

Property owners are required to register as a sole trader and apply for a Rental licence.

Rental Licence , also known as ‘AL’ licence (‘Alojamento Local’):

The rental or ‘AL’ licence is obtained from the local town hall for a reasonable fee.

Whilst the fee is a one-off cost, non-compliance may result in heavy fines, as ever increasing inspections are being carried out by the local authorities.


To install fire, health & safety equipment:

  • Fire safety: fire blanket, extinguisher, smoke detector and safety signage.
  • Health & Safety: first aid kit, glass door and no smoking signs.

The ‘AL’ plaque is optional but a complaints book is mandatory.


The owner must register as a sole trader with the tax office.

Fiscal representatives and accountants provide these services for a fixed annual fee.

They will be able to register the business activity with the tax office and handle any tax related matters on your behalf, i.e., issue receipts of paying guests and submit your tax return at the end of each year with the declared rental income.

After the registration, the next step is to apply for the rental licence at the local town hall. The owner will be required to submit the business registration form issued by the tax office, personal identification and property documents. Once the process is completed the ‘AL’ identification number will be issued for tourist activity to take place.

The property manager or fiscal representative can help deal with local authorities and handle the rental licence process, from the application to the inspection of the property. The inspection is carried out by the town hall inspectors to ensure compliance with health & safety regulations.

To avoid tax evasion, the property owner is required to notify the Tax and Customs Authority (‘SEF’ – Immigration and Borders Service) of the information pertaining to paying guests, on the date of arrival.

The property manager is able to provide this service, deal with guests and make sure the required data is collected on arrival and remitted to the Customs Authority (‘SEF’ – Immigration and Borders Services), and to the fiscal representative to issues the receipts.

Feel free to contact See You Soon for more information and contact details of a reliable fiscal representative or accountant.