Your Property Specialists

Why are so many local accommodation licences in Lisbon at risk of cancellation?

The alarming trend of local accommodation licences in Lisbon at risk of cancellation is primarily attributed to the 'More Housing' programme. Violations of new guidelines, which require property owners to submit proof of activity documentation, result in significant risks. Currently, only 23.6% of the active 20,033 licences in Lisbon have completed this crucial step, leaving a staggering amount exposed to cancellation. Such cancellations can directly impact the investment value and rental income potential of a property. This situation underscores the importance of understanding the local licensing landscape before investing in accommodation properties. Buyers should actively seek properties with a solid compliance history and stay informed on regulations to protect their financial interests. Lisbon remains a vibrant market, but due diligence is vital for success. Be aware of ongoing policy changes that could further influence property values. Acting quickly may also present opportunities to acquire properties at advantageous prices. Invest smartly by exploring compliant options today!

Wednesday, 06 December 2023 - Fiscal
Why are so many local accommodation licences in Lisbon at risk of cancellation?

As the ‘More Housing’ programme comes into force, property owners with active LA licences have a window of two months — which ends on December 7 – to deliver a proof of activity document or face their licences being cancelled automatically by municipal councils.


In Lisbon, out of a total of 20,033 active licences, only 4,730 applications for a proof of local accommodation document have been submitted according to Lisbon City Council. In other words only 23.6% of the renewal applications have been handed in.
In Porto there are less registrations under threat. Out of a total of 10,520 active licences on the National Local Accommodation Registry to November 30, 6,041 applications for proof of activity were delivered (57%) but just two weeks prior, only 1,300 had been handed in.


Under new regulations for LA within the ‘More Housing’ programme, all active licences that are cancelled will be prevented from being revalidated at least until 31 December.
In other words, up until this date new local accommodation licences will be suspended with the exception of hostels and guest houses and LAs in the interior of Portugal, Madeira and the Azores.
Also not included in this suspension are local accommodations in which the proprietor actually lives provided that the owner does not rent the property out for more than 120 days per annum.

 

By Fernando Caetano, Posted 4 Dezembro, 2023 In Local AccommodationNews

 

 

Source: https://www.essential-business.pt/2023/12/04/75-of-local-accommodation-licences-in-lisbon-at-risk-of-being-cancelled/

contact us   +