Local Accommodation (AL) in Portugal has seen remarkable growth in recent years. However, to explore this business opportunity successfully and safely, it is essential to be aware of and comply with the legislation in force.
At Madeira Dream Stays, we have a deep understanding of these laws and are here to help. Here are some of the main things to consider.
Registering your Local Accommodation
The first step to operate an AL is registration in the National Tourism Register. This process, carried out exclusively through the Electronic Single Counter, requires prior communication to the competent municipal council. If there is no opposition from the council within 10 days (or 20 days in the case of hostels), a registration number is assigned. This is the only valid title for opening and advertising the AL.
Tax Obligations and Insurance
AL operators need to comply with tax obligations, including the opening of activity in Finance and the consideration of taxes such as IRS, IVA and IMI. In addition, it is mandatory to have insurance that covers fire risks and property and non-property damage caused to guests and third parties.
Local Accommodation Requirements
The legislation defines a series of general requirements that all ALs must comply with. These include adequate maintenance and operating conditions, hot and cold water, a window or balcony with direct access to the outside, adequate furniture and equipment, and hygiene and cleaning conditions.
There are also specific safety requirements, including the availability of fire extinguishers and first aid equipment, and the visible indication of the national emergency number.
Communication to SEF and Condominium
If you receive a foreign citizen, you must inform the Foreigners and Borders Service (SEF) through the Accommodation Bulletin. Furthermore, the opening of a hostel in a horizontally owned building requires the authorization of the other owners. Even in other types of AL, more than half of the owners (in terms of permil) can oppose the AL and cause its closure.
Navigating these regulations can be complex, but Madeira Dream Stays is here to help. We provide professional accommodation management services that can ensure full compliance with all regulations, allowing you to focus on providing a great guest experience.