One of the first steps is to obtain the AL license and, to do this, it is essential that you know what all the requirements are for the viability of this type of business.

idealista has put together a comprehensive guide to help people navigate the paperwork and rules.

Types of AL

There are different types of Local Accommodation (AL) in Portugal that vary according to the type of property and service offered. The main types of AL are the following:

House: accommodation whose unit consists of an autonomous, single-family building. This modality can be rented entirely to a single group of guests;

Apartment: accommodation whose unit is made up of an autonomous fraction of a building or part of an urban building capable of independent use. Just like the house, the apartment is rented entirely to a single group of guests;

Accommodation establishments: accommodation establishments whose accommodation units are made up of rooms, integrated into an autonomous fraction, in an urban building or part of an urban building capable of independent use. This modality may use the name “hostel” when the predominant accommodation unit is a dormitory, that is, when the number of users in dormitories is greater than the number of users in rooms. In accommodation establishments, guests can rent individual rooms, sharing common areas with other guests;

Rooms: accommodation operated in the holder's residence (corresponding to their tax residence), with the accommodation unit being no more than three rooms.

What are the capacity limits?

The capacity limit for a property to be considered an AL in Portugal is stipulated by legislation, which defines the maximum capacity for each type of accommodation.

According to the legal regime for Local Accommodation, the maximum capacity of this type of establishment is 9 rooms and 30 users, with some exceptions:

“Hostel”: no capacity limit, but must respect adequate safety, hygiene and comfort conditions for guests. Capacity must be appropriate to the space and facilities available;

“Rooms”: modality that can only have three, in the holder’s residence.

For houses and apartments, it is possible to accommodate two more users in the room, in accordance with INE (National Institute of Statistics) indicators, and for all types of accommodation, up to two additional beds can also be installed for children up to 12 years old (if there are habitability conditions for such).

These capacity limits for AL accommodations are critical to ensuring business viability and compliance with legislation and safety requirements. This way, you will be able to apply the best hospitality practices to ensure success with your accommodation.

Mandatory requirements

The mandatory requirements for a property to be considered Local Accommodation vary according to the type – accommodation establishment, apartment, house or rooms.

General requirements

Local Accommodation establishments are required to have access to the public water and sewage network, access to cold and hot running water and have conditions for the conservation and operation of facilities and equipment.

Each housing unit in the AL establishment must have:

Window with direct access to the outside for ventilation;

Adequate furniture, equipment and utensils;

System that allows you to block the entry of external light;

Doors equipped with a security system for user privacy;

In relation to private sanitary facilities or those common to several units, the following requirements must be met:

Have a security system that guarantees privacy;

In apartments, houses and rooms, establish at least one sanitary installation for every four rooms and cumulatively a maximum of 10 bathrooms.

In the case of hostels and guesthouses, the sanitary facilities common to several rooms, and which are not separated by gender, must have separate toilets separated by doors with security systems that allow privacy and must have a toilet, a washbasin and a shower for every six users sharing this facility.

All properties must comply with these general requirements to be eligible for Local Accommodation activity and meet all appropriate hygiene and cleaning conditions.

Security requirements

Security requirements are essential to ensure guest safety and compliance with legislation. These requirements also vary according to the AL modality, but in general, managers must comply with the following security requirements:

Fire extinguisher and blanket;

First aid equipment;

Indication of the national emergency number (112).

For Local Accommodation establishments with a capacity equal to or greater than 10 users, you must include the safety rules against fire risks in accordance with Decree-Law No. 220/2008, of November 12th and Technical Regulation contained in Ordinance No. 1532 /2008, December 29th.

Other requirements

Before opening your Local Accommodation to the public, there are other requirements that you must consider, such as:

AL identification plate that must be affixed, with the exception of houses;

Complaints book, an important element that shows transparency to those who visit your accommodation

Information book with accommodation rules, information on the operation of the establishment and the contact details of the person responsible for the establishment;

Civil liability insurance that guarantees compensation for material and bodily damages that may be caused to third parties (including guests), resulting from the activity of providing Local Accommodation services.

Starting an activity in the AL sector can be a challenging process, but having the necessary information before communicating prior registration is essential to guarantee the viability of the business.

Once you have your AL license you will have other types of obligations such as communicating foreign guests' data to SEF, automatic billing, charging tourist taxes, among others.