Here's What You Should Know About Alojamento Local in 2025

If you're thinking about renting your home, apartment, or even just a few rooms in the Algarve, Alojamento Local (AL) is the official way to do it legally and earn income from short-term stays. 

What Is Alojamento Local (AL)?
Alojamento (AL) is officially defined as an establishment that provides temporary accommodation services to tourists, for a fee, without meeting the requirements to be classified as a tourist enterprise. 

In plain terms, if you’re renting out a place short-term to guests and charging for it, and it’s not an officially licensed tourist complex, it likely qualifies as an AL and needs to be registered.

What's New in 2025?
In 2025, important changes were introduced:

• The suspension on new AL registrations for apartments and lodging establishments has been revoked. Registrations are no longer limited to 5 years.
• You no longer need condominium approval to register AL units in buildings with horizontal property — except for hostels.
• Rules for seasonal rentals (up to 120 days/year) and the Extraordinary Contribution on Local Lodging (CEAL) have been eliminated.
• You can now transfer AL registrations again, though some limits may apply in containment areas.
• Municipalities can now create special zones with stricter local rules to ensure AL growth happens in a controlled and strategic way.
• A new figure — the “local accommodation provider” — will help mediate conflicts between hosts, residents, and condo associations.
• Condo assemblies can no longer directly cancel an AL registration. They can oppose it, which may support a cancellation by the municipality, or lead to a mediated agreement.
• New Deadlines to Oppose Registrations: 60 days to oppose a new AL registration and 90 days in containment areas
• The expiration date of mandatory insurance is now published in the RNAL (National AL Registry). Lack of valid insurance can lead to cancellation.
• The law now clearly defines what types of building use are compatible with AL operations.

How to Register Your Alojamento Local
You’ll need:
- Your ID + Portuguese tax number (NIF or NIPC)
- Land registry document
- Lease agreement (if applicable)
- Proof of business registration
- Written commitment to meet AL rules
- Condo permission (if applicable)

Capacity Rules for Alojamento Local 
Here’s how many people you’re allowed to host:
- Max 9 rooms / 27 guests per AL
- If renting rooms in your home: 3 bedrooms max
- Hostels can have more but follow different rules

You can increase capacity slightly by adding 2 guests in the living room and/or using up to 2 extra beds for kids under 12

Property-Specific Limits
Houses: max. guests = (number of bedrooms × 2) + 2 (for the living room)
Apartments: same as houses, but only 9 AL units or 75% of the building allowed
Private rooms in your home: max. 3 bedrooms
Hostels: number of rooms × 2, or number of beds in a dormitory 

We’ve covered the basics, but there’s still more you should know, like structural and safety requirements, taxes and keeping everything in order.

Check out our Alojamento Local Guide to help you get started and stay on track.