Analysis of Decree-Law No. 76/2024, of October 23.
Decree-Law No. 76/2024, published on October 23, introduces significant changes to the legal framework governing the operation of short-term rental establishments, revising and complementing Decree-Law No. 128/2014, of August 29.
The changes reflect the growing concern about the impact of the proliferation of short-term rentals, particularly in urban areas with high tourist density, and aim to balance the needs for permanent housing with the promotion of sustainable tourism. In this context, the changes seek to give municipalities greater control, strengthen the protection of condominium owners and residents, and intensify the monitoring of the activity.
1. Granting Powers to Municipalities
One of the most significant changes introduced by the new law is the expansion of powers granted to municipalities, particularly those with more than 1,000 registered local accommodation establishments, which will now be able to regulate the exercise of this activity locally.
Through regulations, measures appropriate to the local reality may be imposed, aiming for a balance between tourism activity and housing needs.
The figure of the "local accommodation ombudsman" may also be created, with the competence to mediate conflicts between local accommodation operators, condominium owners, and residents, handle complaints, and promote best practices in the exercise of the activity.
2. Areas of Containment and Sustainable Growth
The concept of "containment areas" is introduced, allowing municipalities to designate zones where the installation of new short-term rental establishments is prohibited or restricted. This measure is particularly relevant in areas where the high concentration of establishments has already affected the housing balance.
On the other hand, "sustainable growth areas" are created, where municipalities may establish additional requirements, such as the need for energy efficiency in buildings or the preservation of a minimum percentage of properties designated for permanent housing. This initiative strengthens the need to align tourism activities with the environmental and social sustainability of communities.
3. Stricter Rules for Horizontal Property
Another area of intervention in the new law is the strengthening of the protection of the rights of condominium owners in buildings with horizontal property. The installation of hostels in buildings that contain residential units will now require the express authorization of the condominium owners, representing a significant increase in the autonomy of the owners in managing the buildings where they live.
Additionally, condominium owners can oppose the continuation of local accommodation activities in individual units when there is repeated disturbance of peace and coexistence in the building, through a resolution passed by a qualified majority of two-thirds of the share capital.
It is also important to highlight that the new legislation clarifies that the establishment of local accommodation in an individual unit does not, by itself, constitute a change in the intended use of the unit, as long as it remains in line with the predominant urban uses in the respective area.
Thus, although condominium owners may exercise their right of opposition, this activity remains considered legitimate within the scope of horizontal property, unless otherwise provided in the constitutive title or condominium regulations.
4. Inspection and Registration Cancellation
The ASAE (Food and Economic Safety Authority) and the municipal chambers will play a more active role in monitoring local accommodation establishments, ensuring compliance with the applicable regulations and the observance of restrictions imposed by municipal regulations. If a violation of legal or regulatory provisions is detected, the municipalities may proceed with the cancellation of the establishment's registration, thus strengthening the control over the legality of the activity.
A new requirement introduced by the new regime is the obligation for local accommodation establishments to have civil liability insurance. The lack of adequate insurance can even lead to the immediate cancellation of the establishment's registration, highlighting the legislator's intention to ensure that industry operators take responsibility towards third parties.
5. Transition Measures
The legislation provides for a transition period for municipalities with more than 1,000 registered local accommodation establishments. These municipalities will have a 12-month period, starting from the entry into force of the decree, to decide whether they will exercise the regulatory power granted to them.
By granting more powers to the municipalities, strengthening oversight, and increasing protection for residents, the legislation aims to ensure that the growth of local accommodation is sustainable and in harmony with local communities. These changes reflect a long-term vision for the sector, placing social and housing balance at the heart of urban planning policy.
Cristiana Toscano
Department of Real Estate and Tenancy Law
cristiana.toscano@amartins.pt
