Porto's New Task Force Targets Illegal Short-Term Rentals: What Investors Must Do Now
Investors in Porto's short-term rental (Alojamento Local or AL) market face a new regulatory reality. The city has launched a special working group to crack down on non-compliant properties, with thousands of operators at risk of having their licenses cancelled. This move directly impacts the profitability and legal standing of foreign-owned rental assets in the city.
What Foreign Investors Need to KnowThe primary targets are properties failing health and safety inspections and, crucially, those without mandatory civil liability insurance. As of late June, over 2,400 ALs in Porto were non-compliant on insurance alone. "The city is creating a system to act decisively," said a representative from the Short-Term Rental Association in Portugal (ALEP). "For an investor, an unexpected license cancellation could mean a loss of tens of thousands of euros in revenue." The new task force will analyze each case, but the direction is clear: greater scrutiny and stricter enforcement are here to stay.
Actionable Steps for Today's Buyer- Immediate Compliance Audit: Do not wait for a notification. Immediately verify that your property's insurance is registered and that all safety and habitability requirements are met.
- Budget for Compliance: Factor in the ongoing costs of legal and administrative compliance, including professional management fees, as a necessary operational expense.
- Review Property Management: Ensure your property manager is proactive about regulatory changes and has a flawless compliance record.
- Assess New Acquisitions Carefully: When considering a new AL property, due diligence on its existing registration status and compliance history is more critical than ever.
Explore opportunities with realestate-lisbon.com.
