A recent decree approved by the Portuguese government is set to significantly change the country’s short-term rental regulations, reversing some of the stricter measures introduced by the previous Socialist administration.
The previous government’s “More Housing” package had granted condominium residents a veto power over short-term rentals within their buildings, requiring a two-thirds majority vote from the condominium assembly. However, the new legislation aims to make it more difficult for residents to prohibit short-term rentals.
This significant shift in legislation had a direct impact on apartment sales during the first part of 2023. With the new restrictions on short-term rentals, potential investors faced uncertainty about the profitability of their property investments. Consequently, there was a noticeable decline in apartment purchases as investors became more cautious. (Read my latest market report)
Under the new rules, condominium owners will now be required to provide concrete evidence of disturbances caused by the short-term rentals in order to successfully oppose their existence. This opposition must be supported by a well-founded decision, demonstrating that the rentals are disrupting the normal use of the building or causing inconvenience to neighbors. The evidence will then be forwarded to the mayor, who will have the final say on whether to shut down the short-term rental.
This could bring some optimism and positively impact the market for apartments sales that was severely impacted since the adoption of the “Mais Habitaçao” plan.
Key points of the new law:
- Weakened veto power: Condominium owners will have less power to block short-term rentals.
- Burden of proof: Residents must prove that the rentals are causing disturbances.
- Municipal involvement: Mayors will have the final decision on closing down short-term rentals.
- Mediation: Mayors can mediate disputes between residents and short-term rental operators.
- Time limits: If a short-term rental is shut down, the ban will have a maximum duration of five years.
- Municipal authority: Municipalities will have more power to regulate short-term rentals in their areas.
- New role: A “short-term rental ombudsman” will be created to help resolve disputes.
Source: https://zap.aeiou.pt/governo-tirar-veto-condominos-alojamento-local-621504
