Property investors in the Algarve are being urged to act fast, as Portugal’s local accommodation (AL) sector faces a regulatory shake-up. Around 70,000 AL registrations are now at risk of cancellation due to missing legal documentation, such as valid liability insurance.

“The risk of cancellation has never been so high,” notes a recent update from authorities, with Lisbon alone accounting for over half of its 19,000 AL listings being flagged as non-compliant.

For investors in the Algarve, where holiday rentals are a major source of income, these developments raise urgent questions. Having your AL license cancelled means losing the right to operate short-term rentals.

“Owners who fail to comply will see their registrations revoked,” warn municipal authorities. And while some cases may allow for reactivation, the process can be slow and costly.

The tightening of local accommodation regulations changes may push out non-compliant operators, but they also present an opportunity for serious investors by ensuring their properties meet all legal requirements and by delivering a reliable, quality experience to guests.

Working with a reputable holiday rental company can be a game-changer, helping navigate compliance, manage bookings and maintain guest satisfaction.

And with the support of an experienced local estate agent like Algarve Home Sales, property owners can make informed decisions that keep their investment secure and profitable in the long run. Contact the team today.