Portugal tightens STRs

Portugal is shrinking its short-term rental market as city halls and the national registry strike inactive licenses, cutting thousands of permits from Lisbon’s books and tightening supply before the 2026 summer season. (rr.pt) In Lisbon, the city said 6,765 local accommodation registrations were canceled out of about 19,000, leaving 11,779 active as of February 1, 2026. The cancellations followed a cleanup of licenses that lacked required insurance records. (rr.pt) Portugal calls short-term rentals “alojamento local,” or local accommodation, and operators must register before renting to tourists. Under the current system, the municipality can oppose a registration within 10 days, or 20 days for a hostel. (gov.pt) The legal framework shifted on October 23, 2024, when Decree-Law No. 76/2024 rewrote the rules and handed municipalities broader powers over licensing, regulation and enforcement. The decree says local governments should decide how to balance tourism activity with housing conditions in their own territories. (diariodarepublica.pt) One practical trigger for the purge was insurance. Portugal’s government service says hosts must submit proof of civil liability insurance to keep a registration valid, and that proof must be updated when the policy is renewed or changed. (gov.pt) Porto moved on a parallel track earlier. On November 1, 2024, Porto’s municipal assembly approved a six-month suspension of new local accommodation licenses in the historic center parishes and Bonfim while it studied a new regulation. (zap.aeiou.pt) The national market is still large, but the direction has changed. Tourism Review reported on April 13, 2026 that Portugal’s registered short-term rentals had fallen from nearly 126,000 in late 2025 to about 119,000 by April 3, with industry estimates pointing below 90,000 after more removals. (tourism-review.com) Portugal is making these changes while tourism remains strong. The National Statistics Institute said the country posted preliminary record highs for guests and overnight stays in 2025, and it reported 1,664,918 guests in tourist accommodation in January 2026. (ine.pt) Critics on Lisbon’s left say the cleanup does not automatically free homes for residents. Bloc councillors said removing inactive licenses could reopen space for new registrations, including in containment zones, and keep pressure on housing prices. (rr.pt) Supporters of the cleanup say the registry had been inflated by “ghost” listings that were no longer operating, and that stricter records give cities a clearer count before they set new caps. By summer, travelers, hosts and city officials will be testing whether fewer licenses mean fewer tourist beds, higher rates, or more room in neighborhoods that have spent years arguing over both. (tourism-review.com)