Portugal’s New Housing Law: Impact on Airbnb’s and Hostels
Portugal, a country known for its picturesque landscapes, vibrant culture, and thriving tourism industry, is at a crossroads. As Europe grapples with the surge in tourism and housing issues, Portugal has introduced the Mais Habitação (More Housing) law. While its intentions are to create a fairer housing market, it’s casting a shadow of uncertainty over hostels, guesthouses, and vacation rentals. In this blog post, we’ll delve into the details of this law and its potential implications for Portugal’s beloved hostels.
The Mais Habitação Law: What You Need to Know
New Rules for “Alojamento Local”
Under this new law, properties classified as “alojamento local” (local accommodation) are facing significant changes. This category includes guesthouses with under 10 rooms, hostels, and Airbnb-style properties. The law imposes strict regulations, including:
1. Moratorium on New Openings: No new alojamento local licenses will be issued until 2030, except in “low density” areas and detached properties.
2. Five-Year License Renewals: After 2030, existing licenses must be renewed every five years, subject to local authority discretion.
3. Increased Taxes: Properties outside low-density areas will see property taxes rise, including a new tax known as CEAL, starting at 15%.
4. Neighbor Approval: Any new short-term rental must receive unanimous approval from neighbors to acquire a license, with hotels being the only exception.
The Housing Crisis in Portugal
The backdrop of this law is Portugal’s ongoing housing crisis. The housing crisis in Portugal has led to protests, with activists labeling it a “social emergency.” Low wages, rising rents, and the impact of tourism have created a perfect storm. While tourism has boosted the economy, it has also driven up housing prices, pushing families to relocate or face financial stress. The government acknowledges the need to prioritize housing as one of its top concerns. However, the law’s broad reach has raised questions about its actual impact on hostels and guesthouses.
Over 6% of properties in Lisbon and 7.4% in Porto are registered as alojamento local, making this law a cause of concern for the entire industry. Hostel owners fear the uncertainty of license renewals, while the new CEAL tax could cripple small businesses.
Uncertain Futures for Portuguese Hostels and Airbnbs
Portugal, particularly Lisbon, boasts world-class hostels known for their unique character and local connections. Many of these hostels are run by local families, offering travelers a distinct experience. However, with the Mais Habitação law looming, the future of these hostels is uncertain. Guesthouses and Airbnb’s are also feeling the pinch. Diverse accommodation options are essential for tourists, but these measures could jeopardize their existence with the introduction of significant additional taxes and no guarantee of license renewal in 2030.
Conclusion: A Growing Crisis
The rise of platforms like Airbnb has contributed to housing shortages and soaring rents worldwide. While Portugal was already taking steps to regulate short-term rentals, the Mais Habitação law has brought about unprecedented changes, causing concern within the industry.
Hostel owners, associations, and even city mayors have criticized the law’s impact on the tourist industry and housing market. As the law awaits approval from the President of Portugal, the fate of hostels and other accommodation establishments hangs in the balance.
Portugal’s unique and vibrant hostel culture is at risk, and many are left wondering if these establishments can survive the challenges posed by the Mais Habitação law. In the end, the hope is to strike a balance between promoting tourism and ensuring affordable housing for Portugal’s residents.
