New Rental License Regulations 

Are you aware that Rental licenses are now being enforced? 

As a property owner you will need a license in order to legally let your private property to tourists. 

In recent months the state, without any warning, has started to enforce these regulations.  The Economic Activities Inspectorate (IGAE) has been taking a close interest in private tourism properties, particular in the Algarve region.  Heavy fines are at stake: from €2,500 to €30,000 depending on the type of property and the classification of the offence.

The law established that all properties regularly let for tourism purposes, either through an intermediary, such as an agency, or some form of advertising, must have a license to do so.  The only situation in which a license is not required is if you only let for a short period each year without the use of advertising or an intermediary.   

To qualify for a license your property must comply with a number of stipulations.  Firstly, you must have a habitation license (like all other properties for habitation).  It must have all fresh water, sewage and electricity infrastructures in place and comply with a number of basic security and quality standards in the kitchen, toilets and swimming pool.  Some services have to be provided such as regular cleaning.

Filing an application for a licence is rather complicated and time consuming, however, there are now several agencies in the Algarve who are able to take the headache from this process and apply for the licence on your behalf. These companies are well acquainted with the legislation and also the procedures for gaining a licence.

Your house may not be legally rented out without this license.  Simply having applied for one is not enough to prevent the imposition of fines.  In the case of defaulting owners, if you co-operate with the inspectors by volunteering to pay fines as soon as possible and start the licensing process immediately, they may have to face only the minimum penalty. Once a fine has already been issued, however, there is no way out of paying it except by presenting an acceptable defence and/or an appeal in court. 

We recommend that anyone letting an unlicensed property for tourist purposes starts the process of obtaining a license without delay as the process of issuing the permit may take up to several weeks.

For any rental license assistance contact enquiries@asset-algarve.com