Local Accommodation: What could change by the end of 2026

A new decree allows certain municipalities more time to finalise their local regulations. We explain.

New transitional rules have been published to give municipalities more time to define their Local Accommodation (Alojamento Local, or AL) policies, at a time when many local authorities are seeking a balance between tourism activity and the need for housing. The change opens a new decision window for municipalities and could have significant impacts on the market. But what exactly changes for owners, investors and local authorities?

What does the new decree provide?

Decree-Law No. 151/2026 allows certain municipalities more time to finalise their local regulations on Local Accommodation. In practice, the measure aims to prevent local authorities from losing the ability to control new registrations while they define the rules they intend to apply in their territory, as Bárbara Damas, a lawyer at Dower Law Firm, explains in this article.

Which municipalities are covered?

Municipalities that had more than 1,000 registered Local Accommodation establishments as of 31 December 2025 and that have not yet passed a resolution on local regulation.
These municipalities now have until 31 December 2026 to decide on drafting or amending their respective regulations.

Can suspensions of new registrations continue?

Yes. If a suspension is still in force, it may be extended, exceptionally and only once, provided the Municipal Executive (Câmara Municipal) submits a proposal and the Municipal Assembly (Assembleia Municipal) approves it.

And if the suspension has already ended?

Where a previous suspension has already reached its legal limit and ceased to have effect, municipalities may approve a new suspension, likewise exceptional and only once.

How long can these suspensions last?

No later than 31 December 2026. In addition, a suspension ends earlier if:

• The municipal regulation enters into force;
• The Municipal Assembly decides to end the suspension;
• The period set for the suspension expires.

Are already registered local accommodations affected?

No. The decree is not retroactive. Valid registrations made before a suspension came into force remain fully valid. The limitations apply only to new applications submitted after the municipal resolution takes effect.

What should owners who want to open a local accommodation do?

Before proceeding with any investment, it is advisable to check with the relevant municipality whether a suspension is in force in the area where the property is located.
Some areas may be temporarily closed to new registrations, even if the rest of the municipal territory remains open to the activity.
For those looking to invest, the message is clear: checking municipal restrictions in advance will be more important than ever until the end of 2026.