Notes for international buyers
Buying to Rent? The Rules for Alojamento Local Have Changed
Many of our clients buy in the Algarve not just to live, but to generate income through short-term rentals (Airbnb/Booking). This is known as "Alojamento Local" (AL).
IT IS NOT AUTOMATIC: You cannot simply buy an apartment and put it on the rental market the next day.
UPDATE (September 2026): The 2023 "Mais Habitação" suspension of new registrations and the condominium-approval rule were repealed in 2024. Today:
- Containment Areas: Each Town Hall may create areas with limits on new registrations.
- The Condominium: It can ask the Town Hall to cancel an AL in the building, or prohibit AL in its regulations.
GOOD NEWS: It is still possible to invest profitably, but you must choose the right property. Villas (detached houses) generally have fewer restrictions than apartments.
PROTECT YOUR ROI: Before you buy with the intent to rent, ask us to perform a "Feasibility Check". We verify if the property is eligible for a license so you don't get stuck with a house you can't monetize.
Written on the date shown and updated in September 2026. The law and tax figures may have changed since. This article is general information, not advice on your particular case. For questions: info@pedrotabuada.com · +351 923 337 076.