Many properties marketed in Lagos and the wider western Algarve already hold an Alojamento Local (AL) registration, which permits short-term tourist rental. For overseas buyers, this is often presented as an attractive feature, particularly where rental income is part of the purchase rationale. In practice, what transfers with the property is more nuanced than the marketing suggests, and treating the licence as a tradable asset without verification is a common mistake.
Quick Answer
- AL licences in Portugal are issued to a person or entity, linked to a specific property
- On sale, the existing AL number does not automatically continue under the new owner
- Transfer requires action through the Balcão Único Eletrónico within sixty days of the escritura
- Some municipalities operate containment zones where new registrations are restricted
- Condominium rules can override an otherwise valid AL registration in apartment buildings
What an AL Licence Actually Is
Alojamento Local governs short-term tourist accommodation across Portugal, and the licence is recorded in the Alojamento Local national registry. Each registration is tied to a specific address, a permitted modality (apartment, moradia, hostel, room), and a registered holder who carries the operational and tax obligations. Because the licence is linked to both the property and the holder, a change of ownership does not flow through automatically.
What Actually Transfers on the Sale
The property transfers with the escritura, but the AL registration does not move across as a single asset. In broad terms, the position is:
- The right to operate AL at that address can usually be maintained, provided the new owner submits a fresh communication within sixty days of completion
- The seller’s AL number is cancelled, and a new registration is issued in the buyer’s name
- If the sixty-day window is missed, the property may be treated as a fresh application, which in some areas is no longer possible
- Existing bookings on the seller’s listing pages do not automatically transfer and need to be handled commercially between the parties
This last point matters more than it sounds. Forward bookings are usually tied to the seller’s accounts on Airbnb, Booking.com or similar, and the buyer cannot assume they will inherit either the channel listings or the reviews.
Containment Zones and Local Restrictions
Several municipalities in the Algarve operate containment areas where new AL registrations are suspended or capped. The rules differ between councils and have changed several times in recent years, so the position needs to be checked at the level of the freguesia, not the municipality. Where a containment rule applies, a lapsed licence may not be reissued, so buyers relying on rental income should confirm current status with the câmara municipal before committing.
Condominium Rules in Apartment Buildings
For apartments, the condominium can adopt a resolution restricting or prohibiting AL within the building, and where two-thirds of the permilage votes against AL, that decision is binding on units that did not already hold a registration. When buying an apartment with an existing AL licence, your advogado should review the condominium minutes for any vote that affects short-term rental, and read the regulamento do condomínio in full.
Tax and Operational Points to Verify
AL is treated as a business activity for tax purposes in Portugal, and the seller will have been registered with the Portuguese Tax Authority under the relevant CAE code. A few items are worth confirming before completion:
- That the seller’s AL operation has been correctly declared and that there are no outstanding tax liabilities tied to the activity
- That the property’s caderneta predial matches the use declared under AL
- That municipal tourist tax obligations have been settled up to the date of escritura
- That fire safety, civil liability insurance and the information book required for guests are in place and current
Common Mistakes
- Assuming the AL number transfers with the deed and not communicating the change within sixty days
- Relying on the seller’s listings without confirming whether the channel accounts can be reassigned
- Pricing in forward rental income without checking whether the freguesia sits inside a containment zone
- Skipping the condominium minutes when buying an apartment, then discovering an AL restriction after completion
For buyers weighing up the wider context of homes for sale in the Algarve, the AL question interacts with location choice. Some areas remain straightforward for short-term rental, while others are tightening, and that picture can shift between one council meeting and the next.
Where This Fits in the Buying Process
AL due diligence sits alongside the standard checks on title, charges, planning and condominium status, and it is not a substitute for them. We would recommend reading our note on property law before buying in the Algarve for the broader framework, and our piece on turning your Algarve property into a profitable rental for the operational side. The advogado should verify the AL position in writing before the CPCV is signed, since once a deposit has been paid the leverage to renegotiate is reduced.
Summary
An existing AL licence on an Algarve property is often a genuine feature, but it is not a portable asset that arrives intact with the keys. The practical position depends on the sixty-day notification window, the freguesia’s containment status, and, for apartments, the condominium’s stance. Verifying each of these before signing avoids the most common post-completion surprises.
At B&P Real Estate, we work closely with buyers in Lagos and the wider western Algarve to flag AL questions early and to coordinate the legal review with lawyers we know well. If you are considering a property where short-term rental is part of the case, and would like help thinking through what actually transfers, please get in touch.
