Those landlords that have been holding the breath for today's announcement of the new rules for Alojamento Local (short-term property rentals to tourists) will have to waiting until next week as parliament ran out of debating time.
The Local Accommodation Working Group approved the postponement of a vote on the diplomas to change the AL system but hopes it will be finalised on July 17th.
The vote on the AL changes will now take place together with the legislative proposals for the decentralisation of powers to local Councils, whose vote also was postponed due to a lack of time.
This means that the final AL vote should be made on July 18th before parliament winds down for a month’s break.
The changes to the AL regime have been proposed by various parties and included in the working group’s final proposal on which parliament has to vote.
There has been a danger that, with so many parties involved, that the new laws will lack financial and operational sense in a business sector that has been subject to some of the most bizarre ideas rooted in political dogma.
The Socialist Party’s amendment was that an owner may not run more than seven AL properties, that the Councils can establish "containment areas" for the opening of new establishments and that condominium owners can oppose AL licences in case of repeated complaints from neighbors.
It is expected that the Communist Party's proposal, that AL properties should be limited to 90-days-a-year, has quietly been dropped.
What is certain is that Councils will be far more involved in the AL system and will be able to decide whether or not someone’s licence can be revoked. This brings up the very real possibility of abuse of the system by local Councils, especially considering the number of foreign owners engaged in the AL economy.
The Social Democrats and opposition CDS-PP want to allow Councils to regulate AL activity only in areas where 20% of establishments are for tourist rentals.
The CDS-PP wants to define "clear and objective criteria" to be able to limit tourist rentals, which, of course, is what the working group has been trying to do for months.
For property owners looking for information on Alojamento Local compliance, contact the National Association of Local Lodging Establishments at www.nalle.pt and/or ask afpop
