Lisbon City Council Votes to Suspend New Short-Term Rental Licenses: What You Need to Know

Lisbon City Council Takes Action

On Wednesday, the Lisbon City Council debated and voted on two proposals aimed at the immediate suspension of new short-term rental licenses. The first proposal, initiated by the Socialist Party (PS), suggested a suspension applicable in areas where the ratio of short-term rentals is 2.5% or higher. If the overall municipality ratio reaches 5%, a complete suspension zone would be established.

The second proposal, from Carlos Moedas' administration, simply called for a suspension of new registrations across Lisbon until a new regulatory framework is enacted.

Unanimous Support for PS Proposal

The PS proposal received backing from socialists, Livre, PCP, Bloco de Esquerda, and Cidadãos por Lisboa, ultimately passing unanimously in the second round of voting. The suspension is set to take effect on November 1 and will remain until a new regulation for short-term rentals is approved.

New Law Impact

This decision aims to respond to the new Short-Term Rental Law coming into effect this Friday, which would lift the current suspension of new licenses in 20 out of 24 Lisbon neighborhoods.

Mayor's Stance

During the council meeting, the mayor advocated for a straightforward suspension, emphasizing the need for clarity for Lisbon residents. He suggested that after suspending all registrations, a new regulatory proposal could be discussed.

Concerns Over Licensing

Joana Almeida, the council member overseeing Urbanism, expressed concerns that the PS proposal might lead to a license hunt and the emergence of 'ghost licenses'—already numbering over 7,000 in the city. Inês Drummond, a PS councilor, noted that with the current ratio at 7.5%, it would be impossible to issue new licenses under the proposed regulations.

Despite opposition to the proposals and lack of consensus, the PS proposal was passed, marking a significant shift in Lisbon's approach to short-term rentals.