Lisbon Takes Bold Step to Limit Short-Term Rentals: New License Restrictions Unveiled

Lisbon's City Council has taken significant action to regulate short-term rentals by approving a new limit on the issuance of licenses. Under the proposal from Mayor Carlos Moedas, new licenses can only be issued when the city's overall occupancy rate drops below 5%; currently, it stands at 7.2%.

The registration of new local accommodations has already been on hold due to a temporary six-month suspension. The recent decision aims to tighten regulations further.

New Licensing Rules

The new rules stipulate that:

• New short-term rentals can only be registered in neighborhoods where the occupancy rate is below 2.5%.
• In areas with occupancy between 2.5% and 5%, licenses will only be granted under exceptional circumstances, such as registering new rooms or converting long-vacant buildings that serve a social purpose.

If any neighborhood exceeds a 5% occupancy rate, no new registrations will be allowed, even if the city's overall rate is below the threshold.

Additional Measures

The proposal also seeks to limit short-term rentals to properties designated for residential use, restricting commercial activities within these accommodations. Moreover, it clarifies that the registration of these properties is personal and non-transferable.

Although the proposal included the establishment of a Local Accommodation Ombudsman to mediate disputes, this was rejected during the voting process.

These new regulations received approval just a day after the Lisbon Municipal Assembly accepted a local referendum on short-term rentals, aiming to halt activities and new licenses in residential buildings.