Portugal's Constitutional Court Blocks Local Referendum on Short-Term Rentals: Political Reactions Unfold

Constitutional Court Rejects Local Referendum on Short-Term Rentals

The Constitutional Court (TC) has rejected a proposal for a local referendum regarding Short-Term Rentals (AL) in Lisbon, citing a lack of verification of the legality of the popular initiative due to insufficient "effective control of signatures".

This initiative was promoted by the Movement for Housing Referendum (MRH), which aimed to ask two key questions:

• Do you agree to amend the Municipal Regulation of Short-Term Rentals to require the Lisbon City Council to cancel registered short-term rentals in properties intended for housing within 180 days?
• Do you agree to amend the Municipal Regulation to prohibit short-term rentals in properties designated for housing?

Court's Explanation

For a popular initiative to be valid, it must be proposed to the deliberative assembly by at least 5,000 or 8% of registered voters in the area, whichever is lower. Three days after the TC's decision on the local referendum, the MRH submitted a second batch of signatures, including 612 additional registered voters, which were sent to the TC without prior verification.

Despite acknowledging that the process presented by the president of the Lisbon Metropolitan Area (AML) was "regularly instructed", the TC emphasized that the collection and verification of the necessary signatures is a "crucial formality" that, if ignored, invalidates the initiative, constituting a significant legal violation under the Local Referendum Legal Regime (RJRL).

The TC also highlighted the need to identify at least 15 representatives for the initiative and for the AML to seek an opinion from the president of the Lisbon City Council, as it is the municipal executive that determines the cancellation of short-term rental registrations according to the law.

Political Reactions

Carlos Moedas Celebrates the Decision

Lisbon's mayor, Carlos Moedas, described the TC's ruling as a "great defeat for the radical left supported by the PS" (Socialist Party). In a statement, he praised the current municipal government's balanced approach to regulating short-term rentals, contrasting it with the previous PS administration, which he blamed for expelling residents from the city over the past 14 years.

Socialist Perspective

On the socialist side, Miguel Coelho, president of the Santa Maria Maior parish, expressed disappointment over the invalidation of the referendum, suggesting that the initiative should have been led by the PS.

Liberal Initiative Calls for Resignation

In light of the TC's decision, the Liberal Initiative (IL) has called for the resignation of the president of the AML, arguing that the TC's ruling is a "defeat" for the AML, which they claim succumbed to populism. They hinted at the possibility of presenting a motion of censure if the president does not resign.

Next Steps for the MRH

The MRH indicated that they are "deeply analyzing" the court's decision and will deliberate on their next steps, with further information expected soon. Currently, the PS has proposed a suspension of new short-term rental licenses in Lisbon, due to the ratio of traditional family accommodations to short-term rentals exceeding the legal limit. This suspension will remain until the new regulations are finalized.