Where You Can't Get an AL Licence in Portugal (July 2026): The Containment Areas Every Buyer Must Check Before Signing
By Daniel de Oliveira, founder of EazyAL · July 2026 · 9 min read
Summary — read this before you buy:
As of July 2026, new AL registrations are blocked or heavily restricted in parts of Lisbon, Porto, Viana do Castelo, Funchal and Lagoa (Azores)
Nazaré's restrictions take effect from August 2026; Faro's are still a draft
There is no national "AL ban map" — every municipality sets its own rules, and they change fast
Check the containment status before you sign a promissory contract, not after the deed
You found the perfect apartment. Can you actually get an AL licence for it?
Every week I talk to someone in the same situation: they've found a property in Portugal — a T1 in Lisbon's historic centre, a renovated flat near Porto's Sé, a place with sea views in Funchal — and the plan is obvious. Buy it, register it as Alojamento Local, list it on Airbnb.
Here's the question almost nobody asks before signing: is the property in a containment area?
Because if it is, there's a real chance you cannot register a new AL there at all. Not with a good lawyer, not with patience — the municipality can simply say no. And by the time most buyers discover this, they've already completed the purchase with a business plan that no longer exists.
I'm an AL host in Portugal and the founder of EazyAL, a compliance platform for AL hosts. This guide covers where new AL registrations are blocked or restricted as of July 2026, and — more importantly — exactly how to verify a specific property before you commit money to it.
First, a correction: there is no "AL licence"
The market shorthand is misleading. Legally, you don't get a licence — you file an AL registration through Gov.pt (the Balcão Único Eletrónico) via comunicação prévia com prazo. The municipality then has 60 days to oppose your registration — or 90 days if the property sits in a containment area.
That word — oppose — is the whole game. Since Lei n.º 62/2018 gave municipalities the power to create áreas de contenção, and Decreto-Lei n.º 76/2024 expanded those powers again, city halls decide where new ALs can and cannot open. Between 2024 and 2026, several of them have used that power aggressively.
Where new AL registrations are blocked or restricted (July 2026)
Lisbon — in force, and tighter than most investors realise
Lisbon revised its municipal AL regulation in December 2025, and it's now more granular than the old parish-only system. Absolute containment applies wherever ALs reach 10% or more of permanent housing; relative containment applies between 5% and 10% — mapped at municipality, parish and even bairro level in Annex IV of the regulation.
In absolute containment areas — concentrated in the historic centre and pressured central districts — new AL registrations are not admissible except through narrow exceptional routes (for example, dwellings not rented as housing in the last 5 years). The controlling map is updated by the municipality, so the answer for a specific street can change. Check the current Annex IV map immediately before filing — not the version from a blog post written last year, including this one.
Porto — yes, the restrictions are back
Many buyers still believe Porto's 2023 rollback left the city open. It didn't. Porto's containment regulation was restored in December 2024, and the city's official portal (updated February 2026) confirms it's in force.
No new AL registrations in the historic parishes of Santo Ildefonso, Sé, Miragaia, São Nicolau and Vitória, except through specific exceptions (buildings vacant more than 3 years, recently rehabilitated buildings, use conversions, and a few others — renting quartos remains possible). The rest of the city is classified as "sustainable growth" and monitored against a numerus clausus, meaning it can tighten too.
Funchal (Madeira) — the strictest regime in the country
Funchal's new regulation entered into force at the end of June 2026, and it covers the entire municipality in two areas. In Area 1 (the parish of Sé), new AL registrations are prohibited in any modality except narrow exceptions. In Area 2 — every other parish of Funchal — new AL is prohibited except for moradias (standalone houses) or rooms within a moradia, plus limited exceptions tied to rehabilitation, ARU status, and buildings with no housing lease in the previous 2 years.
If your plan was "buy an apartment in Funchal, list it on Airbnb" — as of July 2026, that plan doesn't work for standard apartments. This is the single biggest change most Madeira buyers haven't heard about.
Viana do Castelo — historic centre closed
In force since late June 2026: no new AL in the containment area covering the historic centre (within the Plano de Pormenor do Centro Histórico, in the union of parishes of Santa Maria Maior e Monserrate e Meadela). Exceptions exist for recently rehabilitated buildings, owner-occupied room rentals, and commercial-to-housing conversions. The surrounding urban pressure zone stays open but can automatically flip into containment.
Lagoa (Azores) — a quota, not a map
Lagoa in São Miguel works differently: new AL registrations are capped at 10% of the housing stock per parish (Santa Cruz, Nossa Senhora do Rosário, Água de Pau, Cabouco, Ribeira Chã). Below the cap, applications are processed in order of entry; once a parish hits 10%, the door closes. Ask the câmara where the parish currently stands before you buy.
Nazaré — restrictions arrive in August 2026
Nazaré published its AL regulation on 3 July 2026, but it only enters into force on the first working day of August 2026. The regulation splits the main urban area into six sub-zones (Sítio, Calhau/Rio Novo, Praia Norte, Praia Centro, Praia Sul, Pederneira) with containment and sustainable-growth classifications. If you're buying in Nazaré right now, you're buying into a regime that changes next month — check the municipality's classification page before committing.
Faro — still a draft, but watch it
Faro published a detailed project regulation in June 2025 proposing containment across its parishes, but as of 9 July 2026 no final act has brought it into force. Not restricted today; likely restricted soon. Price that risk in.
Cascais, Sintra, Lagos, Albufeira — no containment act in force, but verify
None of these had a binding containment regulation in force as of 9 July 2026. That does not mean "open and safe forever" — Lagos has already framed AL containment as a housing-policy objective. Always confirm directly with the municipality's urbanism department before purchase.
The 3 questions to ask before buying any property for AL
Most buyers ask one question: "Does it have residential use?" That's not enough. Ask three:
1. Is the property in a containment area? Get the current municipal containment map or live status page and check the exact street, article and fraction — not just the parish. Lisbon now regulates at bairro level.
2. Does the building's history qualify for an exception? If it is in containment, your only route is the local exception regime: proof of vacancy, no housing lease in the look-back window (5 years in Lisbon, 2 in Funchal, 3 for some tests in Porto and Viana), ARU/rehabilitation evidence. Build your file around the exception route, not optimism.
3. Is the urban title compatible with the AL modality you want? Apartment vs. moradia vs. quartos vs. estabelecimento de hospedagem — in some regimes (Funchal Area 2, Porto containment) the modality is the difference between allowed and prohibited.
The safest workflow before you sign
Before the promissory contract (CPCV), verify the containment map yourself. If anything is unclear — use, rehabilitation scope, ARU status, prior leases — file a pedido de informação prévia (PIP) with the municipality's urbanism department. Any interested party can file one, and the municipality must respond on the feasibility of your intended operation. It's the cheapest insurance you'll ever buy on a six-figure purchase.
Only after that, complete — and file your AL registration on Gov.pt, remembering the municipality has 60 days to oppose (90 in containment areas). Don't fully commit your revenue plan until that window closes.
And once your AL is registered — the work isn't over
Getting the registration is step one. From day one of your first booking, you're responsible for SIBA/AIMA guest reporting within 3 days of check-in (fines up to €2,500), the monthly INE survey (mandatory even with zero guests), tourist tax at your municipality's rates, and invoicing records.
That's the part I automate. EazyAL handles SIBA, INE and tourist tax through one guest check-in link — built by a host, for hosts, from €0/month. If you're buying your first AL property and want the compliance side sorted from day one, create a free account — I'm personally available to help you set up.
FAQ
Can I still get an AL licence in Lisbon in 2026? In absolute containment areas (much of the historic centre), no — new registrations aren't admissible except via narrow exceptions, such as dwellings not rented as housing in the last 5 years. Outside containment, yes, but the municipality still has 60 days to oppose.
Can I open an Airbnb in Porto's historic centre? No. New AL registrations are blocked in Santo Ildefonso, Sé, Miragaia, São Nicolau and Vitória unless you qualify for an exception (long-vacant buildings, recent rehabilitation, use conversion). Renting rooms (quartos) remains possible.
Can I register an AL in Funchal, Madeira? For standard apartments, effectively no as of June 2026 — the whole municipality is under containment. Standalone houses (moradias) and rooms within them remain possible in parishes outside Sé, plus rehabilitation-based exceptions.
How do I check if a property is in a containment area? Check the municipality's official AL regulation and annex maps (or live status page), and confirm the exact street and fraction. For any doubt, file a pedido de informação prévia with the câmara before signing.
What happens if I buy in a containment area anyway? Your AL registration can be refused — the municipality has 90 days to oppose. Unless the property qualifies for a documented exception, you cannot legally operate short-term rentals there.
Does a containment area affect an existing AL registration? Generally no — existing registrations continue. Restrictions apply to new registrations. But note: in some municipalities, registrations can lapse on transfer of ownership, so verify whether the AL transfers with the property before assuming you're buying a working licence.
This article reflects the position as of 9 July 2026, based on Diário da República publications and municipal sources. Municipal regulations change frequently — always verify the current status with the municipality before purchase. This is general information, not legal advice.
