If you operate an Alojamento Local (AL) in Portugal, your registration needs regular attention. Municipalities are reviewing records, checking insurance documents and taking action where they find non-compliance.
By June 2026, municipalities had ordered the cancellation of more than 10,000 AL registrations, according to figures reported by Portuguese media. The reported totals included 6,765 registrations in Lisbon and 1,413 in Porto. These figures came from municipal reviews that included inactive or “ghost” registrations; they do not show that every cancellation was caused by missing insurance. ALEP later reported that more than 10,000 registrations had been cancelled in Lisbon, Porto, Lagos and Lagoa, with the process continuing elsewhere. (Diário de Notícias, ALEP)
Insurance is one of the clearest compliance risks: the operator must hold valid cover and provide proof when required. But protecting an AL registration takes more than uploading one document. Hosts also need accurate records, timely responses, safe operations, clear guest rules and a working relationship with neighbours and the municipality.
Why can an Alojamento Local registration be cancelled?
Under the current national regime, a municipality may cancel an AL registration after giving the operator a prior hearing. Grounds include inaccurate information or documents in the registration, breaches of municipal installation restrictions, violations of specified operating requirements, missing mandatory insurance or required proof, and repeated, proven disruption to the normal use of the building. Certain containment-area rules may also apply where a permanent-housing lease was signed in the two years before a new AL application. (Decree-Law 128/2014, as amended)
A complaint, an insurance reminder or an inspection does not automatically mean a registration will be cancelled. The legal ground and the municipality’s notice matter. Read each notice carefully and respond within the deadline it specifies.
Insurance must be valid and properly documented
The operator must hold valid civil-liability insurance covering damage to guests and third parties. The required minimum cover is €75,000 per claim. For an AL unit in a building under horizontal ownership, the operator must also hold or provide proof of valid insurance covering fire damage to the unit. Missing valid insurance can be grounds for cancellation. (Current AL regime, Article 13-A)
The Government service says to submit proof when the RNAL number is issued, and again when the policy is renewed, paid or changed. If the municipality asks for an updated policy and payment receipt, the service states that the documents must be supplied within three working days. The three-day period is for this insurance request; do not assume it applies to every type of municipal notice. (Gov.pt: Submit proof of AL insurance)
Having a policy is not enough if the required proof is missing or out of date. Check that the documents correspond to the correct property and operator, and confirm the policy’s coverage, validity dates, exclusions and payment status.
Municipal rules can differ
National rules are only part of the picture. Municipal regulations can restrict new AL registrations in containment areas, set local requirements and affect whether a new application can proceed.
In certain containment areas, a recent permanent-housing lease may be relevant to a new AL registration where the applicable municipal regulation says so. Check the exact rule for the property’s municipality rather than assuming the same conditions apply everywhere.
Repeated, proven disruption can lead to action
Noise, waste, parties and misuse of shared spaces can damage relations with neighbours and the condominium. Under the national regime, repeated and proven acts that disturb normal use of the building may lead to a cancellation process. The law provides for attempts to resolve certain disputes through agreed commitments and conditions; a single complaint is not the same as a finding of repeated, proven disruption. (Decree-Law 128/2014, Article 9)
Does an AL registration expire automatically?
Decree-Law 76/2024 removed the previous five-year renewal rule and the earlier automatic-lapse mechanism for inactive registrations. That means an AL registration is not subject to that five-year renewal cycle under the current national framework.
It does not mean the registration is unconditional. Municipalities can still cancel registrations on the legal grounds that apply, including missing valid insurance, inaccurate registration information or other non-compliance. Some municipalities have also carried out register-cleaning exercises targeting entries they considered inactive or “ghost” registrations. Those enforcement actions should not be confused with automatic nationwide expiry for inactivity. (Decree-Law 76/2024)
How to protect your AL registration
1. Submit and renew insurance proof
Use the official Government service to submit the civil-liability policy and the required proof of payment. Submit updated documents when the policy is renewed, paid or changed. If your unit is in a condominium building, check the separate fire-insurance requirement and where the municipality requires that proof to be sent. (Gov.pt insurance service)
Keep copies of the policy, payment receipts and submission confirmations where you can retrieve them quickly. Review the insured amount and exclusions instead of assuming that any policy labelled “home insurance” covers AL activity.
2. Keep your registration details current
The law requires operators to keep communicated information updated and to report changes through the relevant system within 10 days. Check the operator’s email and contact details in the RNAL so municipal notices can reach the right person. (Decree-Law 128/2014, Article 5)
If you stop operating the establishment, the cessation must also be communicated within the applicable period. If you continue to operate, keep basic evidence organised, such as booking records, invoices, maintenance documents and insurance papers.
3. Check the local rules for the property
Before starting or changing an AL operation, check the municipality’s current regulations, including any containment-area rules, local restrictions and requirements for the property’s use. A registration number should not be treated as an untouchable right that overrides later checks or operating conditions.
4. Keep the property safe and the information accurate
Treat AL as a regulated business, not an informal side activity. Keep required safety and operating conditions in place, provide accurate information to guests, and maintain the applicable tax, invoicing, guest-reporting, insurance and consumer-information records.
Review the rules for complaints, waste, noise, appliances and shared spaces. The AL information book should be clear and available in the required languages; in a condominium building, include relevant condominium rules and provide the responsible operator’s contact details as required.
5. Set clear guest rules and manage complaints professionally
Set simple, proportionate rules covering maximum occupancy, visitors, parties, pets, smoking, noise and use of the property. Explain important limitations in the listing before a guest books. Be candid about stairs, parking, noise or other features that could otherwise lead to disputes or poor reviews.
When a problem arises, respond calmly and factually. Keep relevant platform messages and document incidents, damage and repairs with dated photographs, cleaning or maintenance reports, invoices and prompt notifications. A professional response can help resolve the immediate issue and preserve a clear record if the matter is disputed.
6. Take privacy and security seriously
Cameras, smart locks and the collection or storage of guest identity documents involve privacy and data-protection obligations. Check the legal requirements before installing monitoring equipment or changing how guest data is handled. Limit access to the information you need and store it securely.
7. Manage the business, not only the property
A registration can be legally compliant while the business remains financially fragile. Revenue is not profit: include platform commissions, cleaning, laundry, utilities, consumables, maintenance, insurance, taxes, management costs and empty periods when calculating the real return per night.
Avoid relying entirely on Airbnb, Booking.com or another single platform. Direct bookings, a suitable website and a genuine customer relationship can reduce dependence on one platform’s fees and commercial decisions. Review pricing, minimum stays and availability as demand changes across seasons, events and local market conditions.
When expanding beyond a single platform, use a channel manager for your AL to coordinate connected calendars and reduce manual availability updates.
A clean, well-located apartment may not be enough to stand out. Develop a clear reason for guests to choose your property, deliver what the listing promises and treat reviews as part of the business’s reputation.
8. Professionalise as you grow, without losing the personal touch
A one-property operation may work with informal routines. As the portfolio grows, written procedures for check-in, cleaning, maintenance, emergencies and quality checks help prevent small oversights from multiplying.
Automation can reduce repetitive work, but the guest experience should not become impersonal. A thoughtful, timely human response remains valuable, especially when a guest needs help.
What to do if you receive a municipal notice
Read the notice as soon as it arrives. Identify the legal basis, the documents requested, the response deadline and the consequences described. Save a copy and proof of when you received it.
If the municipality requests insurance documents, the Government service says to provide the updated policy and payment receipt within three working days. For other notices, follow the deadline in that notice; do not assume the insurance deadline applies.
The law provides a right to a prior hearing before a cancellation decision. If you believe the facts are wrong, respond with clear evidence and seek advice from a Portuguese lawyer familiar with Alojamento Local rules.
One important distinction: the one-time municipal inspection described in the law is a way to ask for review of an opposition to a registration application. It is not a general inspection or appeal route for every cancellation decision. Check the remedy and deadline stated in your own notice.
Common mistakes that put an AL business at risk
Many hosts focus only on getting more bookings. A stronger approach is to manage the whole business:
Don’t treat compliance, tax, invoicing, guest reporting, insurance, safety or consumer information as secondary paperwork.
Don’t assume national rules are the only rules that apply; check the municipality and condominium requirements.
Don’t rely on one booking platform or compete on price alone.
Don’t mistake turnover for profit or use the same pricing strategy all year.
Don’t publish misleading photos or omit practical limitations guests need to know.
Don’t ignore reviews, answer difficult guests emotionally or leave incidents undocumented.
Don’t overlook insurance exclusions, tax provisions, privacy rules or the growing need for reliable operating procedures.
Don’t automate every guest interaction. Keep the service personal where it matters.
The long-term outlook is changing: hotel competition is growing, regulation is evolving, municipalities have a stronger role and guests expect more. Hosts who prepare for the next stage of the market will be better served by five priorities: legality, differentiation, professionalism, profitability and independence.
The key question is no longer only, “How can I get more bookings?” It is also, “Why should a guest choose my accommodation over a hotel or the many similar listings on the same screen?” The answer may matter more to the future of the business than simply increasing occupancy.
Frequently asked questions
How many Alojamento Local registrations have been cancelled?
By June 2026, reports put the number above 10,000, including 6,765 registrations in Lisbon and 1,413 in Porto. ALEP later said that more than 10,000 registrations had been cancelled in Lisbon, Porto, Lagos and Lagoa. These are dated figures, and the reported cancellations included municipal reviews of inactive or “ghost” registrations; they should not all be attributed to insurance alone. (Diário de Notícias, ALEP)
Is missing insurance proof the main reason registrations are being cancelled?
It is a clear and important compliance risk, and the law allows cancellation where required insurance is missing or requested proof is not supplied. But the public cancellation totals also include register-cleaning exercises. The available figures do not establish that insurance was the cause of every cancellation.
Does an AL registration expire after five years?
The five-year renewal rule was removed by Decree-Law 76/2024. The registration is still subject to ongoing legal requirements and can be cancelled on applicable grounds.
How long do I have to provide insurance documents?
The Government insurance service says that if the municipality requests an updated policy and proof of payment, you have three working days to provide them. Other notices may have different deadlines.
Can a municipality cancel an AL registration because of neighbour complaints?
Repeated, proven acts that disturb the normal use of a building can lead to a cancellation process, subject to the applicable procedure. A single complaint should not be treated as an automatic cancellation.
Can I request a municipal inspection after my registration is cancelled?
The one-time inspection in the national regime concerns review of an opposition to a registration application. It is not a general remedy for a cancelled registration. Check the notice and get advice on the applicable response or appeal route.
Keep your compliance work organised
EazyAL helps Portuguese AL hosts organise related administrative work, including guest reporting, invoicing, tourist tax and statistical reporting. Insurance documents still need to be submitted through the official Government service. Create a free EazyAL account.
