For villa owners, this demand offers a golden opportunity - turning your property into a successful holiday rental. But before welcoming guests, there’s one essential step that will make or break your rental plans: securing your Alojamento Local (AL) licence.

Why the AL Licence is non-negotiable

An AL licence is the official authorisation that allows you to rent your property to holiday guests in Portugal. Without it, you risk heavy fines that can reach €40,000. It’s not just a formality. It’s the legal foundation of a profitable and stress-free rental business.

Key changes for 2025

Recent reforms introduced in November 2024 have made the AL system more appealing for owners. Licences are now permanent, meaning there’s no expiry date, and they can be transferred when selling a property, increasing its market value. However, these changes also give municipalities greater control over short-term rentals, which means rules and approval processes can vary from one area to another.

How the AL licence process works

Applying for an AL licence means registering your property with your local Câmara Municipal. Some municipalities offer a simple online application, while others may require an inspection to check safety, building standards and amenities. In addition, certain locations have zoning or density restrictions to manage the number of holiday rentals in the area. These variations are why local expertise is so valuable. What works in one town might not apply in the next.

Partner with SandyBlue for a stress-free start

For new owners, the paperwork and regulations can be overwhelming. A villa management company can guide you through every step, from submitting your AL application to ensuring your property meets ongoing compliance obligations. These include displaying your AL number in every advert, registering all guests and handling the correct tax submissions.

This is where SandyBlue’s dedicated onboarding team steps in. From the very first conversation, they guide you through every stage of the AL application, ensuring your villa meets all compliance requirements before the first guest arrives.

The wider SandyBlue team works hand-in-hand with owners, from marketing and guest management to maintenance and revenue optimisation, ensuring your property reaches its full potential. With local knowledge, trusted contacts and years of Algarve expertise, SandyBlue takes care of the details so you can focus on enjoying your investment.

Your key to a thriving Algarve rental

The Algarve’s holiday rental market is thriving, but competition is fierce. Securing your AL licence and partnering with experts will set you apart, giving you peace of mind and maximising your villa’s earning potential. In 2025, making your property legal, compliant and guest-ready isn’t just a smart move - it’s the only move.


For more information, please contact SandyBlue at +44 (0)207 183 0412 (UK) or +351 289 392 236 (PT).