Portugal news - Are Portugal’s Airbnb days numbered? This is the question that is raised by owners of local tourist accommodation since the government is set to enact the new housing law.
Portugal’s Parliament has just approved the law for More Housing that is a direct blow to the previously booming Airbnb market. The drastic measures that could soon be enacted to increase the housing supply are highly controversial.
Portugal is killing the Airbnb market by enforcing a number of drastic measures that will prevent private apartment owners from renting their properties to tourists. Such measures include limits on new licenses as well as the inability for a property owner to obtain a license if the condominium does not give its approval.
Portugal’s government has opted for strong measures to curb the current housing crisis. These measures will ensure that vacant properties will be put on the rental market and the government will rent private accommodation in order to sub-let housing at a subsidized price. Beneficiaries will include single-parent families, those who are under 35 years old as well as people who have recently lost over 20% of their income. Property owners, whether individuals or companies, who are willing to be included in the program will have clear tax benefits as they will obtain a full tax exemption. Moreover, property owners will be able to set the rental price at up to 30% above the general price and contracts will be for at least 3 years.
Portugal’s local tourist accommodation sector, that is mostly comprised of properties on the Airbnb market, represents 3.8% of GDP and accounts for 40% of overnight stays. Portugal’s hotels association AHRESP has stated that this new law will lead to the extinction of local tourist accommodation, which seems to signal that Portugal’s Airbnb days might now be numbered.
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