AL Licences in the Algarve: What Buyers Need to Know

What is an AL licence?

An Alojamento Local (AL) licence is the official registration required to operate short-term holiday rentals in Portugal. Without one, renting your property on platforms like Airbnb or Booking.com is illegal and subject to fines.

Registration process

AL registration is done through the Balcão Único Eletrónico (single electronic counter) and requires proof of property ownership, a valid habitation licence, insurance and compliance with safety standards.

Containment areas

Since 2023, some high-density tourism areas can be declared "containment zones" where new AL licences are suspended. In the Algarve, several freguesias have introduced restrictions to manage tourism pressure.

Why AL density matters

High AL density in an area indicates strong rental demand but also higher property prices, more competition and potential future restrictions. Low density might mean an opportunity or could indicate poor rental potential.

Check Algarve maps every registered AL licence from the national RNAL database, letting you see exactly how many licences are active in any area.