Understanding Alojamento Local (AL): What You Need to Know Before Investing

If you’re considering investing in a property in the Algarve for holiday rentals, you’ve likely come across the term Alojamento Local (AL). This is Portugal’s official registration for short-term rental properties — and it’s essential for anyone planning to generate income through platforms like Airbnb or Booking.com.

The AL license ensures your property meets safety, hygiene, and legal standards for tourism accommodation. It also gives your guests peace of mind and allows you to operate legally and transparently.

However, regulations can vary by municipality, and some areas have introduced restrictions or licensing freezes due to high demand. That’s why it’s crucial to do your due diligence before purchasing — or better yet, work with someone who knows the local landscape.

At Algarve Property Connect, we guide our clients through every step of the process — from identifying properties with strong rental potential to navigating AL licensing requirements. With our local expertise, you can invest with confidence and tap into the Algarve’s thriving short-term rental market.

Looking to buy and rent in the Algarve? Let us help you make the most of your investment.