Renting Out Tiny Houses in Portugal: Legal Aspects, Licences and Tips

Tiny House Rental Portugal | Rental Licences | AL Licence | Residential Rights | Short-term Rental | Authorities | Sewage System | Legal Requirements

As we have already mentioned in previous articles, building and placing tiny houses in Portugal comes with certain challenges. However, renting out such properties is even more difficult.

Summary: Renting out tiny houses in Portugal is more complicated than in other countries. Three main hurdles need to be considered: Residential rights are often not automatically granted, rental is only possible with an official address, and without a regulated sewage system, no legal rental is permitted. The coveted AL licence for short-term rentals requires additional approvals from the municipality.

The Three Types of Rental in Portugal

In Portugal, there are basically three different types of rental, each subject to different regulations:

1. Long-term Rental (over 1 year)

• Less strict regulations than short-term rental

• Must still be registered with the municipality  (only Taxofice)

• Requires regular residential rights for the property

  
  

2. Medium-term Rental (1-12 months)

• Often used for winter guests or seasonal workers

• Subject to its own tax regulations

• Must be registered with the municipality (only Taxofice)

  
  

3. Short-term Rental (under 1 month)

• Requires the coveted AL licence (Alojamento Local)

• Imperatively needs an official address and residential rights

• Subject to the strictest regulations and controls

  
  

The AL Licence: Key to Tourist Rental

The most coveted licence is the AL licence for short-term rental. However, few people know that this also requires residential rights and a separate approval from the municipality.

Requirements for the AL Licence:

• Officially registered address for the property

• Proof of a functioning sewage system

• Fire safety certificates

• Energy efficiency certificate

• Tax registration as a landlord

  
  

The Biggest Hurdle: Residential Rights for Tiny Houses

As already mentioned, a tiny house is often not recognised as a dwelling in Portugal by definition. This poses the central challenge for landlords.

The problem begins with the plot:

• Rustic Land generally does not allow permanent development

• Urbanised Land needs an approved architect's concept

• Building Land with Project only allows exactly what is specified in the development plan

Many tiny house owners face the dilemma of having a plot and a house but not being able to obtain an official residential address.

The Sewage Problem

Another major hurdle in renting is the issue of sewage:

• Without an approved sewage system, no legal rental is possible

• This poses a particular challenge, especially for mobile tiny houses

• Composting toilets are not recognised as an adequate solution in many municipalities

For many of our association members, this point is a decisive stumbling block in their rental plans.

Consider Regional Differences

As explained in the article on land acquisition, regulations vary considerably depending on the municipality:

• In tourist regions like the Algarve, there are often special regulations

• Some municipalities have introduced quota regulations for holiday homes

• In some areas, complete stops have been imposed on new AL licences

Crazy, isn't it? Even neighbouring municipalities can have completely different rules that apply just a few kilometres apart.

Alternative Ways to Legal Rental

There are still ways to rent out tiny houses on a short-term basis in Portugal. As a premium member of our association, you get access to detailed information about these options.

Some approaches we develop with our members:

• Integration into existing tourist projects

• Cooperation models with local entrepreneurs

• Special concepts for agriculturally characterised areas

  
  

Frequently Asked Questions About Renting Tiny Houses

Can I rent out my mobile tiny house without a fixed address?

No, for any form of legal rental, you need an official address and recognised residential rights.

Are there different rules for tiny houses than for normal holiday apartments?

In a way, yes. Since many tiny houses do not comply with traditional building regulations, the hurdles for a rental permit are often higher.

Can I rent out a tiny house on agricultural land for tourist purposes?

In most cases, not without further ado. However, there are special programmes for agrotourism that may allow such use under certain conditions.

Conclusion: Rental Success with the Right Strategy

While renting out tiny houses in Portugal is complex, it is certainly feasible with the right preparation, local contacts, and a good understanding of the legal framework.

We recommend checking rental possibilities already during the land search and including them in the overall planning. As an association member, you get access to our network of experts who can support you in this process.