Lisbon Eases Short-Term Rental Restrictions as Registry Cleanup Reveals Thousands of Ghost Listings

Lisbon has quietly loosened its Alojamento Local (AL) containment rules after a nationwide registry cleanup revealed that thousands of short-term rental registrations on the books were "ghost listings" — properties registered but no longer operating. The adjustment opens the door to new AL licences in several central parishes that had been effectively closed to new entrants.

Three Parishes Downgraded, One Freed Entirely

The municipal government has reclassified four parishes:

• Arroios, Estrela, and São Vicente — downgraded from absolute containment (no new licences permitted) to relative containment (new licences allowed within a cap)
• Avenidas Novas — removed from relative containment entirely, meaning new AL registrations can proceed without municipal restrictions

The changes were triggered by a data cleanup exercise that stripped inactive and expired registrations from the national RNAL (Registo Nacional de Alojamento Local) database. Once those ghost entries were removed, the actual density of active AL properties in those parishes fell below the thresholds that had justified the containment designations.

Nearly 150 Municipalities Still Waiting

While Lisbon has acted, nearly 150 other municipalities across Portugal are still waiting for a centralised digital platform that would allow them to perform their own registry cleanups. The platform, being developed under the supervision of Turismo de Portugal, is described as being in its "final phase" — but no firm launch date has been given.

The delay matters because inflated registration counts are likely distorting containment decisions nationwide. If other cities follow Lisbon's lead once the platform is operational, it could unlock new AL licensing capacity well beyond the capital.

Context: Portugal's AL Rules

Portugal introduced containment zones in 2023 under Decree-Law 76/2024, giving municipalities the power to cap or ban new short-term rental licences in areas where tourism density exceeded defined thresholds. The system created three tiers:

• Absolute containment: no new AL licences issued
• Relative containment: new licences allowed up to a fixed cap
• No containment: open registration

The problem was that containment decisions were based on total registrations — including properties that had ceased operating, changed use, or never actually opened. The cleanup corrects that distortion.

What It Means for Property Owners

For anyone who owns or is considering buying property in the affected Lisbon parishes, the reclassification is significant:

• In Arroios, Estrela, and São Vicente, it is now possible to apply for a new AL licence, subject to the relative containment cap. Previously, applications were flatly rejected.
• In Avenidas Novas, there are currently no municipal restrictions on new registrations.

The EU Short-Term Rental Regulation, which enters into force in May 2026, will add a further layer of transparency by requiring all EU member states to maintain public registers of short-term rental properties with verified data. Portugal's ongoing cleanup positions it well for compliance.