Lisbon caps short-term rentals at 10% to protect Portugal housing stock

Lisbon now caps short-term rentals at 10% of the permanent housing stock in central parishes and the rule blocks new licenses in areas that cross that line. The city approved the regulation on Dec. 2, 2025 and it took effect Dec. 6, 2025.

The city splits parishes into absolute containment and relative containment zones. Santa Maria Maior, Misericórdia and Santo António are already in absolute containment, with AL-to-housing ratios of 66.9%, 43.8% and 25.1%.

Who feels the squeeze

Tourists, expats and digital nomads have fewer short-term options in Lisbon’s historic core, where supply is already tight. Hosts in containment zones can’t easily add new listings and existing licenses can expire when a property is sold in closed zones.

Long-term residents are the intended beneficiaries. Lisbon says the cap is meant to protect housing stock in neighborhoods like Alfama, Bairro Alto and Baixa, while the citywide trigger kicks in if AL reaches 10% overall, though the city is still around 7%.

What hosts need to do now

Every short-term rental still needs an AL license through Turismo de Portugal’s online platform, along with municipal review when a property sits in a containment area. Safety and hygiene standards still apply and registration fees remain in place.

Applications in restricted zones can take 60 to 90 days for city review. A second amendment approved around April 2026 revised the containment maps, so hosts should check the latest parish status before filing. Read our full Portugal guide for the complete picture and see our visa updates for more country changes.