AL bombshell: apartments in residential buildings cannot be rented to tourists

Tobi Hughes·
Madeira News

Supreme Court ruling affects apartments already within AL regime. 

A decision by the Supreme Court has blown a surreal hole in the AL (short-term tourist-lodgings) sector.

As of today, no property owner can rent out a property ‘destined for habitation’ within the AL regime, even if they have a licence to do so and are full of bookings for the future.

Público is running this story as an exclusive, but it is being picked up by other media sources – the simple reason being, this could create a tidal wave of issues.

The Supreme Court decision was unanimous, with almost 30 judges supporting it.

Leading judge Paulo Rijo Ferreira has admitted that the number of cases likely to come denouncing ‘illegal’ AL activity will snowball – while there are real ‘economic risks’ on the horizon.

If people cannot legally rent out apartments they purchased in good faith for this kind of ‘investment’, they may well chose to rent them out illegally – meaning the State could stand to lose hundreds of thousands, if not millions, of euros in tax revenue.

Continue reading in Portugal Resident.

 

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Tobi Hughes

23 Responses

  1. Unbelievable! In Anadia Apartments there are 6 apartments that I know of are rented to tourists. You can bet your boot the cartel of hotel companies are behind this.

  2. AL is a service holiday makers enjoy, spreading the wealth to the people.

    ‘The big 5’ can’t have that happening, they want it all and the minions where they belong. ?

    1. Sadly this will not apply to Madeira. The boom in tourism means local people are elbowed our of affordable accommodation. This is partly why there is a shortage of staff in the hotel and restaurant sectors. It’s happening in Barcelona and Mallorca too. Airbnb is driving out the people who call these places home.

  3. This really shouldnt be published without (1) clarification that it applies in Madeira and (2) less sensationalism and more realism since it is only relevant when a condominium objects AND the AL appeal doesnt result in cancellation AND a court case is pursued …

  4. Currupt toerags ? Normal local people will suffer dearly without there tourist rental income there is nothing else.

  5. This is injustice to the people of Madeira residents. Why? Government should help the local residents to have Extra income to help their individual big family, why? 705 euro monthly Salary is not enough for the couple that have 2 or 3 children. The government needed to help the residents to have extra passive income so that the individual family can give food and good life to their children. Where is the heart to help the local residents people?

  6. Ok, now I’m worried. We’re coming out in 6 weeks, staying in an apartment that we’ve stayed in previously….

  7. Whether this will be put into place in the islands is another story and quite worrying.

  8. From now on the hotels will be able to increase the prices.
    It’s not hard to imagine who’s behind this mess

  9. If you can’t rent, then the state loses tax revenue,full stop. Going over to black market, is not what causes the loss of tax revenue in this case( and come on, we are in Madeira, where more people than not,under declare their income streams)
    They did very similar things in Baleric islands some years ago ( a lot of years ago) our friends have a four varying size apartments underneath their villa level, now can’t rent them, so use them for non paid for family only use, but get a tax bill for the hyperthetical rent, they would generate!!!
    It was the all inclusive hotel chains on island that engineered this. The ones who had all damaged local businesses with all inclusive and now Menorca’s season has shortened and its like a ghost town from mid Sept to early May with restaurants closed down.

  10. There is big capital behind big hotel chains. The more of them you invite to the Island, the more they will fight their local competition – the people of Madeira. Getting into bed with the devil never ends well, despite all phantastic promises they have made beforehand.

  11. So do this mean that apartments for short-term accommodation will come into the long-term rental market? I guess that would mean that the rent prices will come down.

    1. At the moment it’s not in Madeira, have spoken to serveal people, but let’s wait and see, for sure it’s the big hotels and they have already been against all the AL here once before.

  13. I have been to Madeira 27 times and due to come over again soon always staying in AL apartments. I love them, 25% the cost of an hotel on average, kind of thinking now what with all the new hotels going up maybe it’s time to say goodbye to an Island i adore and move on to pastures new.

  14. Seriously, what is Antonio’s problem with life? Is he not the full shilling?

    1. Well, I am smart enough to read that this news article refers to mainland Portugal which have different AL rules to autonomous regions. Are you Mike?

      1. Antonio, you know what your saying, yes this is from the mainland, so many people panic for no reason! This does not and will not apply on Madeira….

  15. Yes he’s not the full shilling however he is a local second class citizen ? with savings a uk pension own property car etc etc living the good life wineing and dinning sun shining ? and could not careless about the locals? which is why he will alway remain a second class citizen in their eyes?

    1. Apartments, but at the moment no word it will happen in Madeira. But with these big corrupt companies that the government support, anything could happen.

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