Lisbon City Council Approves Short-Term Rental Limits in Residential Zones

Lisbon City Council approved an ordinance on July 9 that caps new short-term rental licences at 5 percent of residential units in designated central zones. The measure applies to properties listed on platforms for stays under 30 days and takes effect on 1 October. Residents seeking year-round housing in those districts stand to see reduced competition from tourist bookings.

The decision follows months of review by the municipal housing department after the national government updated its housing framework in early 2026. Lisbon recorded 28,400 short-term rental registrations in 2025, according to the city’s annual urban planning report. Council members cited the need to balance tourism revenue with local housing supply.

Families in Mouraria and Bairro Alto may notice more apartments listed for standard leases once existing licences expire. A household currently sharing a flat due to high rents could gain access to a two-bedroom unit previously used for weekly tourist stays. Service-sector workers employed near the riverfront would face fewer bidding wars during lease renewals.

Budget and Enforcement Figures

The 2026 municipal budget allocates 4.5 million euros to housing enforcement teams, including additional inspectors for the urban planning department. City documents project that 1,200 units could shift from short-term to long-term use within the first 18 months. Revenue from the existing 4 percent tourism tax on rentals remains unchanged under the new rules.

Implementation begins with a three-month registration window for current operators. The municipal inspectorate will conduct spot checks starting in November. Property owners who exceed the cap face fines of 5,000 euros per unlicensed unit.

Next steps include a public consultation period in September on zone boundary adjustments. The council will review the ordinance after 12 months of operation, using data from the housing department’s quarterly occupancy surveys. Residents can submit feedback through the city’s online portal or at district assembly meetings.