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Alojamento Local Licence in Madeira: How to Get It in 2026

If you plan to rent out a property in Madeira through Airbnb, Booking.com or another short-term rental platform, you will normally need an Alojamento Local registration, commonly called an AL licence. The process is relatively straightforward when the property and documents are prepared correctly. This guide explains how it works in 2026.

An Alojamento Local identification sign mounted on a sunlit white wall in Madeira

What is an Alojamento Local licence?

Alojamento Local is Portugal's registration system for properties providing temporary paid accommodation that do not meet the requirements to be classified as tourist developments.

You submit a comunicação prévia com prazo (a formal prior notification with a statutory decision period) to the municipality where the property is located. If the Câmara Municipal does not oppose the application within the legal period, the registration number issued through the electronic one-stop shop becomes the valid title for opening and advertising the accommodation. The property is then recorded in the RNAL.

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Step by step

How to get an AL licence in Madeira

  1. Check the property and choose the AL category

    Most holiday rentals are registered either as a moradia, an autonomous single-family house, or an apartamento. Confirm that the location, building and authorised use are compatible before proceeding.

  2. Register the activity with Finanças

    The person or company operating the property must have the appropriate accommodation activity registered with the Portuguese Tax Authority.

  3. Prepare the documents

    These normally include identification, property documentation, proof that the operator has the right to use the property, the tax activity declaration, accommodation details and the required declarations. Municipal rules can require additional documents.

  4. Prepare the property

    The accommodation must meet the applicable habitability, hygiene and fire-safety requirements. Smaller establishments for up to ten guests need accessible fire-extinguishing equipment, a fire blanket, first-aid equipment and the 112 emergency number displayed.

  5. Submit the AL application

    Registration is submitted through the Balcão Único Eletrónico. Assisted service may also be available through the municipality where the property is located.

  6. RNAL Number and Insurance

    Before starting the activity, provide proof of the required civil liability insurance. The minimum cover is €75,000 per claim, and additional fire cover applies when the unit is in a condominium building.

The municipality normally has up to 60 days to oppose an application. For properties located in designated áreas de contenção, the period can be up to 90 days.

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Verify the property's AL eligibility before the purchase.

Madeira is a fantastic destination for property investment, but before you commit, check the current AL status of the exact property. Eligibility depends on its address, type, authorised use and municipal rules.

Funchal is a good example. In 2026, the municipality introduced different rules for two containment areas:

  • Zone 2 (most of Funchal): Standalone houses (moradias) can easily be registered for short-term rentals.
  • Zone 1 (Sé historic centre): To preserve the historic core, new short-term rental licences are currently paused in this specific neighbourhood.

Rules can change. Ask us to check the latest AL position for a property before you buy.

We can take care of the whole process

If this feels complicated, let us handle it. Whether you are looking to buy a property or already own one and want us to manage it, we can take care of the entire AL process. We handle everything for you: from eligibility checks and paperwork to registration and full property management.

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