Renting out a home for 3 or 6 months is possible in Portugal, but only under certain conditions. Many landlords mix up two different regimes: the short or mid-term lease, which is a tenancy agreement, and Alojamento Local (AL), which is an accommodation service. Confusing them has tax and legal consequences.
This guide explains when a lease can run for less than 1 year, what the contract must say, how to register it with the Tax Authority and when a property becomes AL. It is part of our guides to lease agreements.
The essentials in 30 seconds
- A lease for permanent housing runs for at least 1 year. Anything shorter needs a transitory reason written into the contract.
- If the reason is missing, the term is deemed to be 1 year, even if the dates say less.
- A short lease is reported to the Tax Authority. AL is registered in the RNAL and carries other duties.
- Advertising the property as temporary accommodation can lead to it being presumed Alojamento Local.
Short stays: two different realities
“Short-term rental” covers two regimes. In the first, the landlord signs a tenancy agreement with a short term. In the second, the owner provides an accommodation service, usually to tourists. The table sums up the differences.
| Short/mid-term lease | Alojamento Local (AL) | |
|---|---|---|
| Nature | Tenancy agreement (Civil Code) | Accommodation service (Decree-Law 128/2014) |
| Minimum term | 1 year, or less if the contract states a transitory reason | No tenancy and no minimum lease term |
| Registration | Reported to the Tax Authority (Stamp Duty Form 2, “Modelo 2”) | Registered in the RNAL (Balcão Único Eletrónico) |
| Payment document | Electronic rent receipt | Invoice |
| Income tax | Category F, flat rate of 25% | Category B, simplified regime with a 0.35 coefficient (0.50 in containment areas) |
| Duties | Contract with reason and dates, stamp duty, receipts | Liability insurance, complaints book, reporting of foreign guests, tourist tax where it exists |
When a lease of less than 1 year is allowed
For a fixed-term contract for permanent housing, the Civil Code (art. 1095(2)) sets a minimum of 1 year and a maximum of 30 years. Paragraph 3 of the same article makes an exception: the minimum does not apply to leases for non-permanent housing or for special transitory purposes.
The accepted reasons are professional, education and training, or tourism. In practice, four situations are common:
- A displaced student, for a semester or an academic year (see our guide to renting to students and what the family can deduct in displaced student and IRS).
- A seconded worker, on a project of known length.
- A digital nomad, spending a few months in the country.
- A family renovating their own home, who needs somewhere to live during the works.
What a short-term contract must include
A short contract is more exposed to mistakes than a long one, because the exception only works if it is properly documented. Before signing, check these points:
- Transitory reason written out in full (for example, "attending a course", "professional secondment").
- Start and end dates of the contract.
- No automatic renewal: the contract should state that it does not renew automatically, and its end date.
- Rent and deposit, with the method and date of payment.
- Inventory and inspection of the property on entry and on exit.
You can start from a template with our lease agreement generator and add the reason and the dates. The clauses are explained in the temporary lease agreement guide.
Registering with the Tax Authority and issuing receipts
Every tenancy agreement, including short and holiday ones, is reported to the Tax Authority (AT) using Stamp Duty Form 2 (Modelo 2), by the end of the month after the contract starts.
- Gather the contract, both parties' tax numbers (NIF) and the property details (article number and unit).
- Report the contract on the Portal das Finanças. In the Purpose field (Finalidade), pick "Habitacional (Permanente)" or "Habitacional (Não Permanente)", as the case may be.
- Pay the stamp duty: 10% of one month's rent.
- Issue the electronic rent receipt for each payment. It is mandatory and cannot be replaced by an invoice.
- Declare the rent in your income tax return as category F income, at the flat rate of 25%.
The reduced rates for long contracts apply to permanent-housing leases of 5 years or more, so they do not reach short leases. The full walkthrough is in our guide to registering a lease with the Tax Authority, and the one for receipts in the electronic rent receipt guide.
When it becomes Alojamento Local
Alojamento Local is not a tenancy. Decree-Law 128/2014, amended by Decree-Law 76/2024, treats it as the provision of accommodation services. The law presumes a property is AL when it is advertised or brokered as tourist or temporary accommodation, or when it is let furnished and with services (such as cleaning) for less than 30 days.
That presumption can be rebutted by a tenancy agreement registered with the Tax Authority. So advertising a lease on tourist-accommodation platforms, in the language of a hotel, is an avoidable risk.
If the property really is AL, the owner needs:
- RNAL registration, by prior notice on the Balcão Único Eletrónico.
- Compulsory liability insurance, with a minimum of 75,000 euros per claim.
- A complaints book.
- Reporting of foreign guests (accommodation bulletin, SIBA, now AIMA).
- The municipal tourist tax, where one exists.
Municipalities can also define containment areas and suspend new AL registrations (Decree-Law 76/2024). Before buying or converting a property for AL, check the situation of the area with the town hall.
Temporary lease or Alojamento Local: which to choose?
There is no single answer. A temporary lease means less turnover and less service to the occupants, with rent taxed at 25% in category F. AL requires registration, insurance and guest handling, and is subject to containment areas.
To compare with your own numbers, use the profitability simulator, which compares Alojamento Local with long-term renting.
Frequently asked questions
What is the minimum term of a lease in Portugal?
For a fixed-term contract for permanent housing, the minimum is 1 year and the maximum 30 years (art. 1095(2) of the Civil Code). The minimum does not apply to leases for non-permanent housing or for special transitory purposes, as long as the reason is stated in the contract.
Can I rent out a home for 3 or 6 months?
Yes, if there is a transitory reason (professional, education and training, or tourism) and it is written into the contract. If the reason is missing, the contract is deemed made for 1 year. Check with a lawyer if you are unsure about your case.
What is the difference between Alojamento Local and a lease?
A lease is a contract governed by the Civil Code, reported to the Tax Authority, with a rent receipt and category F income tax. Alojamento Local is an accommodation service: it requires RNAL registration, insurance and a complaints book, issues invoices and is taxed under category B.
Do I have to register a short-term lease with the Tax Authority?
Yes. Every tenancy agreement, including short and holiday ones, is reported using Stamp Duty Form 2 (Modelo 2) by the end of the month after it starts. The Purpose field distinguishes "Habitacional (Permanente)" from "Habitacional (Não Permanente)". Stamp duty is 10% of one month's rent.
Can a lease be used for Alojamento Local?
No. Alojamento Local is not a tenancy, and a lease does not replace RNAL registration if the property is operated as AL. Conversely, a genuine lease registered with the Tax Authority can rebut the presumption that the property is Alojamento Local.
Sources: Civil Code, art. 1095; Decree-Law 128/2014, republished by Decree-Law 76/2024; Stamp Duty Form 2 instructions; CIRS, art. 31.
Note: informational article, not legal advice. Always confirm the current conditions with a professional.
