The Government will ban the issuing of new local accommodation (AL) licences, making an exception only for licences for "rural accommodation in municipalities in the interior of the country where rural accommodation can make an important contribution to the economy of that territory".

The announcement was made this Thursday afternoon by Prime Minister António Costa at a press conference after the Council of Ministers approved a package of measures for the housing sector.

António Costa also said that the current licences for AL, already granted "will be subject to re-evaluation in 2030, to see if it is justified or not to keep them". After that, he explained that every five years "they will be subject to periodic revalidation".

The Government will also grant tax relief to those who put AL properties on the rental market. "We will allow all landlords who currently have property in local housing and transfer it to the rental market an income tax exemption from now until 2030 if they take their property out of local accommodation into housing market by the end of 2024." So those who between February 2023 and the end of 2024 transfer their ownership in AL to housing accommodation will be "entitled to zero taxation on property income until 2030".

The creation of an "extraordinary tax" on real estate property was also announced, which will go to the Housing and Urban Rehabilitation Institute (IHRU), but its value is yet to be defined.