Lisbon City Council has approved the proposal from the PSD/CDS-PP/IL leadership to amend the Municipal Regulation of Local Accommodation (RMAL), made possible with the support of Chega, so that the absolute containment index is reduced from 20% to 10%.

In a private meeting, the municipal executive began by voting on the two alternative proposals on the amendment of the RMAL, one from the PSD/CDS-PP/IL leadership and the other from the PS, with the intention that only one would be discussed and approved.

The proposal from the Socialist councillors, which advocated for more restrictive ratios for local accommodation (AL) – 5% in absolute containment and 2.5% in relative containment – ​​had the support of the seven councillors from left-wing parties, namely four from the PS, one from Livre, one from BE and one from PCP, which was insufficient against the remaining 10 members of the municipal executive and, therefore, was discarded, an official source from the municipality told Lusa.

The initiative, endorsed by the Housing and Urban Planning Councilor, Vasco Moreira Rato (an independent nominated by the PSD), had the support of the eight elected members of the PSD/CDS-PP/IL leadership and the two councillors from Chega, so that the ratio between AL and permanent housing units would be reduced, in areas of absolute containment, to "equal to or greater than 10%" and, in areas of relative containment, to "equal to or greater than 5% and less than 10%".

Within the discussion, BE, PCP and Livre proposed changes to Vasco Moreira Rato's proposal, aiming for more restrictive indices, suggesting that absolute containment should be "equal to or greater than 5%" and relative containment "equal to or greater than 2.5% and less than 5%", similar to what the PS defended. However, the changes were rejected, with votes against from the PSD/CDS-PP/IL leadership and Chega.

Chega also presented amendments to the PSD/CDS-PP/IL proposal regarding the monitoring of mandatory civil liability insurance for Local Authorities and the need to present proof that there was at least one exception in the previous year, explained Councillor Bruno Mascarenhas, recalling that the idea is to solve the problem of inactive establishments in the city.

The Chega party's proposal was approved with votes in favour from PSD/CDS-PP/IL, abstentions from PCP, and votes against from PS, BE, and Livre. It was incorporated into Vasco Moreira Rato's document, along with other amendments proposed by PCP.

Containment zone

In addition to reducing the indices, the approved proposal establishes the "creation of a single absolute containment zone at the municipal level, whenever the municipality reaches an index equal to or greater than 10%".

PS, BE, Livre, and PCP argued that this absolute containment zone at the municipal level should have an index equal to or greater than 5%, as was in the project submitted for public consultation. Currently, this index in the city is at 7.2%, which would prevent new registrations of short-term rentals.

Following the vote in the city council, the PSD/CDS-PP/IL proposal must be submitted to the Municipal Assembly, and the meeting for this purpose is scheduled for Tuesday, December 2nd.

Under the current Local Accommodation Regulations (RMAL), in effect since November 2019, areas of absolute containment are those with a ratio of short-term rental establishments to the number of permanent housing units "greater than 20%" (more than 20 short-term rentals for every 100 units), and areas of relative containment are those with a ratio "equal to or greater than 10% and less than 20%".

In areas of absolute containment, "no new registrations of short-term rental establishments are permitted", while in areas of relative containment, new registrations "may be subject to exceptional authorization by the Lisbon City Council, with express authorization".

Based on the PSD/CDS-PP/IL proposal, with data from November 1st, six Lisbon parishes are under absolute containment, specifically Santa Maria Maior (66.9%), Misericórdia (43.8%), Santo António (25.1%), São Vicente (16.1%), Arroios (13.5%) and Estrela (10.8%), and there is another one under relative containment, specifically Avenidas Novas (6.6%).

As for neighbourhoods, nine are under absolute containment – ​​Bom Sucesso, Belém, Ajuda, Alcântara, São Bento, São Sebastião da Pedreira, Picoas, Sapadores and Parque das Nações – and another 13 are under relative containment, according to the proposal.

This proposal includes the possibility, in areas of relative containment, of offering short-term rentals in the form of "rooms" in T2 or higher type dwellings that constitute the owner's habitual residence.

Other measures include the impossibility of exceptional AL (Local Accommodation) authorizations for properties acquired at public auction; the restriction of complementary uses, such as commerce, services, food and beverages, within lodging establishments; and the limitation of the transferability of the registration title in containment areas, safeguarding the exceptions provided for in the law.

In the current term (2025-2029), the Social Democrat Carlos Moedas governs in a minority, with eight elected members from the PSD/CDS-PP/IL coalition, falling one short of obtaining an absolute majority, which would require the election of nine of the 17 members that make up the capital's executive. In opposition are four councilors from the PS, one from Livre, one from BE, two from Chega, and one from the PCP.