Portugal's short-term rental market is facing a bleak future as more than one-third of all units may be removed from the market. The government's recent efforts to address the housing crisis have targeted these rentals, which they believe have contributed to the shortage of affordable housing in cities like Lisbon. In a bid to combat the issue, short-term rental owners were required to provide evidence that their units were actively being used. Failure to do so could result in the cancellation of their licenses.
The deadline to submit the required information, including tax documents, was recently extended after the government's website experienced heavy traffic and crashed multiple times. However, even with the extension, it appears that a significant number of owners have failed to provide valid proof. Out of the 120,719 registered short-term rental units in the system, a staggering 45,747 license holders were unable to submit the necessary evidence, according to a statement by the government.
This means that more than one-third of short-term rentals in Portugal could be at risk of cancellation. Eduardo Miranda, president of the Short-Term Rental Association in Portugal, expressed concern over the process, stating that some of these licenses may be inactive already. Miranda highlighted potential issues faced by foreign owners living abroad, who are unable to provide evidence due to the requirement of a valid Portuguese identity card to access the government's website. Additionally, older individuals without proper documentation may also be negatively affected.
The government's crackdown on short-term rentals comes as part of a broader plan to address the housing crisis. Earlier this year, Portugal approved measures aimed at easing the situation, including the acceleration of new building permits and the ban on new short-term rentals in cities. The "golden visa" program, which grants residency to non-European investors in exchange for property purchases, is also set to be terminated.
While the government's efforts aim to alleviate the housing shortage and provide more affordable options for residents, the potential cancellation of a significant number of short-term rental licenses raises concerns. Miranda hopes that authorities will carefully consider the challenges faced by property owners before making any decisions.
The impact of this move on the short-term rental market could be significant, as it may lead to a decrease in available accommodation options for travelers and tourists. Additionally, it could further exacerbate the affordability issue by limiting income opportunities for property owners who rely on short-term rentals as a source of income. The long-term consequences and effectiveness of these measures in addressing the housing crisis remain to be seen.