If your property is not going to be your full-time permanent home, you may decide to generate income by renting it out to tourists and holidaymakers.

As Portugal can be a fairly bureaucratic country, there are numerous legal and logistical steps that need to be taken before you can actually place your property on the market and earn some money.

The first thing you will need to do is obtain an Alojamento Local (letting licence) which allows you to legally let out your property. To receive this, you must be inspected by the local camara (town hall) for adherence to local regulations. Once you have this, it’s a good idea to hire a local management company who can take control of the letting process for you. They will be able to give you assistance with everything from maintenance, advertising, cleaning and everything else to do with actually letting out your property, including advising you on everything you need to ensure that your property is legally compliant – such as a first aid kit or a complaints book.

It’s a good idea to hire a local management company who can take control of the letting process for you.

Choosing the right management company

There are numerous management companies out there, so it’s a good idea to spend some time researching companies in advance – you don’t want to end up hiring a company who take you for a ride! Search for recommendations on expat forums, and speak to your estate agent about the best options. It’s very important though that you do not even advertise your property to tenants until the process is complete – as you could be charged significant fines.


When renting out your property in Portugal, it’s important to make sure that you have the right insurance in place.

Think about insurance

The last thing you will need to consider before you list your property for rental is the appropriate insurance. You must ensure that the policy you choose is fit for the purpose of renting your property out, rather than a policy for a holiday home. We can put you in touch with a company who specialises in insuring overseas property for holiday rentals.

List your property

Once you have finished all the legislation and legal matters, you can get your property listed – and hopefully start making money from tenants! The most common way of getting your property out there is by listing it on holiday home portals, but there are a number of other advertising options available – give us a call to discuss what will work best for you. Don’t take your property off the market once you have rented it out; this will ensure you are still out in the public eye.

Get in touch with a lawyer

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