A wave of licence revocations and new regulatory restrictions is reshaping the short-term rental market in Portugal, with Lisbon at the centre of the changes.
From the end of 2025, the number of licensed tourist accommodations has been declining rapidly, moving well away from its recent peak of around 126,000 listings. Projections suggest that by the end of spring 2026, the total could fall below 90,000, marking one of the sharpest corrections in recent years.
A key driver of this shift has been the activation of enforcement mechanisms. Between December 2025 and early April 2026, authorities revoked around 7,000 licences, reducing the number of active listings to approximately 119,000.
Thousands of properties under review
At the same time, thousands of properties are currently under review for possible removal. Eduardo Miranda, head of the Local Accommodation Association, described the process as a “necessary correction”, stressing that the aim is to restore the credibility of official registries rather than simply reduce numbers.
The strongest pressure is being felt in Lisbon, where tourist accommodation density had reached particularly high levels in recent years. Within just a few months, around 40% of licences have disappeared, with more than 6,000 listings withdrawn from the market. Today, an estimated 12,000 properties remain in operation, mostly in the historic city centre, where the conflict between tourism activity and residents’ daily lives is most acute.
This contraction did not happen by chance. Most cancellations are linked to key legal and operational breaches, such as lack of mandatory insurance, non-compliance with regulations, or even owners abandoning the activity altogether.
At the same time, several municipalities across the country have moved to freeze new licences or impose stricter criteria. Cities such as Porto, Sintra, and Cascais are tightening enforcement in an effort to ease pressure on local housing markets.
In any case, Portugal appears to be moving away from the uncontrolled growth model of previous years, opting instead for a more balanced approach. Whether this strategy can successfully combine sustainable tourism with adequate housing availability remains an open question, with answers expected in the coming months.
