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Rental Licence Bureaucracy to be Eased?

The government has approved a decree at its most recent Council of Ministers meeting that is primarily designed at accelerating the process of licensing venues, including holiday villas and apartments.

The decree serves to rid existing legislation (law decrees 167 of 1997 and 55 of 2002) of excessive red tape that made it almost impossible for owners of villas and apartments, and even entire resorts, to obtain the required licensing required to legally let out these properties to tourists.

Among key changes to the decree announced by the Minister of the Presidency, Pedro Silva Pereira, are that venues without a licence can operate and house tourists while waiting for an inspection of the venue to be conducted by town halls.

In the absence of the required licence (Licença de Utilização Turística or LUT) resorts can assume responsibility for the safe functioning of the property being let out to tourists.

According to the State-Secretary for Tourism, Bernardo Trindade, prior to the drawing up of this new law “resorts would end up opening their doors to the public without a LUT as the authorities would take their time in conducting an inspection”.

Bernardo Trindade hopes with the approval of this law decree, the licensing process will be simplified while “always ensuring that safety issues are safeguarded”.

Another alteration is that operators can now request an inspection (vistoria) even before a holiday home or resort is complete.

As is the case with existing, but unlicensed venues, town halls have 30 days within which to conduct an inspection to issue a LUT.

Once this period has lapsed and paperwork remains outstanding, parties responsible for a tourism project can sign a declaration vouching for the building’s safety.

Five days later, the venue can legally open its doors to the public.

Once a local council has issued a licence, it is required to inform the DGT (Tourism Bureau) that will publicly list all legal properties available for letting to tourists in Portugal.

Meanwhile, Minister Pedro Silva Pereira hailed the new decree as being a “diploma that simplifies administrative issues and is directed at removing unjustified obstacles that were thwarting the development of economic activities”.

Shortly after the publication of this decree, however, The Greens attacked the government for “giving in to tourism and construction lobbies”.

In a press statement, The Greens say these new measures “are extremely disturbing” as politicians have now “assumed the role of Pontius Pilate, and have washed their hands of any responsibility when it comes to the violation of safety norms or environmental restrictions”.

It also criticised the fact that venues can open their doors without a licence, saying, “Situations are certain to arise where tourists’ safety and the environment will be placed at risk”.

Meanwhile, current figures show nearly 200,000 illegal 'beds' are let out in the Algarve each year.

Furthermore, Elidérico Viegas, President of the Algarve Hotel and Tourist Resort Association (AHETA) pointed out recently "More than a third of all British passengers who land at Faro airport are accommodated in non-registered rental properties". As reported in the Portugal News

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