Is Lisbon's First Local Referendum on Short-Term Rentals Illegal? Here's What You Need to Know

The Controversy Surrounding Lisbon's Local Referendum on Short-Term Rentals

In November, a proposal for a Local Referendum against Short-Term Rentals (Alojamento Local) was submitted to the Lisbon Municipal Assembly (AML). The proposal posed two key questions:

1. Do you agree to change the Municipal Regulation of Short-Term Rentals in such a way that the Lisbon City Council orders the cancellation of registered short-term rentals in properties designated for housing within 180 days?
2. Do you agree to change the Municipal Regulation of Short-Term Rentals to prohibit short-term rentals in properties designated for housing?

This proposal aims to referendum an issue that overrides national law and incorrectly targets Short-Term Rentals as the cause of the housing crisis. If that were true, hotels, clinics, hair salons, political party headquarters, and beauty centers operating in residential buildings would also be blamed.

Important Facts About Short-Term Rentals in Lisbon

It's crucial to clarify some facts about Short-Term Rentals that this blind pursuit neglects:

• Residential Use: In Lisbon, it has always been mandatory to have residential use to register a Short-Term Rental.
• Current Suspension: Short-Term Rentals are currently suspended throughout the city, unlike other tourist offerings, which continue to operate, even in the historic center.
• Regulatory Proposal: A regulatory proposal was presented and voted on in the council, which will be subjected to public discussion.
• Miscalculated Zones: Containment zones are calculated without considering the ghost licenses that the Lisbon City Council does not monitor.
• Existing Legal Provisions: The law already allows for the cancellation of registrations by the municipality in specific cases.
• Demographics of Hosts: Most Short-Term Rental holders are individual entrepreneurs, with about 70% owning only one rental. The average age is over 50 years, and 47% are women.
• Job Creation: It is estimated that Short-Term Rentals have created around 40,000 jobs in Lisbon and contribute to the tourist tax that funds the maintenance of gardens and urban hygiene in a city that aims to be welcoming.

Legal Challenges and Political Dynamics

None of these points were considered in this initiative, which seeks to abolish Short-Term Rentals retroactively, meaning all existing licenses would be canceled if the first question passes the Constitutional Court's scrutiny.

A commission was created by the Municipal Assembly to oversee this process. The proposal was voted and approved in plenary with many doubts from some political parties regarding the legality of the questions. After approval, the Ministry of Internal Administration informed the Municipal Assembly that the signatories did not meet the legal requirements, lacking the minimum of 5,000 valid signatures due to various issues, including unidentifiable data and duplicate signings.

Despite this, the process was not declared null, and additional signatures were later accepted to supplement this dossier full of anomalies.

This phenomenon is now with the Constitutional Court, which will rule on the legality of the questions and the constitutionality of the dossier.

For now, populism has triumphed, which is unfortunate for those who wish to discuss the role that Short-Term Rentals and the broader tourism sector should play in Lisbon. We await the Constitutional Court's decision, which should restore truth and common sense to those who have made this absurd and irresponsible pursuit their banner. The end of Short-Term Rentals will not solve the housing supply issue.