AL containment zones — where you still cannot register in 2026

How containment (contenção) areas work, which cities and parishes restrict new Alojamento Local registrations, what happens to existing licences, and how to check an address before you buy.

Before you buy a property for short-term rental, one question decides the whole business case: can a new AL still be registered at that exact address? In a growing number of parishes, the answer is no.

What a containment zone is

Municipalities can classify parishes or defined areas as áreas de contenção, where new AL registrations are limited or suspended, to protect housing supply. The classification is local, is reviewed periodically, and can be tightened at short notice. Councils may also set quotas — a maximum ratio of AL units to dwellings in the area.

Where restrictions bite hardest

Funchal has suspended new AL registrations across large parts of the municipality.
Santa Cruz (Madeira) has restrictions in defined areas — Caniço in particular is worth checking parish by parish.
Lisbon operates absolute containment in the historic central parishes and quota-based limits elsewhere.
Porto restricts the central and riverside parishes.
Several Algarve and coastal councils have introduced or are consulting on their own limits.

Our AL legal status page tracks the current picture for the regions Chave AL covers.

What happens to existing registrations

Containment applies to new registrations. An AL already registered and operating is generally unaffected while it stays compliant and in continuous operation. The risks to an existing licence are different ones: lapse through non-operation, missing insurance, condominium opposition, or transfer rules on sale.

That last one matters most: in a containment area, an existing AL number can be far more valuable than the property itself — and the rules on whether the registration survives a change of owner are strict. See transferring an AL registration.

How to check an address properly

1. Identify the parish (freguesia), not just the city.

2. Read the municipality's current AL regulation and any containment resolution — they are published locally, and the map matters more than the headline.

3. Ask the council's urbanism department in writing. A verbal "should be fine" from an estate agent is worth nothing.

4. If you are buying an existing AL, verify the RNAL number, the modality, the capacity and that the registration is active.

The practical rule

Never price an AL purchase on rental projections until the address is confirmed as registrable. In containment parishes, buy the licence, not the promise.