Portugal bans new Airbnbs in its cities

Investment incentives have sent living costs soaring
portugal


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Airbnb has found itself in the middle of more controversy and is facing some of its heaviest location-based regulations from the Portuguese government.

In the face of soaring rent prices, Portuguese leadership introduced a string of new rules, one of which prohibits the addition of new Airbnbs in most cities. While those already operating should be able to continue, any new licenses to host will be rejected. Exceptions will be made in smaller towns and rural areas. It’s unclear when the new rules will be implemented.

Portugal incentivized foreign investment for years using its controversial Golden Visa, effectively offering an opportunity to buy Portuguese residency over a five-year period. The program was successful in practice, but the injection of wealthy new arrivals drove living costs through the roof, bewildering the general population – the poorest in Western Europe. The visa program has now been scrapped along with new Airbnbs. The recently announced Digital Nomad Visa is currently unaffected.

It’s an issue mirrored worldwide, including the US, and marks an ethical dilemma for travelers who rely on the often more affordable accommodation the platform offers. While no other country has introduced quite as severe regulation yet, it’s likely to become a recurring news story. As a previous mayor of Lisbon suggested, “There is no city that can remain authentic if it isn’t able to maintain its residents.”

On your next visit to Portugal, why not check out one of our favorite hotels instead of an Airbnb?

Editorial Disclaimer: Opinions expressed here are the author’s alone. This post contains references to products from one or more of our partners and we may receive compensation when you click on links to those products.

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