What you need to know before opening a holiday rental in the Azores

Azores Smart Stay – foto 1

Article updated in October 2026.

Do you have an empty property and are thinking of opening a holiday rental in the Azores? In this article, we explain the main steps and answer the most common questions. In Portugal, this type of rental is called alojamento local (AL).

Why there are more and more holiday rentals in the Azores

Since the arrival of low-cost airlines, the number of tourists in the Azores has grown a lot. As a result, other types of accommodation appeared besides hotels. For example, it is hard to find a hotel in every part of São Miguel. However, you can find holiday rentals from north to south.

In addition, the Azores are a beautiful, safe and increasingly accessible destination. So more people look for comfortable houses with space.

Holiday rentals also grew because they are a profitable business. That is why many owners want to earn an income from a property they don’t use.

Owner thinking about opening a holiday rental in the Azores

If this is your case, read on. We explain the most important points of the registration in a simple way. For full details, see Regional Order (Portaria) no. 83/2016 of 4 August. It was amended by Portaria no. 23/2018 of 16 March and Portaria no. 101/2020 of 28 July (all in Portuguese).

What changed by 2026

  • In the Azores, registration still follows the regional rules of Portaria no. 83/2016, with the 2018 and 2020 amendments: an application at the town hall, an inspection and a registration number from the Regional Tourism Directorate.
  • The extraordinary contribution on holiday rentals, created nationally in 2023, does not apply to properties in the Azores (Regional Legislative Decree no. 1/2024/A).
  • A new regional holiday rental regime is being prepared. It may limit new registrations in some areas. So before you go ahead, check the rules with the town hall or talk to us.

Types of holiday rental

Your unit can be one of these types:

  • Rooms in the owner’s home (up to 3 rooms);
  • House;
  • Apartment;
  • Guest house (more than 3 rooms);
  • Hostel.

Documents for the registration

First, you need a valid use permit for the property. The only exception is buildings built before 7 August 1951 (Decree-Law no. 38.382).

Then you submit a completed application at the town hall, together with these documents:

  • A document proving you are entitled to apply;
  • A statement from a qualified technician about the electrical and gas installations and water heaters;
  • A floor plan of the property, showing the accommodation units;
  • The owner’s name and tax number, so the property records can be checked.

Inspection and registration number

After checking the documents, the town hall inspects the property. So at this stage the house must already meet every requirement.

If everything is in order, the town hall informs you and the Regional Tourism Directorate within 15 days. It states, for example, the maximum capacity and the number of rooms. Then you receive a registration number. You must show this number in every listing and advert.

The town hall also gives you an identification plate. Fix it outside, next to the entrance. It helps guests find the house and shows that it is licensed.

In short, it is a fairly quick process. If the house is well managed, it can bring a good income. If you prefer, we handle the whole registration for you, including the application at the town hall.

Would you like us to take care of everything?

AzoresBeds has managed holiday rentals in São Miguel since 2016. We handle your listings on Booking, Airbnb, our own website and other sites, as well as pricing, guests, cleaning, maintenance and guest registration with the authorities (SIBA). Meanwhile, you follow everything in the owner dashboard. See how we work or ask for a free assessment of your property.