Lisbon Approves Local Referendum on Short-Term Rentals
This historic decision sets the stage for what could be Portugal’s first citizen-driven referendum and a critical turning point in addressing Lisbon’s housing challenges.
What?
In a historic decision, the Lisbon Municipal Assembly (AML) has approved a proposal for a local referendum on short-term rental policies.
The initiative, led by the Movimento Referendo pela Habitação (“Housing Referendum Movement”), seeks public input on whether to significantly restrict short-term rentals in residential properties.
The proposal garnered majority support from the Socialists (PS), the Left Block (BE), the ecosocialist Livre, the Greens PAN, the Greens PEV, and unaffiliated deputies Daniela Serralha and Miguel Graça.
The Communists (PCP) and Greens MPT abstained.
Opposition came from the right-wing party: the Social Democrats (PSD), the Christian Democrats (CDS), the Liberals, the far-right Chega, the People’s Monarchist Party (PPM), conservatives Aliança, and independent deputy Margarida Penedo.
Key Questions to Be Reviewed
The referendum proposal, which now moves to the Constitutional Court for review, includes two questions:
Should the Lisbon City Council cancel all short-term rental registrations in residential buildings within 180 days?
Should new short-term rental registrations in residential properties be prohibited?
The Constitutional Court has up to 25 days to determine the legality of the referendum. If approved, Lisbon Mayor Carlos Moedas will set a date for the public vote.
A Movement Rooted in Housing Advocacy
The citizen-led movement spearheaded the initiative, submitting approximately 6,600 valid signatures from Lisbon residents—well above the 5,000 required—to the AML on November 8.
This marks the first citizen-led referendum initiative in Portugal’s democratic history.
“We hope the campaign leads to a ‘yes’ vote, so Lisbon’s homes can be freed from the weight of tourism,” said Rosa Santos, an MRH member.
“We dream of a future where neighborhoods are vibrant, residential spaces fostering community and solidarity.”
A moment from the debate in the Lisbon Municipal Assembly this week:
Divergent Views in Debate
The proposal has sparked significant debate. Teresa Mamede, representing the Movement, highlighted the unprecedented nature of the initiative as a tool of direct democracy enshrined in Portugal’s Constitution. Isabel Pires (BE), who authored the committee report on the referendum, called it a “landmark moment” in Portuguese democracy.
Supporters like José Sobreda Antunes (PEV) and Natacha Amaro (PCP) linked unregulated short-term rentals to Lisbon’s housing crisis, citing unsustainable home prices and forced displacement of residents.
Meanwhile, António Morgado Valente (PAN) acknowledged the economic benefits of short-term rentals but stressed the urgent need to address Lisbon’s rental market shortages.
Opponents, including Angélique Da Teresa (Liberal Initiative), criticized the referendum as a “witch hunt” against short-term rentals, which they argued unfairly targets small property owners while ignoring other commercial uses of residential properties.
Ana Mateus (PSD) questioned the legal validity of the proposed questions, asserting they involve issues regulated by national law.
What’s at Stake?
If the referendum is held and the public supports the proposed restrictions, it could lead to the cancellation of more than 19,000 short-term rental registrations in Lisbon.
Advocates argue this would free up housing stock for residents, alleviating the city’s housing crisis.
I am so happy to read this. It isn't small local landlords that have created this problem but investment owned properties and they should be eliminated. Let's hope this goes through and then Porto should be next.
Be very careful what you wish for…
This will severely harm Portuguese families and who depend on the income. It’s important to differentiate between investment fund owned, and locally owned.
Other cities that banned ALs resulted in empty apartments, and very high hotel rates.