Regulatory · Live-updated · Last edit April 2026
Alojamento Local in Madeira 2026 - the parish-by-parish map
Decree-Law 76/2024 handed the Alojamento Local framework from central government to each of the 11 Madeira concelhos. Funchal suspended new licences in August 2025. Machico is drafting its own brake. The rules are now set municipality by municipality - and the map changes as each câmara votes.
What DL 76/2024 changed
Before the July 2024 decree, AL licensing was national. National containment zones existed but enforcement was inconsistent, and transferability of AL licences between owners was restricted. DL 76/2024 moved the rules to the 11 concelhos. Each municipality can now:
- Declare containment zones (áreas de contenção) with parish-level or sub-parish granularity.
- Suspend new AL registrations for up to 6 months at a time, renewable.
- Set quotas on AL per building, per freguesia or per concelho.
- Restore transferability of existing licences with their own stamp-duty rules.
The upside: more responsive local policy. The downside for buyers: a patchwork where the rules in Calheta differ from Funchal, which differ from Machico, which differ from Santa Cruz.
Funchal: suspended since August 2025
The Funchal Câmara Municipal resolved on 7 August 2025 to suspend all new Alojamento Local registrations for six months, with a review due in February 2026. Existing AL licences continue to operate. Transfers between owners have been paused pending review.
Practical impact for buyers: if your Funchal purchase thesis depends on registering a new AL, stop. If you are buying an apartment with an existing AL licence, your lawyer must verify whether the existing licence transfers cleanly - this is currently jurisdictionally ambiguous and lawyers are charging a premium to opine.
Machico: consultation underway
Machico's Câmara Municipal is conducting public consultation on its own AL containment zones through Q2 2026. The likely model follows Funchal - contention on the historic centre and tourism-saturated parishes, continued openness inland. Follow the municipal assembly calendar.
The rest of the island
As of April 2026, the remaining nine concelhos (Calheta, Santa Cruz, Ribeira Brava, São Vicente, Câmara de Lobos, Ponta do Sol, Santana, Porto Moniz, Porto Santo) have not declared contention zones. New AL registrations proceed via the standard Balcão do Empreendedor municipal flow. This could change concelho-by-concelho; we maintain per-concelho status below and re-date when a municipal vote changes it.
AL status by municipality
Funchal
AL SuspendedNew AL licences suspended (Aug 2025 - review Feb 2026)
Calheta
AL OpenOpen - no municipal suspension (as of 2026-04-24)
Santa Cruz
AL OpenOpen - no municipal suspension (as of 2026-04-24)
Ribeira Brava
AL OpenOpen - no municipal suspension (as of 2026-04-24)
São Vicente
AL OpenOpen - no municipal suspension (as of 2026-04-24)
Câmara de Lobos
AL OpenOpen - no municipal suspension (as of 2026-04-24)
Ponta do Sol
AL OpenOpen - no municipal suspension (as of 2026-04-24)
Machico
AL Under reviewMunicipal AL brake under consultation (2026)
Santana
AL OpenOpen - no municipal suspension (as of 2026-04-24)
Porto Moniz
AL OpenOpen - no municipal suspension (as of 2026-04-24)
Porto Santo
AL OpenOpen - no municipal suspension (as of 2026-04-24)
What buyers should do next
- Choose the concelho based on your residency/lifestyle fit first, not the AL regime. The regime changes; the microclimate doesn't.
- Before offering on an AL-targeted property, get your lawyer to confirm current status with the municipal AL officer in writing.
- Model your yield with the AL rule at its most conservative (assume Funchal-style suspension could arrive within 12 months).
- Check the condominium minutes - individual buildings can ban AL even where the municipality allows it (brief §4).