Funchal

Portugal
Restricted
Last updated: 2026-10-10  ·  Last verified: 2026-10-16  ·  Region: International

At a Glance — Funchal Airbnb & STR Rules

RuleDetails
Regulatory StatusRestricted — rules apply
Permit / License RequiredYes. AL must be registered before operating (prior communication via the Balcao Unico Eletronico; RNAL number). Since Funchal's Regulamento Municipal
Tax RateFunchal municipal tourist tax: EUR 2 per guest per night, charged for a maximum of 7 nights, in force since 1 Oct 2024 (hotels and AL). Exemptions rep
Night / Day CapUnknown (no day cap found in sources reviewed)
PenaltiesNational AL fines (per gov.pt): general or safety requirement breaches EUR 125-3,250 for individuals and EUR 1,250-32,500 for companies; minor breache
Occupancy LimitUnknown (national AL rules set a maximum capacity per establishment; sources reviewed give conflicting figures)
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Funchal Airbnb & Vacation Rental Regulation Overview

Funchal Short-Term Rental Regulations Overview

Short-term rentals in Funchal are allowed but subject to significant restrictions under local regulations as of 2026. Hosts operating on Airbnb, VRBO, or other vacation rental platforms must obtain proper licensing: Yes. AL must be registered before operating (prior communication via the Balcao Unico Eletronico; RNAL number). Since Funchal's Regulamento Municipal de Gestao dos Estabelecimentos de Alojamento Local.

Tax Requirements for Airbnb Hosts in Funchal

Short-term rental operators in Funchal should be aware of these tax obligations: Funchal municipal tourist tax: EUR 2 per guest per night, charged for a maximum of 7 nights, in force since 1 Oct 2024 (hotels and AL). Exemptions reported include residents of the Madeira autonomous region, children (age cut-off reported as 12 or 13.

Hosting Rules and Restrictions in Funchal

Key operational rules for vacation rental hosts in Funchal include: Rental day cap: Unknown (no day cap found in sources reviewed). Occupancy limit: Unknown (national AL rules set a maximum capacity per establishment; sources reviewed give conflicting figures).

Zoning and Location Requirements in Funchal

Zoning considerations for short-term rentals in Funchal: Regulamento 787/2026 defines two containment areas (areas de contencao) based on the location and concentration of AL, set out in its Annex I. Press reports that its main measure bans new AL licences . Density rules: Funchal suspended new AL registrations in collective housing buildings from September 2025 (six months, then extended in February 2026) until the muni. Insurance: Yes. Civil liability insurance is mandatory for AL under the national regime, and proof must be subm.

Penalties for Non-Compliance in Funchal

Hosts who fail to comply with Funchal's short-term rental regulations may face enforcement action. National AL fines (per gov.pt): general or safety requirement breaches EUR 125-3,250 for individuals and EUR 1,250-32,500 for companies; minor breaches EUR 50-750 / EUR 250-7,500. Registration can be .

Platform Obligations in Funchal

Platform obligations for services like Airbnb, VRBO, and Booking.com operating in Funchal: Platforms that list or sell AL must require and display the RNAL registration number..

Full Regulatory Details

Regulatory Status
Restricted
License / Registration
Yes. AL must be registered before operating (prior communication via the Balcao Unico Eletronico; RNAL number). Since Funchal's Regulamento Municipal de Gestao dos Estabelecimentos de Alojamento Local (Regulamento 787/2026) took effect, new AL registrations are not allowed in collective housing buildings (apartment blocks); houses (moradias) and rooms (quartos) can still be licensed.
Night / Day Cap
Unknown (no day cap found in sources reviewed)
Occupancy Limit
Unknown (national AL rules set a maximum capacity per establishment; sources reviewed give conflicting figures)
Tax Rate
Funchal municipal tourist tax: EUR 2 per guest per night, charged for a maximum of 7 nights, in force since 1 Oct 2024 (hotels and AL). Exemptions reported include residents of the Madeira autonomous region, children (age cut-off reported as 12 or 13 - check the regulation) and guests with a disability rating of 60% or more. In Sept/Oct 2026 the council unanimously approved a proposal to double the rate to EUR 4 per night; it was going to 30 days of public consultation with collection targeted from January 2027 - not yet in force.
Zoning Restrictions
Regulamento 787/2026 defines two containment areas (areas de contencao) based on the location and concentration of AL, set out in its Annex I. Press reports that its main measure bans new AL licences in collective housing buildings, while houses and rooms remain licensable. Exact boundaries of the two areas were not confirmed.
Density Rules
Funchal suspended new AL registrations in collective housing buildings from September 2025 (six months, then extended in February 2026) until the municipal regulation came into force in late June 2026. Existing, validly registered units are not revoked.
Insurance Required
Yes. Civil liability insurance is mandatory for AL under the national regime, and proof must be submitted to the municipality; missing proof can lead to suspension or cancellation.
Platform Obligations
Platforms that list or sell AL must require and display the RNAL registration number.
Compliance Notes
Funchal now has its own AL regulation (Regulamento 787/2026, published 29 June 2026) with two containment areas, and new registrations in apartment buildings are not being accepted; houses and rooms can still be registered. Existing registrations continue. Hosts must collect the EUR 2 per person per night tourist tax (max 7 nights) and should expect a proposed rise to EUR 4, targeted for January 2027 if approved after consultation.
Effective Date
2026-06-29
Key Notes
Funchal bans new AL in apartment buildings under its June 2026 regulation and charges a EUR 2/night tourist tax, with a doubling to EUR 4 proposed for 2027.
Penalties
National AL fines (per gov.pt): general or safety requirement breaches EUR 125-3,250 for individuals and EUR 1,250-32,500 for companies; minor breaches EUR 50-750 / EUR 250-7,500. Registration can be cancelled.
Additional Context
Madeira applies the national AL regime (DL 128/2014) through Decreto Legislativo Regional 13/2015/M, which hands Turismo de Portugal's powers in the region to the Direcao Regional do Turismo and inspection to the regional inspectorate (IRAE). Cruise passengers have paid a separate EUR 2 sea-arrival tax since 1 Jan 2025. Funchal had about 3,600 AL units in March 2026, and the council flagged irregularities in about 100 units in April 2026.
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Frequently Asked Questions

Is Airbnb legal in Funchal?

Airbnb and short-term rentals are legal in Funchal but subject to restrictions. Hosts must comply with local permit requirements and zoning rules. Funchal now has its own AL regulation (Regulamento 787/2026, published 29 June 2026) with two containment areas, and new registrations in apartment buildings are not being accepted; houses and rooms c

Do you need a permit for Airbnb in Funchal?

Yes. Funchal requires the following for short-term rental operation: Yes. AL must be registered before operating (prior communication via the Balcao Unico Eletronico; RNAL number). Since Funchal's Regulamento Municipal de Gestao dos Estabelecimentos de Alojamento Local (Regulamento 787/2026) took effect, new AL registrations are not allowed in collective housing buil.

What taxes apply to short-term rentals in Funchal?

Short-term rental hosts in Funchal are subject to the following tax obligations: Funchal municipal tourist tax: EUR 2 per guest per night, charged for a maximum of 7 nights, in force since 1 Oct 2024 (hotels and AL). Exemptions reported include residents of the Madeira autonomous region, children (age cut-off reported as 12 or 13 - check the regulation) and guests with a disabil.

What are the penalties for illegal Airbnb hosting in Funchal?

Hosts who operate without proper permits in Funchal may face enforcement. National AL fines (per gov.pt): general or safety requirement breaches EUR 125-3,250 for individuals and EUR 1,250-32,500 for companies; minor breaches EUR 50-750 / EUR 250-7,500. Registration can be cancelled..

What are the key STR compliance requirements in Funchal?

Funchal bans new AL in apartment buildings under its June 2026 regulation and charges a EUR 2/night tourist tax, with a doubling to EUR 4 proposed for 2027.

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