| Rule | Details |
|---|---|
| Regulatory Status | Restricted — rules apply |
| Permit / License Required | Yes. AL must be registered before operating (prior communication via the Balcao Unico Eletronico; RNAL number). Since Funchal's Regulamento Municipal |
| 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 rep |
| Night / Day Cap | Unknown (no day cap found in sources reviewed) |
| 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 breache |
| Occupancy Limit | Unknown (national AL rules set a maximum capacity per establishment; sources reviewed give conflicting figures) |
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.
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.
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 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.
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 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..
Apply for your STR permit or registration directly through the official government portal.
Official Source ↗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
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.
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.
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..
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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