Lisbon cancelled 40% of its short-term rental licences. Zero new ones have been issued since.

Lisbon cancelled 40% of its short-term rental licences this year. Zero new ones have been issued since. It's Sunday, 14 June. Twenty-six degrees. Here's what you need to know.

🌬️ AIR QUALITY: 20 (Good).

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LISBON CANCELLED 6,765 SHORT-TERM RENTAL LICENCES. THAT'S 40% OF THE CITY'S TOTAL. ZERO NEW ONES HAVE BEEN ISSUED SINCE.

In February, the Lisbon City Council completed a review of the city's short-term rental (Alojamento Local) registrations and cancelled 6,765 of them. Out of roughly 19,000 registered properties, that is 40% gone in a single administrative sweep. The city currently has 11,774 active registrations. It has issued zero new licences since the purge.

The trigger was insurance. Portuguese law requires all AL operators to hold mandatory liability insurance (minimum €75,000 coverage). Thousands of registered properties either never had it, let it lapse, or never operated in the first place. The council called them "phantom registrations": properties that existed on paper, occupied a slot in the national register, and contributed to the containment ratios that determine whether a neighbourhood can accept new listings, without ever hosting a single guest.

The cancellations are not limited to Lisbon. It was reported Friday that more than 10,000 registrations have been removed nationally, with Porto, Lagoa, and Lagos completing similar reviews. The national total of registered short-term rentals, which peaked near 126,000, is expected to drop below 90,000 by mid-2026.

On top of the municipal purge, EU Regulation 2024/1028 took effect on May 20. It requires Airbnb, Booking.com, Vrbo, and all other short-term rental platforms to verify registration numbers against national databases and automatically delist non-compliant listings. Platforms must also share monthly activity data (nights rented, guest counts, property addresses) with local authorities. The days of listing a property without a valid RNAL number and hoping nobody notices are over.

For renters and housing advocates, the purge is the clearest signal yet that the city is serious about enforcement. Whether removing 6,765 listings translates into more long-term rental stock depends on how many of those properties were actually operating and how many owners choose to switch to the long-term market rather than exit entirely.

For anyone who owns or operates a short-term rental in Lisbon, the implications are immediate. Check your RNAL registration status. Confirm your insurance is valid and uploaded. If your registration was cancelled, you are no longer legally operating. If you're considering entering the market, six parishes in Lisbon are under absolute containment (no new licences permitted), and the remaining parishes operate under ratio-based restrictions that are tightening as phantom registrations are removed.

Bottom line: Lisbon's short-term rental market lost 40% of its registered properties in a single review. The EU is forcing platforms to verify every remaining listing. If you operate an AL, make sure your paperwork is in order. If you don't, the city is making room.

⚡ QUICK HITS

The national health system's computer crashed this week, halting prescriptions and medical records. The SNS suffered a system-wide failure that blocked electronic prescriptions and patient record access across the country. Pharmacies couldn't process prescriptions. Doctors couldn't access histories. If you depend on regular medication, check with your pharmacy whether the system is back up before making the trip.

Energy costs jumped 13.1% and Euribor hit new highs. The combined impact is adding an estimated €100-150 per year to household bills for anyone on a variable-rate mortgage with standard energy consumption. With the Bank of Portugal's DSTI now at 45% and the "abrupt correction" warning still hanging over the market, the pressure on household budgets keeps building.

Portugal's first World Cup match is Wednesday. DR Congo in Houston, 6pm Lisbon time. Bars across Bairro Alto, Cais do Sodré, and Santos will screen it. Ronaldo's sixth World Cup. If you haven't picked a spot yet, go early. The good seats fill fast.

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🍽️ SPOT OF THE DAY

NICOLAU LISBOA (BAIXA)

Sunday morning in Baixa. The tourists are still in bed. The locals are moving slowly. And Nicolau, the brunch spot on Rua de São Nicolau that has quietly become one of the most popular cafés in central Lisbon, opened at 8:30.

The room is bright, tropical, and designed to make you feel like the weekend started the moment you sat down. Mint green walls, Eames chairs, neon signs, and hand-painted Portuguese tiles that nod to the building's history while the menu nods to Brazil, California, and everywhere in between.

The pancakes are the reason most people come the first time. The banoffee stack (banana, toffee, Biscoff crumble, homemade cream) has been called the best pancakes in Europe by more than one reviewer, which is a large claim that the pancakes somehow justify. The eggs Nicolau is the signature savoury: their house take on eggs Benedict. The açaí bowls are generous and well-balanced. The avocado toast is done properly. The flower power salad is the lighter option that people order when they feel guilty about the pancakes and then wish they'd ordered the pancakes.

Fresh juices, specialty coffee, and a vegan brownie that non-vegans eat without realising. Prices are reasonable for what you get: around €10-15 for a full brunch, €20-25 with drinks.

The honest notes: it gets busy fast on weekends (the terrace fills by 11am), service can feel rushed when the room is full, and you may wait for a table after noon. None of which stops anyone from coming back.

→ Pancakes, açaí, and the kind of Sunday morning Baixa does better than anywhere. Find them here ←

Baixa, on Rua de São Nicolau.

Insider tip: Arrive at 9am on a Sunday and walk straight in. By 11am you're waiting. Order the banoffee pancakes and a fresh juice. Sit inside where the light is best. And don't fight the urge to order the vegan brownie afterwards. Everyone does.

📅 WHAT'S ON

See you tomorrow morning.