Gyms, Yoga Studios & Sports Facilities in the Algarve: How to Launch a Fitness Business in Portugal

With a growing population of health-conscious locals, expats, and tourists, the Algarve offers a promising market for fitness and wellness businesses. From boutique yoga studios in Lagos to outdoor training spaces in Vilamoura or full-service gyms near urban centres, the region combines demand with lifestyle appeal.

But opening a fitness facility — whether it’s a gym, a yoga space, a personal training studio, or a sports centre — requires careful planning. This includes property use verification, licensing, compliance with safety and hygiene regulations, and adapting your fiscal structure to Portuguese law.

This guide walks you through what’s needed to legally open and operate a fitness or wellness business in the Algarve.

Types of Fitness & Wellness Facilities You Can Open

Depending on your concept, there are several property types and formats you can explore:

🏋️ Full-Service Gyms

• Typically require larger spaces (150–500+ m²)
• Often located in mixed-use buildings, business parks, or standalone units
• Must comply with structural safety, accessibility, fire safety, and hygiene regulations

🧘 Yoga / Pilates Studios

• Smaller spaces (50–150 m²) with open floor plans and calm settings
• Require less infrastructure but must still meet legal occupancy and hygiene rules
• Often located in town centres, tourist zones, or residential-commercial buildings

🥊 Personal Training Studios or Boutique Fitness

• Ideal for niche offerings (boxing, CrossFit, reformer Pilates, dance, etc.)
• May include locker rooms, showers, and reception areas
• Easier to scale or relocate if demand grows

🏐 Outdoor Sports Centres / Courts

• Include padel, pickleball or tennis courts, cross-training areas, or multi-sport facilities
• May be set up in rustic or semi-urban zones with proper land classification
• Typically require tourism or service use approval for any built structures

Licensing and Legal Use Requirements

Opening a fitness business in Portugal involves verifying that your property is licensed for the intended use and that your business complies with national safety and consumer protection laws.

✅ Property Requirements:

• Must have a Licença de Utilização specifying “Comércio” or “Serviços” use
• For larger or group activities, soundproofing and mechanical ventilation may be required
• Fire safety (extinguishers, exits, signs) must be certified

✅ Business Setup:

• Register as a sole trader (ENI) or form a company (LDA)
• You’ll need a CAE code (economic activity classification) that matches your offering
  Common examples include:
  • 93130 (Fitness and sports facilities)
  • 96040 (Wellness and spa services)
  • 86906 (Alternative therapies)

✅ Hygiene and Safety Protocols:

• Mandatory first-aid kit, cleaning protocols, and ventilation
• Insurance covering public liability and staff (if applicable)

Do Instructors or Trainers Need Certification?

Yes. Any activity involving physical guidance or fitness instruction must be carried out by certified professionals. This includes:

• Personal trainers
• Group fitness instructors
• Yoga or Pilates teachers (for structured group sessions)

Certifications must be recognized by the Portuguese Institute for Sport and Youth (IPDJ) or valid within the EU.

Choosing the Right Location

Your ideal location depends on your business model and audience:

Location Type	Best For	Notes
Town Centre Studios	Yoga, PT, boutique classes	Accessible, but may face noise limits
Industrial Units	Large gyms, boxing, CrossFit	Good space/flexibility, lower rents
Tourist Zones	Surf fitness, wellness retreats	May need seasonal pricing model
Rustic/Outskirts	Outdoor gyms, padel, retreats	Zoning is key; requires TER or mixed use

Startup and Operating Costs

Cost Category	Estimated Range (€)
Rent (100–300 m²)	€800 – €3,500/month
Renovation & Equipment	€15,000 – €100,000+
Legal setup & licensing	€1,500 – €5,000
Insurance & certification	€1,000 – €2,500 annually
Staff wages (if applicable)	€1,200+/employee/month

⚠️ Always factor in soundproofing, bathroom/shower installations, and municipal permit delays.

Common Pitfalls to Avoid

• ❌ Assuming any open-plan space is fit for physical activity
• ❌ Not verifying the property’s legal use before renting or buying
• ❌ Underestimating safety/legal costs for fire exits or ventilation
• ❌ Operating with uncertified instructors (subject to fines)
• ❌ Renting in a building where the condominium restricts noise or usage

Do You Need to Register for VAT?

• If your annual turnover exceeds €13,500, you must register for VAT (IVA)
• Fitness businesses often charge 23% VAT on memberships or services
• A proper invoice system and certified accountant are mandatory