Alojamento Local (Local Lodging) – What is new in 2017

Further to my blog post published on the 13th of November 2014, entitled Alojamento Local (AL) – Local Lodging, the government increased the tax for this business activity through the State Budget Law for 2017.

Since this year, 35% (previously 15%) of the invoiced income (turnover) will be considered profit and therefore taxed under the simplified regime (regime simplificado). The remaining 65% (previously 85%) are therefore considered costs.

CGT in Portugal

Capital Gains Tax (CGT) is one of the major matters of interest when it comes to deciding where to buy a property, so it might be worthwhile knowing how it is calculated in Portugal.

If you have bought your property after the 31st of December 1988 and sell it with a gain, this gain will be taxed in two different ways, depending if your are resident or non-resident in Portugal. Properties purchased before 1989 are exempt from CGT. In any case, even if the property is sold without a gain or exempt from CGT, a tax declaration must be filed. Continue reading

Vilamoura Sold!

International investments in the world famous resorts of Vale de Lobo and Vilamoura have been massively reported in the media during the last couple of months.

Vilamoura is a resort town in the heart of the Algarve, covering more than 2,000 hectares, of which 70 are building land (for hotels and more than 5,000 villas and apartments), the prestigious 825 berth marina, awarded Best International Marina in 2015 by the Yacht Harbour Association, 5 golf courses, a golf academy, a casino and the controversial “Cidade Lacustre”, a project which contemplates the flooding of thousands of hectares of agricultural land to create a luxury “lake city”. Due to its status as a resort, it is run by a management company (Lusort) which is responsible for the town as a whole. Continue reading