Public Liability Insurance for Holiday Accommodation

Public liability cover has always been included in the building section of a home insurance, often referred to as public liability for family (responsabilidade civil familiar) but this does not cover anyone renting the property.

As per article 13-A of law 62/2018 from August 22nd, revised by article 347 of law 71/2018 from December 31st, all operators of short-term rental properties (titulares da exploração) are obliged to obtain a public liability insurance for their property with a minimum coverage of 75,000€ per liability case. Continue reading

Local Lodging and the Simplified Tax Regime in 2018

After the heavily criticised proposal of the State Budget for 2018, presented on the 13th of October 2017, which aimed to drastically change the Simplified Tax Regime (Regime Simplificado), the government has now presented a milder version.

Nevertheless, the new rules will affect most of the self-employed professionals such as lawyers, architects, doctors, journalists and owners of holiday rental properties, with an annual invoiced income over 27,360€. Continue reading

Alojamento Local: CGT and Asset Allocation

As described in my blog post CGT in Portugal, the sale of a property may cause CGT liabilities when, in simple terms, the sales price (valor de realização) is higher than the purchase price (valor de aquisição).

Owners of AL properties have been caught by surprise when they heard about potential CGT liabilities associated to the business activity of renting out their property to holidaymakers (CAE 55201 and 55204).  Continue reading