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
On July 17th, as a result of the increasing number of privately owned short-term rental properties in Portugal, especially in the areas of Lisbon and Porto and the consequent impact on the quality of lifes of residents, the government has taken action and voted on alterations to the existing Alojamento Local legislation, which will become effective 60 days after promulgation. Continue reading
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
Although Decree Law no. 80/2017 from the 30th of June primarily refers to tourist accommodation establishments, it also introduces some changes and updates to the AL legislation. Continue reading
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
The new law for local lodging (Alojamento Local – AL) – Decree Law 128/2014, published on 29th of August 2014 – makes it mandatory for income received from short term property lettings to be declared to the tax department as business activity. This law will come into force next November 27th, adding substantial changes to the existing law from 2008.
If you let out your furnished property (Alojamento Mobilado para Turistas) on a short term basis (less than 30 days) or if it is advertised in any form as tourist accommodation, you will have to: Continue reading