Alojamento Local: The New Rules

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

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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

Alojamento Local (AL) – Local Lodging

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