Obtaining Holiday Property Rental Licences and Compliance in Portugal

Smaller holiday rental properties such as villas, apartments, rooms and guest houses are classed as “Local Lodging” or “Alojamento Local”, under the new legislation governing Tourist Rental Properties. The law has undergone some changes with the publication of the Law nº. 62 from 22nd August 2018.

Property owners are required to register as a sole trader and apply for a Rental Licence, which are also known as “AL” licence (Alojamento Local). The rental or “AL” licence is obtained by Portutax from the local town hall. Whilst the fee is a one-off cost, non-compliance may result in heavy fines, as ever-increasing inspections are being carried out by the local authorities.

Benefits of using Portutax for this include:

  • Obtaining the AL licence at the relevant local town hall
  • Register the landlord as a sole trader at the tax department
  • Prepare receipts and documentation in order to assist the landlord in complying
  • Notifying the Immigration and Border Service (“SEF”) of all information
  • Submission of tax return to the tax department.

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The key changes introduced by Law nº. 62 from 22nd August 2018 regarding holiday rental properties in Portugal include mandatory registration and licensing of properties for short-term rentals, as well as the requirement for property owners to have a fiscal representative in Portugal. These changes aim to regulate the holiday rental market and ensure compliance with tax and legal obligations. It is important for property owners to stay informed about these changes and work with trusted fiscal representatives to ensure compliance with the new laws.

Smaller holiday rental properties are classified as "local lodging establishments" under the new legislation. This classification applies to properties with less than ten rooms and a maximum capacity of 20 guests. Owners of these properties are required to register with the local authorities and comply with specific regulations to operate legally.

Obtaining an AL licence is crucial for property owners in Portugal as it allows them to legally rent out their properties for short-term stays. It ensures compliance with local regulations and offers a sense of security for both the owner and the guests. Additionally, having an AL licence can maximize the property's potential for rental income.

Portutax acts as a trusted fiscal representative for property owners, assisting them in obtaining the AL (Alojamento Local) licence. This service offers the benefit of expert guidance and support throughout the application process, ensuring compliance with all legal requirements. Additionally, Portutax helps property owners navigate tax obligations and financial aspects related to their rental property.

Portutax assists landlords in complying with regulations by registering them as a sole trader with the tax department by providing personalized guidance and support throughout the entire process. Our team will ensure that all necessary paperwork and documentation is filed correctly and on time, helping landlords avoid potential penalties or fines for non-compliance. We can also provide ongoing tax advice and assistance to help landlords stay compliant with any changes in regulations.

Portutax ensures that all necessary receipts and documentation are accurately prepared and organized for landlords in order to ensure compliance with regulations. This includes thorough record-keeping and documentation of rental income, expenses, and relevant tax forms. Our experienced team works diligently to provide landlords with the support they need to meet all fiscal requirements.

Portutax ensures that landlords are compliant by notifying the Immigration and Border Service ("SEF") of all necessary information through a thorough and meticulous process. We work closely with SEF to ensure that all required information is accurately and promptly submitted. This helps landlords to remain in good standing with the authorities and avoid any potential penalties or fines.

Portutax handles the entire process of submitting tax returns to the tax department on behalf of property owners. Our trusted fiscal representatives ensure that all necessary documentation is completed accurately and submitted on time. This allows property owners to have peace of mind knowing that their tax obligations are being taken care of professionally.

Property owners in Portugal may face fines, legal disputes, or even the forced closure of their property for non-compliance. Portutax can help mitigate these risks by providing expert guidance on property regulations and ensuring that owners are in full compliance with all fiscal requirements to avoid any potential consequences.

Portutax ensures compliance with holiday property rental regulations by staying up-to-date with all local laws and regulations, providing guidance to property owners, and assisting with any inspections or audits conducted by local authorities. Our team works diligently to ensure that all properties meet the necessary requirements to operate legally and safely within the rental market in Portugal.