Local Accommodation

Acquiring a Local Accommodation kit ensures compliance with legislation, offers all essential items in one package, and facilitates installation with ready-to-use materials.

What is Legally Required for a Short-Term Rental?

In accordance with paragraph 2 of Article 13 of Decree-Law no. 128/2014, of August 29, local accommodation with a capacity for fewer than 10 guests must comply with the following safety requirements:

a) Provide a fire extinguisher and a fire blanket easily accessible to users;
b) Have a first-aid kit accessible to guests;
c) Display the national emergency number (112) in a visible location.

Furthermore, except for AL registrations under the "Villa" modality, all local accommodation establishments must affix an approved sign identifying the establishment as Local Accommodation at the main entrance.

The Local Accommodation activity was initially regulated by Decree-Law no. 128/2014, which established the main legal obligations for this type of accommodation. This decree defined the need for equipment such as fire extinguishers, fire blankets, first-aid kits, and appropriate signage, requirements that are still valid.

In 2018, Law no. 62/2018 introduced some changes to this regime, adjusting and clarifying certain legal aspects.

More recently, Ordinance no. 262/2020 brought additional changes, especially regarding the mandatory nature and characteristics of Local Accommodation identification signs.

In the Azores, Local Accommodation establishments also follow a specific regional ordinance, which requires the placement of the identification sign in all ALs.

It is always advisable to check the most updated legislation, as changes or discrepancies between legal publications and available information may occur.

Decree-Law no. 128/2014

The Local Accommodation Kits vary according to the size and capacity of the accommodation, adjusting to ensure compliance with legal requirements.

  1. T0/T1 Accommodation Kit: This kit contains the minimum required by law for small accommodations, such as studios and one-bedroom apartments. It includes a 2 kg ABC dry powder extinguisher, a fire blanket, and a basic first aid kit.
  2. T2/T3 Accommodation Kit: For larger accommodations, such as two or three-bedroom apartments, the 2 kg extinguisher is replaced by a 6 kg ABC dry powder extinguisher, providing greater safety given the larger area.
  3. T4 or Higher Accommodation Kit: For accommodations with four or more bedrooms, in addition to the 6 kg extinguisher, the first aid kit is expanded, being replaced by a first aid box suitable for 6 or more people, ensuring sufficient resources for a larger number of guests.

These adjustments to the kits ensure that safety and emergency resources are adequate for the size and occupancy of different types of accommodation.

See Also!

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To manage a local accommodation (AL) business in Portugal, it is essential to be aware of the mandatory legal and fiscal requirements. Here are the main aspects to consider:

1. Types of Accommodation and Capacity Limits

  • Modalities: Houses, apartments, rooms, or lodging establishments.
  • Limits: Maximum of 9 rooms and 30 simultaneous guests. The number of guests can be increased with the inclusion of extra beds for children up to 12 years old.
  • Restriction: The same owner cannot operate more than 9 apartments in a building if this represents more than 75% of the units.

2. Suspension of New Registrations

  • New AL registrations are suspended for apartments and lodging establishments in certain urban areas, except in the interior of the country and in autonomous regions.
  • Registrations issued until October 7, 2023, will be reevaluated in 2030 and renewed every 5 years.

3. Registration Process

  • Steps: Open/amend activity with the Tax Authority, gather documents (habitation license, property tax register, etc.), and submit the prior communication to the Balcão do Empreendedor.
  • Inspection: After registration, the municipal council conducts an inspection to confirm compliance with requirements.

4. Tax Decisions

  • CAE: Choose between codes 55201 (furnished accommodation for tourists) or 55204 (other short-term accommodation).
  • IRS: Taxation can be under category B (business income) or F (rental income). Category B can be advantageous with the simplified regime, while category F may apply a flat rate of 28%.
  • VAT: A 6% rate applies to invoicing, with an option for the exemption regime if the turnover is less than 12,500 euros.

5. Mandatory Conditions

  • Insurance: Fire and damage insurance to cover risks.
  • Safety: Extinguishers, fire blanket, and first aid.
  • Communication of Foreigners' Stays: Notification to SEF within 3 days.
  • Identification Plate: Mandatory, except for houses.

6. Relationship with the Condominium

  • Condominiums may require an additional contribution to cover expenses resulting from the intensive use of common areas and have the power to cancel licenses issued without approval.

7. Best Practices

  • Presentation: Realistic photos and descriptions.
  • Organization and Cleanliness: Organized and properly sanitized spaces.
  • Quick Responses and Personalization: Customer attention and personalized touches, such as suggestions for local visits.

Conclusion

Complying with these legal and tax requirements is crucial to avoid fines and ensure business success. Evaluate all options before investing, guaranteeing efficient and profitable management.