General information about Local Accommodation
To manage a local accommodation (AL) business in Portugal, it is essential to be aware of the mandatory legal and tax requirements. Here are the main aspects to consider:
1. Types of Accommodation and Capacity Limits
- Modalities: Houses, apartments, rooms, or guesthouses.
- Limits: A 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 guesthouses in certain urban areas, except in the interior of the country and autonomous regions.
- Registrations issued up to October 7, 2023, will be re-evaluated in 2030 and renewed every 5 years.
3. Registration Process
- Steps: Open/amend activity with the Tax Authorities, gather documents (occupancy permit, property tax booklet, etc.), and submit the prior communication to the Balcão do Empreendedor (Entrepreneur's Desk).
- Inspection: After registration, the municipal council conducts an inspection to confirm compliance with the requirements.
4. Tax Decisions
- CAE: Choose between codes 55201 (furnished accommodation for tourists) or 55204 (other short-stay 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 rate of 6% 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: Fire extinguishers, fire blanket, and first aid.
- Communication of Foreigners' Stay: 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 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 the success of the business. Evaluate all options before investing, ensuring efficient and profitable management.