Property Licences & Compliance
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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