General information about local accommodation
To run a local accommodation (AL) business in Portugal, it is essential to know the mandatory legal and tax requirements. Here are the main aspects to consider:
1. Accommodation Types and Capacity Limits
- Modalities: Houses, apartments, rooms or accommodation establishments.
- Limits: Maximum of 9 rooms and 30 guests at the same time. The number of guests can be increased by adding 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 fractions.
2. Suspension of New Registrations
- New AL registrations are suspended for apartments and accommodation establishments in certain urban areas, except in the interior of the country and in the autonomous regions.
- Registrations issued up to October 7, 2023 will be reassessed in 2030 and renewed every 5 years.
3. Registration Process
- Steps : Open/change activity at the Tax Office, gather documents (authorization of use, property register, etc.), and submit prior communication at the Entrepreneur's Desk.
- Inspection : After registration, the city council carries out 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 based on category B (business income) or F (property income). Category B may be advantageous with the simplified regime, while category F may apply a fixed rate of 28%.
- VAT : The rate of 6% applies to invoicing, with the option of 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 Stay of Foreigners : 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 arising from the intensive use of common areas and have the power to cancel licenses issued without approval.
7. Good Practices
- Presentation : Realistic photos and descriptions.
- Organization and Cleanliness : Organized and properly sanitized spaces.
- Quick Responses and Personalization : Customer service and personalized touches, such as local tour suggestions.
Conclusion
Complying with these legal and tax requirements is crucial to avoid fines and ensure the success of your business. Evaluate all options before investing, ensuring efficient and profitable management.