Short Term Rental Operation in Portugal | GCS

In this article, Short-Term Rental Portugal, we’ll cover the following: 

• How to register
• Information and documents to be shared with the authorities
• Duration for short term rentals
• Touristic enterprises
• Other detail
  • Requirements to be considered as a local accommodation
  • Taxation on your local accommodation activity
• Some locations to consider for short term rental Portugal
• Global Citizen Solutions: How we can help you
• Short-term rental Portugal FAQs

 

How to register

In this part of our Short Term Rental Portugal article, we’ll run over how to register for a new license, add an existing license, or claim an exemption. 

The following process applies: 

1. Go to “your listings” on airbnb.com
2. Click on your listing in Portugal
3. Click on registration at the top of the page
4. Follow the instructions to register
5. Click on the “submit” button

You will need to repeat the same process for all of your listings in Portugal, if applicable. 

Already registered? Then you’ll need to complete the five steps above to add your existing permit number to your listing. It will not be necessary to renew your registration unless there is a change in your listing or registration details. If there is a change, then you will have to notify the authorities in Portugal within a time period of ten days. Make sure you update your property listing on Airbnb accordingly.

The process to register is free of charge. 

 

Information and documents to be shared with the authorities

You will be required to show the following documents or information to the Portuguese authorities.

• The name, address, and NIF (Portuguese tax number) of the owner or person who will carry out the activity
• The start date of the activity
• The capacity of the property, such as the number of beds, rooms, and users
• A valid authorization of the use of the property
• Details of the emergency contact
• The name adopted by the establishment and its address
• Passport or ID, and company documents
• The land registry document
• A signed declaration that states that the property is suitable as being an AL establishment
• Lease agreement, deeds, or other documents that entitle you to rent your property 
• Declaration of Tax Activity (Declaração de Início de Atividade) CAE 55201 or 552014

 

Duration for short-term rental Portugal

There is no minimum or maximum number of nights for the property to be an AL establishment.

The touristic enterprises have a specific legal regime that is called the Regime Jurídico da Instalação, Exploração e Funcionamento dos Empreendimentos Turísticos and is under Decree-Law no.39/2008, amended on 7 March 2008. 

This applies to establishments that are aimed at providing accommodation services in exchange for remuneration. The establishments will be required to have an appropriate set of facilities, equipment, and complimentary services for them to be operational, as Airbnb states on its website. 

 

Other details

In this section of our Short Term Rental Portugal article, we’ll provide you with some important information that you should be aware of, including the requirements to be considered as a local accommodation provider in Portugal and crucial information on taxation of your short rental activity in the country. 

Requirements to be considered as a local accommodation

There are some qualifications that properties will have to meet to be regarded as a local accommodation unit. Below we have listed them, including the recent amendments to the law. 

• In your properties, the total number of bedrooms must not exceed nice. In addition, unless the property is a hostel, it cannot accommodate more than 30 people
• Your properties must be in perfect condition and the installation works and equipment must function to a good level
• The properties will need to be connected to the public water supply and public sewage network
• Tap water needs to be included
• The properties need to contain one window or balcony, at the very least, that is connected to the exterior in order to meet the appropriate ventilation conditions
• The properties need to include furniture, equipment, and appropriate home utensils
• The sanitary facilities in the property are private or common to several rooms or dormitories
• In apartments, short term rental house Portugal, and rooms, there needs to be at least one toilet for every four rooms and cumulatively for a maximum of ten users. 
• The sanitary facilities, if common to several rooms, and which are not separated by gender, must have autonomous doors with security systems in place to ensure privacy.
• In accommodation establishments, there must be at least one toilet, a washbasin, and a shower, for every six users who are sharing common sanitary facilities. 
• Houses and apartments that have more than ten users will need to comply with the fire risk safety rules, under the provisions of Decree-Law No. 220/2009, of 12 November 2008, in its current wording, and the technical regulation of Ordinance No. 1532/2008, of 29 December 2009, in addition to the exceptions provided therein. 
• Local accommodation establishments need to provide a check in reception service (a check in and check out process) and information for users, which can be carried out in person, by telephone, or electronically.
• Local accommodation establishments will need to provide a means of communication with the reception service, including indicating the national emergency number and the contact details for the operator. This includes hostels. 
• The operating entities of local accommodation establishments will need to communicate the accommodation of foreigners. This is under the terms of Law no. 23/2007, of 4 July 2007, and Ordinance No. 287/2007 of 16 March 2007, in the current wording, in which the legal regime of entry, stay, departure, and removal of foreign nationals is approved. 
• Local accommodation operators have to cooperate with national authorities in collating and providing data related to the number of users, overnight stays, and others that are required for statistical purposes.

You can find more details on the Diário da República Eletrónico (DRE) website.

 

Taxation on your local accommodation activity

In this section of our Short-Term Rental Portugal article, we’ll delve into everything that you’ll need to know about taxes related to renting out your property in the short-term that you’ll have to take into account. 

Income Tax

First things first, you will need to register your accommodation service activity with the Portuguese Tax Administration. All profit that is gained from this activity will be taxed by the B category, such as business profit. 

There are two tax regimes that are available for this: 

1. Simplified Regime (Regime Simplificado)

If you gain a profit amount that is less than €200,000 from your local accommodation activity, then you can choose the simplified regime or the organized accounts regime. If you choose the simplified regime, then the profit to be taxed is calculated with a 0.35 coefficient. This is applied to hotel services and other similar activities. The other 65 will be considered as costs of the activity and therefore will not be taxed. 

2. Organized accounts

If you gain a profit amount that is more than  €200,000 a year from your local accommodation activity, then you will be directly included in the organized accounts regime. Following this, the rules of the corporation tax (IRC) will determine your taxable profit according to ith the applicable adaptations. 

Corporation Tax

If a company carries out the local accommodation activity, then the company will be subject to the standard corporation tax rules. Eg. a fixed rate of 21% applies to the profit that is earned. 

VAT

The local accommodation activity is deemed to be a service provider. Therefore, is it subject to a reduced VAT. The rate of this is 6%. The VAT rate applies to accommodation and the price of breakfast. However, if you choose the simplified regime and if your annual income clocks in at less than €10,000, then you can claim to be exempt from VAT. 

If you are not exempt from VAT then you will be required to pay this tax through a periodic return of VAT. This can be monthly or quarterly depending on whether the activity turnover is superior or inferior to €650,000. The periodic return is conducted on the “Portal das Finanças” (Finances Institution of Portugal).

Regarding touristic animation agents and travel agents

As a touristic animation agent or travel agent, you could be subject to registry obligations. You can locate all the necessary information, including the application steps on the website of Turismo de Portugal under the section about the National Registry of Touristic Animation Agents (RNAAT).  When you describe your listing, you will need to comply with the RNAAT.

Getting assistance with the process

The process of short-term rental in Portugal can be difficult, particularly if you are unfamiliar with the process and if you do not speak Portuguese. You will need to know about Portugal short-term rental law. When considering the many different details that you will need to be up to speed with, it may be a better option to work with a lawyer or a management company. This will save you time and ensure that the process is as hassle-free as possible. 

Global Citizen Solutions: How we can help you

Global Citizen Solutions provides specialist advice for immigration and investment in Portugal. If you are looking to invest or acquire residency in Portugal, our team of in-country specialists can help you. Every query is answered within a day, and the initial 15-minute consultation is free.

If you are looking to buy property in the country, you can also get in touch with our real estate division, Goldcrest. As a local buyers agent based in Lisbon, Goldcrest will be able to guide you on the perfect property or investment tailored towards your specific needs. 

The following articles may be of interest to you:

• Cost of living in Portugal vs. USA
• Expats in Portugal: The Ultimate Guide
• The Cost of Living in Portugal

Frequently asked questions about short term rental Portugal: 

How much is a vacation rental in Portugal?

The cost of a vacation rental in Portugal will largely depend on the location and what kind of property you are looking to rent. You will be able to find properties ranging starting from around 60 euros a night in Lisbon, going up to around 350 euros. Short term rental apartments Lisbon Portugal may be more affordable if you are planning on staying for a month or so, as monthly rentals in Portugal are normally cheaper.

Elsewhere in the country, you will find much more affordable options. Also, bear in mind, that if you book in advance, you’ll be able to find cheaper vacation rentals. Check out reviews from previous tenants to get an overview of the property (e.g. is wifi included? Am I close to shops, is it equipped for digital nomads, etc.). If you are looking to stay long term in Portugal, then it is obviously better to seek long term accommodation. 

Why should I choose a vacation rental in Portugal?

If you choose vacation rentals in Portugal, you’ll find many different property types and top locations to enjoy. Whether you are searching for a vacation rental with ocean views, in the depths of the countryside, a luxurious modern apartment, you’ll be able to find several options. Also, compared to London, Paris, and other western European cities, you will find that Portugal is quite affordable, although prices in Lisbon are increasing. 

The Portugal area has many different regions. Whether you are looking for a countryside villa or modern townhouse you’ll be surprised by the variety of landscapes that the Portugal area encompasses.