Renting a property for use as Airbnb or local accommodation in Portugal involves several legal implications that property owners must consider. Here are the main points:
Licensing and Registration
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Mandatory Registration:
Before starting operations, it is mandatory to register the property as local accommodation with the corresponding municipal council. This registration is essential to obtain a registration number, which is necessary to advertise the property on platforms such as Airbnb. However, the issuance of new Local Accommodation registrations is, as a rule, suspended nationwide since the entry into force of the More Housing Law (2023).
Rules and Regulations
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Suspension of New Registrations:
The More Housing Law (L. n.Âș 56/2023) established the national suspension of the issuance of new Local Accommodation (AL) registrations in areas of urban pressure and in most of the territory (except for low-density territories and hostels). This suspension is the current rule, and not just a local limitation.
- Expiry of Existing Registrations (Omission): Existing AL registrations automatically expired if they had not been renewed and the maintenance of the activity proven until December 2024, according to 2023 legislation.
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Power of Revocation by Condominium:
The law no longer only prohibits new registrations in residential buildings. Currently, the condominium, through a decision of two-thirds of the buildingâs permillage, has the power to revoke an existing AL license.
Tax Implications
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Taxation:
Income obtained through local accommodation is subject to taxation. Property owners must declare this income and may be subject to VAT, depending on the volume of business.
Important: The More Housing Law increased the taxation rates in IRS (simplified regime) for AL income, especially for properties located in areas of urban pressure.
Compliance with Standards
- Safety and Health: Properties used as local accommodation must comply with specific safety and health standards, including the installation of safety equipment such as fire extinguishers and emergency signage.
Liability and Insurance
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Civil Liability Insurance:
It is advisable that property owners have civil liability insurance to cover possible damages or accidents that may occur during guestsâ stays.
Cooperation with Authorities
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Data Sharing:
With the new European Union rules, there is an emphasis on data sharing between platforms such as Airbnb and local authorities to ensure compliance with regulations.
In summary, Local Accommodation legislation in Portugal underwent profound changes in 2023 (More Housing Law), imposing a suspension on the issuance of new licenses and establishing expiry rules for existing registrations and greater revocation power for condominiums. It is essential that property owners consult the rules in force in their location, ensuring that all the latest legal and tax obligations are met.