New Regulations for renting your property for short-term lettings in Portugal
04/02/2009
Recently, the new Portuguese Bylaw No. 517/2008 and Decree 39/2008 have regulated terms on how Property Owners within Portugal can rent their properties on short-term lettings.
In particular, those properties including villas and apartments classified under "Local Accommodation" which do not fulfil the necessary requirements but are considered as a tourist development and whose owners provide temporary accommodation in return for payment.
Under this new regulation, owners must now register their properties within the Town Hall (Câmara Municipal) as a Local Accommodation Establishment “Estabelecimento de Alojamento Local ".
Therefore, all villas plus apartments classified as “Alojamento Local”, must now meet the legal standards for safety and hygiene required in order for a registered and licensed villa/apartment to be advertised as "local accommodation" ("Alojamento Local" or "AL") on short-term rentals or seasonal rentals by owners, travel agencies or tourist offices.
The new procedures to obtain this licence are now simplified; however, do require to be carried out by certified and qualified technicians.
Fully aware of how important it is for most owners to obtain such a certificate, the qualified technicians at Terracottage are able to offer a complete service that meets all requirements.
Property owners, who do not comply with the new regulations, could incur severe penalties and we, at Terracottage, anticipate that from henceforth, inspections may be more demanding with regard to seasonal rentals.
Property owners, who have obtained an “AL” License, are now permitted to invoice their clients VAT at 5% instead of 20%.
Please do not hesitate to contact us for further information.