Rentals and Letting

Insights into what is involved in buying, selling & living in Portugal

Rental issues again

Taxation: business vs rental income In this series, we examine implementation issues surrounding the new Holiday Let Licensing legislation Taxation: business vs rental income Lawyers and contracts “Simplex and property problems Rental agent v property manager As you have previously read (short term letting in 2008 – new legislation), how you set up your contracts defines the nature of your activity and how your income will be treated for tax purposes. Read more →

Short term rentals

Short term rentals. Alojamento Local. In the past I have written several articles about the problems we have encountered in recent years with letting private properties to tourists on a daily or weekly base (short rentals). During the past years quite a few agencies and property owners have been caught by the ASAE (the authority in charge with inspections) and agents and property owners received heavy fines as their properties did not have the correct license. Read more →

New Tourist Rental License

Tourist rental licensing process simplified With more than 330,000 bed spaces rented out illegally in the Algarve, the government has simplified the licensing process in the hope that more owners apply for the tourist rental licence and declare rental income. In the meantime, ASAE will step up inspections of illegally rented properties. Read more →

Holiday lets and Rental Income

Portuguese property is an attractive investment because it can bring income as well as capital growth, making it potentially both a secure and profitable investment. However, with making money comes fiscal obligations. Buy-to-let owners in Portugal are faced with new commitments and compliance requirements when sorting out their tax obligations on holiday property rentals. Read more →

Holiday let licensing

Ways of keeping your habitation licence This spring, for the third consecutive year, inspectors from Autoridade de Segurança Alimentar e Económica (ASAE) have fined agents and owners for holiday let related activities. The licensing issue continues to generate controversy and confusion, among owners wanting to rent their properties to holidaymakers and agents wishing to serve this growing need. Read more →

Short-term holiday letting

Two sets of legislation co-exist to regulate different types of rental activity. On the one hand, holiday lets in Empreendimentos turísticos (tourist developments) such as hotels, holiday complexes and camping facilities are defined and regulated under Decree Law nº 167/97. This has been altered and republished under Decree Law nº55/2002, which decentralises many responsibilities from the central tourism bureau (Direcção Geral de Turismo) to local town councils (câmaras). Read more →

April 2007

Government inspections launched a mega operation last week targeting holiday villas and rental accommodation across the Algarve. A total of 147 fines were issued for various infractions, but primarily to property owners not holding the requisite rental licence. Five teams from the Autoridade de Segurança Alimentar e Económica (ASAE) made a total of 64 inspections over April 10, 11, and 12, targeting private owners and middlemen such as villa rental agencies and real estate firms. Read more →

Villa licensing and no progress

The problems affecting the licensing of properties for rent deepened this week. A villa owner in Quinta do Lago made public some documents that show it is impossible to obtain the necessary licence to rent a private villa to holidaymakers. After submitting plans, drawings and all the necessary application forms to Loulé Câmara to alter the property’s usage classification from habitation purposes to tourism so it could legally be rented to tourists, the owner received a refusal letter in December from the Direcção-Geral de Turismo (DGT), the entity with the final say on the matter. Read more →

Rentals license - the total picture

Background – raids on rentals This is the first in a seven part series on licensing requirements for holidaylets. Background – raids on rentals Tourist lodgings – A casa turística Licensing requirements – presenting a plan The guest house – A hospedagem Renting – o arrendamento urbano Compliance – getting it right Conclusion – not so bad after all In the summer of 2005, Inspectors from the Inspecção-Geral das Actividades Económicas (IGAE) raided rental agencies in the Algarve, demanding to see letting permits. Read more →