Below follows a quick summary of the measures for ALOJAMENTO LOCAL (AL, or short-term rentals) in mainland Portugal, approved by the Portuguese Parliament on July 19th 2023.
– suspension of new AL registrations in the Apartamento and Estabelecimento de Hospedagem categories when implemented in a horizontal property (condominium building), except in low density areas defined in the Annex of this ordinance: Portaria n.º 208/2017 de 13 de julho
– new AL registrations in condominium buildings require unanimous approval of the condominium.
– existing AL’s in condominium buildings can be closed with a 2/3rds majority vote
– existing AL registrations become temporary, and must be renewed every 5 years starting in 2030.
– if owners of properties wth an AL registration from before 31st December 2022 cancel the AL before the end of 2024, and put the property on the long-term rental market, they will be exempt from tax on such rentals (IRS in the case of individuals, IRC for companies) until the end of 2029.
– the new CEAL tax was approved at 15%, and applies only to autonomous residential units (not detached houses in the Moradia category or complete buildings). It also doesn’t apply to AL in the permanent residence of the owner, if not active for more than 120 days per year.
– The IMI is a fixed tax (set by the municipality) on the VPT value of the property, which you can find on the caderneta predial. One of the coefficients that determines the calculation of the VPT is the age (vetustez) of the property, which can go from 1 (for properties less than 2 years old) to 0.4 (more than 60 years old).
If the property is registered as AL (totally or partially, according to the new law, meaning that it is irrespective of just being one room or the whole property), then the vetustez coefficient is ALWAYS set to 1.
So, if you have a property that is more than 60 years old and you are renting a room via Alojamento local, your IMI could more than double.
The law has been vetoed by the President, and will be discussed again in Parliament on September 21st. It also has to be properly regulated, and the specific regulations can also be vetoed by the President. Furthermore, there have been threats of challenges to the law in national and European courts, but other political parties, and Associations belonging to the sector.
The regulatory document can not be sent to the Constitutional Court by the President, Marcelo Rebelo de Sousa, who will have only two options on the table: either approve or veto. If the regulation process goes through Parliament, the President of the Republic has 20 days to decide. If he decides to veto, the diploma is returned to Parliament where it can be amended.
If the regulatory decrees are produced by the Government, the decision period extends to 40 days, from the day the President receives the document. In this case, the President’s veto is definitive, that is, the Government will be forced to create another diploma.