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Monthly Archives: January 2016

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Hiring a Cleaner

Cleaning at regular intervals is an essential service in Local Lodging offerings. There are two methods of hiring cleaners: as an independent sole trader or as a domestic worker.

Sole Trader

The first is by far the more common of the two.  The Owner agrees to pay “X” Euros per hour for “Y” hours per day over an interval of “Z” (daily, weekly or monthly).  Upon completion of the interval, the Owner pays the Sole Trader and the Sole Trader issues an electronic green receipt.  The Sole Trader is solely responsible for his/her own Social Security contributions.

The same method applies when using a cleaning company.

Domestic Worker

The second method is as a Domestic Worker.  Here there are three contractual options:

  • Hourly: a minimum of 30 hours per month.  Retentions from pay to the Domestic Worker will be at 50% on an annual basis;
  • Monthly: Minimum of 80 hours/month where the worker has full normal rights and privileges;
  • Full time: where the minimum wage is €419.22 X 14 per annum.

For Social Security contributions, the basic hourly wage is €2.42 per hour. Total SS contributions are 28.6%; 19.9% is paid by the employer and 9.6% by the Domestic Worker.  The full SS monthly payment is €79.23.

In a new hiring situation, the Sole Trader method is usually simpler and more flexible for all. If the arrangement proves long-term, the position can evolve into a on-going Domestic Worker contract.

 

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IRS Expenses in 2016

Many taxpayers were found to be unaware of the current procedure to adopt for recording tax credits in the supermarkets and several service areas in 2015. Therefore, the government approved a transitory measure allowing taxpayers to declare health expenses, education and training, and charges for housing in their 2015 tax declaration. In the future, these credits will only be accumulated by asking for an invoice with tax number. The shops then send the information to the AT which automatically attributes accumulating credits (up to maximum levels) to the individual taxpayers

The law also defines how to make deductions on spending for health and education outside the European Union or the EEA. Taxpayers must be able to document all expenses reported in this fashion.

Bank Bailouts in Portugal

Since 2008, the Portuguese government has injected more than €11 billion into banks on the brink of collapse. All in all, the price tag come to €1,122 to each Portuguese citizen.

 

EU bank transfers to use IBAN in 2016

As of 01 February 2016, European bank transfers will replace the Bank Account Identification Number, “NIB”, with the “IBAN” upon the completion of the migration to the new Single Area Payments in Euros System, “SEPA”.

“IMI” Council Tax Rates for 2016

Council Tax Rates (IMI) in 2016 will remain the same in 259 of 308 municipalities, 84% of the total. 46 towns and cities (15%) will lower tax rate and only 1% will increase the levy. 136 townships (44%) will charge the minimum charge of 0.3%

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