When registering the business with the Tax Office, it may be useful to ask a surveyor or real estate to give a market value for the property and to note this in Annex B section 8 of the following year’s tax declaration. This value will stay in the books until the property is sold one day. In accordance with the years used for private use and for holiday rental, a different percentage applies to the usage for the business, often at a more favorable CGT rate.
In the first 2 months of 2016, the number of visitors to Portugal increased by 11.4% when compared to the beginning of last year. Over the same period, income from tourism has also increased by over €1,175,000,000.
As an accommodation service business, Local Lodging is subject to VAT at the reduced rate of 6% (5% in Madeira and the Azores). Value Added Tax is applied to the price of lodging when annual income surpasses €10,000 and is reported quarterly to the Portuguese Tax Authority. In contrast, income from long-term lets (<30 days) is exempt from VAT.
The council of São Brás de Alportel has recently launched a promotional page on its website for Local Lodging establishments located in the township. Highlighted is an interactive map that helps visitors to locate offerings. Initially, there are 35 listings.