In the first quarter of 2016, the French buyers surpassed the English and Chinese for the first time in the real estate purchases. This trend further consolidates the growth experienced in recent years. Overall, foreign investment represents 20% of property purchases in Portugal.
Recent Italian legislation has created a specific fiscal category called “income from non-professional economic sharing activity”, taxed at a flat rate of 10 percent up to €10,000 per year. Beyond this level, such earnings will be added to other sources of income taxed at marginal rates. This new economic category brings together 3 characteristics:
- Goods and services that are shared to generate value, such as rides or apartments, must be owned by the individual operator and not by a platform.
- Individual operators may not be employees of the company nor treated as such. For this reason the legislation states that the activity cannot be monitored by any type of software or device.
- Finally, rates cannot be imposed, but only suggested and ultimately left to the discretion of the operator offering the service.
The mayor of Porto, Rui Moreira, announced his intention to introduce a Tourist Tax in the city of Porto “to alleviate the tourist footprint in the city” and “to buy real estate that the municipality does not want used for tourism.”
The Lisbon Municipal Assembly rejected a motion to limit the number of Local lodging offerings in the country’s capital. Both supply and demand for Local Lodging have increased in recent years putting pressure on conventional rentals. At the same time, tourism receipts have grown dramatically.
The vice president of the Municipality of Lisbon, Duarte Cordeiro, urged the Government to take part in a national debate on Local Lodging, considering that: “there is still no certainty” what will be the most effective policies.