Lisbon was the fifth most popular destination for European holidaymakers in 2017, registering a 17% jump when compared to the year before. Porto came in ninth place, 12% above 2016. Registering a 24% increase, London was the first choice for European tourists, followed by Barcelona, Mallorca and Paris.
Prices for Local Lodging (“AL”) rose in the historic centres of Lisbon and Oporto during the first half of 2016 according to the “Confidencial Imobiliário Index”. The average cost of “AL” accommodations increased by 4.6% in the historic districts of Lisbon and 0.3% in the centre of Porto.
Airbnb announced that, since 01 May 2016, it has already delivered almost five million euros to the City de Lisbon from the collection of levies on holidaymakers. To date in 2017, the amount collected has been €3,100,000. Airbnb is the only internet hosting platform to collect the Tourist Tax (one euro per night per person) on behalf of the Lisbon City Council.
Like any tourist offering in Portugal, AL operators are required to pay a small royalty fee when supplying television, radio or an internet connection in their villa or apartment. However, for non-hotel establishments with less than ten rooms, the cost is just €12 per annum.
GEDIPE is the abbreviation for the national agency for authors’ rights. The Association also covers television distribution and audio transmissions. Registration is available at:
https://www.gedipe.org/website/gedipe/contact.html (choice of language at the bottom of the page).
Vancouver, CA has passed new regulations banning homeowners from renting out certain kinds of property on short-term rental platforms like Airbnb as part of an attempt to cope with a shortage of long-term rentals. Owners may still rent out room individually or let their principle residence on a temporary basis when on holiday. The city will charge an annual licensing fee of C$49 (€32.80).
Following similar moves in London and Amsterdam, the holiday letting firm announced that hosts in four key Parisian neighbourhoods will only be able to rent out their entire homes for no more than 120 nights per year starting in 2018. The restrictions will bring Airbnb into line with current local regulations. Paris is the platform’s largest city based on listings.
AL Business owners may now find higher water bills in their mail boxes. Once local councils find out that a property is engaged in local lodging, they can reclassify the business, instead of “domestic” or “comercial” as “diversos”. In this case, the water costs more than for a private residential property. One consideration which may justify the increase is the fact that AL creates more rubbish and waste water, and as a result, the City Hall has to increase these basic services.
The State Budget has been passed and there are no major changes to the AL system: no limitations in number of days per year, and no tax increases are coming our way. The exception hits the entrepreneur who earns more than 27.300€ per year with Local Lodging (or as a Sole Trader in other areas); these businesses will have to prove 15% of their costs by presenting the respective invoices to arrive at the 65% exemption.
Tax receipts from Local Lodging (“AL”) grew from €69,000,000 to €123,000,000 between 2015 and 2017, as revealed by the Secretary of State for Tourism, Ana Mendes Godinho. “AL” license registrations also increased almost twofold from 28,000 to over 50,000 over the same period.