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Tourist Tax in Porto off to a strong start

Porto’s Municipal Tourist Tax only began to be applied in April 2018, but the results from the first three months of collection point to annual revenues 50% above initial estimates. By the end of the year, the municipality currently expects to raise over €9,000,000.

Two-year moratorium on new AL changes

Several new regulations mandated in the latest Local Lodging review permit a two-year abeyance in enforcement to existing units where an “AL” activity has already been approved. This extended implementation period applies in the following situations:

  • Condominium charges can increase by up to 30% when justified by collective encroachment;
  • Multi-risk insurance and liability coverage is required for all Local Lodging operators;
  • The entrance to a Local Lodging unit must have an “AL” identification plaque;
  • Expenses for construction work carried out in common areas to adapt or license a property under “AL” are to be borne by the owner of the Local Lodging unit.

Other alterations to legal requirements in the most recent legislation come into effect in early October (two months following ratification).

European Commission warns: Airbnb not complying with the law

The European authorities require Airbnb to make changes to its operations. The company has until the end of August to present solutions. Greater transparency regarding costs and the conditions for cancellation of the accommodation by the owner are among the requirements.

Upcoming changes in Local Lodging legislation

Recent legislative reforms have created tighter rules for operators of Local Lodging establishments. Under the new regulations, Councils will have a say in setting occupancy quotas within their municipalities. Condominiums can launch complaints regarding “AL” based disturbances and misuse in their buildings. (more…)

Yescapa, the motorhome “Airbnb”, arrives in Portugal

Yescapa, an online platform for renting motorhomes, joins more traditional holiday accommodation options. Dubbed the “Airbnb of motorhomes”, Yescapa offers an “on the road again” vacation experience that is different from hotels, local lodging, camping or hostels. The startup began six years ago in France and is now expanding to Portugal at yescapa.pt

Local quotas proposed for short-term holiday lets

Upcoming legislation, designed to regulate Local Lodging, is likely to include measures intended to counteract the “Disneyfication” of historic city centres. According to the current Socialist Party proposals, the imposition of quotas on a selective basis is “an admissible model” that should give a “relevant role to municipalities”. Since 2012, “AL” registrations have skyrocketed nationally from 7,533 to 58,252, a more than 7-fold jump. The increase in Lisbon during this period has been over 400%, primarily in the historic neighbourhoods.

Hostels will no longer be considered Local Lodging

The Government recommends that hostels no longer be classified as Local Lodging (“AL”). The new legislation proposes that this type of offering be registered in the category of “Tourist Development” (“empreendimento turístico”), requiring a more formal licensing process. When the 2008 legislative reform originally introduced this accommodation concept, hostels fell into the loosely defined “Local Lodging” catchall category, rather than within the more tightly regulated “Tourist Development” grouping.

viaCTT electronic post box

The “AT” (Tax Office) wants to assure that all entrepreneurs receive their correspondence in a secure and unquestionable manner. To this end. all Sole Traders registered for VAT are now obliged to have an electronic post box with www.viaCTT.pt. The viaCTT account must be activated within 30 days after VAT registration. The rule applies to sole traders once they have reached an income of over than 10.000€ in the preceding year. Fines for non-compliance go from €50 to €250.

 

Government plans to finalise 2019 Budget proposals in July

Diverse and sometimes contradictory recommendations are currently under discussion to modify underlying rules governing Local Lodging. In last year’s budget, numerous changes came into effect regarding the taxation of Local Lodging income. In IRC, “AL” income under the Corporate Simplified Regime lost its reduced 0.04 coefficient, rising to 0.35. In IRS, the changes moved in the same direction: under the Simplified Regime for Independent workers, the 0.35 coefficient also applies. Apartments and villas let under in Local Lodging registrations were excluded from the 0.15 coefficient still available to room lets, hostels and holiday offerings registered under the  “Tourist Development” classification.

“Local Lodging serves to rehabilitate, not to expel”

The Secretary of State for Tourism, Ana Mendes Godinho, announced in a parliament hearing on the subject: “I do not agree that many people have been expelled by Local Lodging. Instead, it has served to rehabilitate our inner cities. We have to manage the evolution of Local Lodging in order to ensure that the cities retain their authenticity. This is not only a concern of tourism but for everyone, including guaranteeing the right to housing.”

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