Home » Posts tagged 'budget'
Tag Archives: budget
The ink is barely dry on changes to the Local Lodging regime and the ruling Socialist Party is moving forward with proposed amendments in the next year’s State Budget. According to the contemplated update, Local Lodging units should have a minimum coverage of €75,000 a year per claim. The recently approved legislation is vague concerning the amount of liability insurance required.
A new study by HomeAway reveals why Portuguese nationals prefer using Local Lodging for their vacations. For 79.5% of the respondents, choosing an “AL” accommodation is based on the possibility to prepare meals, thus making significant savings in the overall holiday budget. 70.2% of respondents prefer the scheduling flexibility and the ability to plan their vacation days without rigid time restrictions. In turn, 65% indicate that they can enjoy more space for leisure activities. 51.5% of holidaymakers appreciate the privacy and tranquility (as compared to 37.2% in hotels).
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.
Under the new Budget rules, Tax and Customs Authority (AT) officials alert that, as of January 2015, only invoices that include an individual’s tax number (NIB) will be eligible for tax deductions on personal income tax expenses.
This applies also to pharmacy receipts.
Tax payers can claim up to 1000€ in medical expenses (doctors’ visits, lab, glasses, pharmacy bills), and receive a tax credit of 15%. Keep your tax number at hand!