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In the past six months, almost 2,000 “AL” enrolments have been wound up. Many owners have stopped letting but failed to cancel their registrations due to capital gains tax liabilities. In the first quarter of 2019, new “AL” sign-ups fell nationally by 40% and by 60% in Lisbon. These numbers are likely to be understated. In total, the capital currently counts with 18,000 Local Lodging Establishments. Nationwide, there are approximately 83,000. 2020 could prove to be a year of mass exodus.
Info from the NALLE Board:
“With the introduction of Decree Law 128/2014 of 29 August, questions have been raised regarding the potential assessment of Capital Gains when Owners use their own immovable property in the operation of a Local Lodging business. Local Lodging is a commercial enterprise and is taxed under Category B. Immovable property held in a private name that is used for business purposes by the owner may be subject to Capital Gains under certain circumstances ….”
The full text is available to our members.
There is information circulating that owners running Local Lodging businesses could face a Capital Gains Tax liability when selling the property or closing the business.
This information has not been confirmed!
Several institutions, including NALLE and the Finance Authorities, are working on the issue in order to answer this question in a satisfactory manner.
If you have heard of this rumour: don’t get spooked by it!
Keep an eye on our website, we shall publish an information about the issue as soon as it becomes available!