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The water regulator advocates that establishments used for local housing should pay for water as “non-household” users. The increase is already in place in several councils. However, there are other centres, such as Lisbon, where the municipality has reimbursed the extra charge.
The City Halls may now request IMI re-evaluations for tax purposes. Until now, this procedure was only open to property owners. IMI is a municipal tax collected by the AT (Tax Authorities), based on 0.3% – .45% of the rateable value of real property.
The district of S. Cruz, Madeira, created an “Ecotaxa” on all tourist accommodation, including Local Lodging. The cost is 1 € per person per night (only for guests over the age of 18) and the maximum per person and stay is € 5.
The levy is supposed to be paid as of January 2016: The City Hall provides a form which is to be sent to them until the 10th of each following month. The Council then issues a payment order, and the property owners have 30 days to pay the amount.
The issue is being contested by the Chamber of Commerce and the big hotels in S. Cruz, they hold the levy to be unfair since it is not applicable to the whole island. The issue has gone to court.
The Government is tying up some loose ends: Home owners who rent out their property to tourists, have to prove to the City Hall until December 28, 2014 that they registered their activity with the Tax Office, otherwise they risk losing the Local Lodging License (Alojamento Local). This way, the state wants to make sure it receives taxes from all businesses. Talk to us today, we'll assist you and make sure things are ok!