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Local Lodging: tax revenues double

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.

Local Lodging licenses double under new rules

Between May and July of this year, there were 8650 new official Local Lodging registrations  (“AL”), representing twice the amount over the same period of 2016. The phenomenon is explained not by a large-scale entry of offerings into the holiday letting market, but rather by the legalisation of existing units.

Tourist lets only with licensed properties

As of 01 July, online letting platforms such as AirBnB and Booking can only list properties duly  licensed in the National Tourist Registry. The obligation to enroll is part of a simplex initiative known as “Simpler Tourist Licenses”. With the new regulation, the Government intends to avoid unfair competition between property owners and tour operators as well as strengthen compliance.

Fines for unauthorised Local Lodging

NALLE logo-red 30%The penalty for letting furnished accommodations to tourists without a license (registration with your local Council) is as follows: for Individuals: €2,500 to €3,740.98 / for Companies: €25,000 to €44,891.22 The same fines also apply to the absence of an Energy Efficiency Certificate that is mandatory when conducting property related activities.

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