Home » Posts tagged 'local lodging'
Tag Archives: local lodging
The Secretary of State for Tourism, Ana Mendes Godinho, announced that currently there are 59,000 Local Lodging registrations whereas of December 2015 the total was 28,000. She attributed the increase in large part to the legal obligation of digital platforms to display formal enrolments.
The number of beds offered in 2017 under Local Lodging in Portugal accounted for 56% of the total. Hotels made up the remaining 44%, according to an analysis by the Association of Hospitality of Portugal (AHP).
There are establishments designated as Local Lodging with standard residential housing permits but which are in reality “genuine hotels”. According to Urbanism Councilman Manuel Salgado, “giving residential housing and Local Lodging the same licensing status is detrimental to the city.” “Real Local Lodging is when the owner lives at home, sharing with holidaymakers. This form of tourist accommodation deserves protection”, stated the Lisbon alderman.
Like any tourist offering in Portugal, AL operators are required to pay a small royalty fee when supplying television, radio or an internet connection in their villa or apartment. However, for non-hotel establishments with less than ten rooms, the cost is just €12 per annum.
GEDIPE is the abbreviation for the national agency for authors’ rights. The Association also covers television distribution and audio transmissions. Registration is available at:
https://www.gedipe.org/website/gedipe/contact.html (choice of language at the bottom of the page).
AL Business owners may now find higher water bills in their mail boxes. Once local councils find out that a property is engaged in local lodging, they can reclassify the business, instead of “domestic” or “comercial” as “diversos”. In this case, the water costs more than for a private residential property. One consideration which may justify the increase is the fact that AL creates more rubbish and waste water, and as a result, the City Hall has to increase these basic services.
The State Budget has been passed and there are no major changes to the AL system: no limitations in number of days per year, and no tax increases are coming our way. The exception hits the entrepreneur who earns more than 27.300€ per year with Local Lodging (or as a Sole Trader in other areas); these businesses will have to prove 15% of their costs by presenting the respective invoices to arrive at the 65% exemption.
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.
Adjustments to current regulations for Local Lodging intended to regulate and respond to excessive volume are being prepared, according to the Secretary of State for Tourism. Integration of holiday letting into the formal economy has been the focus of successive changes to legislation in recent years. In July, new measures were introduced mandating that reservation platforms such as Airbnb or Booking.com identify official registrations of all available accommodations for travelers.
The Left Block, a partner in the governing coalition, proposes changes to current Local Lodging legislation. Under the soon-to-be recommended plan, holiday letting not exceeding 90 days per year should continue to benefit from the current tax regime. Year-round operation – without a limit of days and designated as “tourist accommodation” (Habitação turística) – must be equated with a hotel activity and assessed on the same basis.