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DECO warns that the new rules for Local Lodging require owners to have an insurance that is not currently available in Portugal. According to the Portuguese Consumer Protection Association, “there is no multi-risk liability insurance, which shows a serious ignorance on the part of lawmakers.” “In addition, the law is not clear about any damages to be covered.”
The average cost of Local Lodging in Porto approached the values registered in Lisbon – approximately €100 euros per night – according to recent data calculated and released by Confidencial Imobiliário. In 2017, there was a 30% gap between the 2 cities. According to the index, the highest average daily rate was recorded in Lisbon in the Chiado-Bairro Alto district (€138).
Local Lodging “has not been a problem for the Algarve. It’s being very positive for the economy and urban regeneration,” according to Faro mayor, Rogério Bacalhau. The Algarve’s municipalities have no plans to create quotas or “containment zones” for Local Lodging, a possibility opened by recent legislative reforms. The Algarve concentrates the majority of “AL” accommodations in Portugal, far outweighing Lisbon and Porto combined.
Since the approval of the legislation amending the rules for Local Lodging, 836 new units have been opened in Lisbon and 297 in Porto. President Marcelo Rebelo de Sousa has already signed the bill which should be published soon, coming into force 60 days after.
After the hubbub of the summer, many Local Lodging owners wish to book long-term rentals to assure low-season occupancy over the quieter winter months. As always, there are pros and cons, particularly when distinguishing between long and short term lets is not always easy. (more…)
Owners who remove their properties from Local Lodging and make them available for long-term letting can be spared mandatory CGT assessment. This push to long-term letting integrates the government’s package of proposals in the 2018 State Budget. Once confirmed, this measure will be the only Capital Gains Tax refuge once an owner stops an “AL” activity.
Local Lodging accommodated one third of visitors to Portugal in 2017, an annualised increase of almost 29%, according to ALEP (Association of Local Lodging in Portugal). As of July 2018, there are currently more than 72,000 Local Lodging establishments registered nationwide.
France is the EU country with the highest number of tourist beds available. According to 2016 data collected by the European Statistical Office, the French tourist industry registered 5.1 million beds or 16.4% of the EU total. Italy ranked a close second with 4.9 million beds (15.8%). Spain placed third with 3.5 million beds or 11.2%. Over the same period, Portugal recorded approximately 567,800 tourist accommodations, an increase of 16,100 beds (+3%) when compared to the previous year.
A study carried out by the movement “Oporto is not for sale” reveals that, among the 6,198 Local Lodging registrations in Portugal’s second largest city, 51.3% are enrolled by companies. The leading company holds 70 properties while there are 84 “AL” enterprises exceeding the legal limit of 7 registrations.
Thus far this summer, ASAE has carried out 610 raids on Tourist Enterprises and Local Lodging establishments throughout Portugal. The operation led to the suspension of three “AL” operations for non-compliance with hygiene requirements. The investigating teams instituted 111 administrative actions and a criminal proceeding, primarily for infractions regarding non-registration of a tourist activity.