If you’ve bought an apartment and plan to start renting it as Local Accommodation (AL), you need to understand how the new law will impact you. Here’s a simplified summary of what matters most about local accommodation rentals Portugal 2023.
</br>accomodation
- Local Accommodation Tax: There’s a new Extraordinary Contribution for Local Accommodation Rentals (CEAL) at 15%, down from the initial 35% proposal. This tax applies only to autonomous units (apartments and lodging establishments in autonomous units) and excludes villas and entire buildings dedicated to AL. Individuals who use their permanent residence for AL for up to 120 days a year are exempt.
</br>
- Registration Freeze: New registrations for Local Accommodation Rentals Units are frozen in coastal areas including Tavira but continue in low-density territories, covering 165 municipalities and around 70 parishes in non-low-density municipalities.
</br>
- Unanimous Approval: Condominiums now require unanimous approval for new AL installations. The quorum for suspending a license has been set at two-thirds.
</br>
- CEAL Revenue: CEAL revenue supports housing policies and similar agencies in Madeira and the Azores, extending benefits as requested.
</br>
- Benefit for Exiting AL: Owners who withdraw properties from AL by the end of 2024 and shift to traditional rentals can enjoy tax exemptions on rental income until the end of 2029.
- This applies to AL units registered before December 31, 2022, with rental contracts signed by the end of 2024.
</br>
Despite these changes, the spirit of local accommodation in Portugal remains strong.
The country continues to be an attractive destination for tourists, and with smart planning and adaptability, property owners can still make the most of their investments.
So, don’t be disheartened by the adjustments – with the right approach, your rental property can remain a valuable asset in the years to come.
</br>
💥 Curious about the new law regarding Golden Visas? Check it here.
</br>
Isabel Romano | Lemon Tree Homes
Isabel Romano | + 351 933263788 | hello@lemontreehomes.pt
https://www.youtube.com/@isabelromanolemontreehomes
https://lemontreehomes.pt/properties/
</br>
