a modest income from your
property in Portugal
when you are not using it is a great way to ensure any
maintenance, gardening and swimming pool bills are taken
care of without having to dip into your savings.
However recently passed
anyone carrying out this practice without declaring it
to the local council and applying for the relevant
rental licence (Licença de Utilização Turística)
are liable to face hefty fines if caught and prosecuted.
The Portuguese government categorises properties in need
of a licence as those which are rented out for period of
less than 30 consecutive days. So if your
property in Portugal
is utilised in this fashion then you must obtain the
correct licence from your local council (Câmara) to
avoid any brushes with the law.
de Segurança Alimentar e Económica, the governmental body
overseeing the issue of these licences, is already
clamping down heavily on establishments whom do not have
the correct paperwork though these have mainly been in
. However during the earliest part of 2011
representatives have started trawling through the
various properties available for let on the
was introduced to ensure high standards of
accommodation in Portugal and to ensure all meet safety
and hygiene standards. After all Portugal's main source
of income does rely on tourism and ensuring the safety
of guests to this country is paramount to ensure they
return year after year.
Clampdowns by the ASEA have
already seen hefty fines levied to property owners in
Algarve who rent out their properties on short term
basis, but have failed to obtain the correct licence(s).
The fines for failing to comply are unlimited and could
run into thousands so it is worthwhile arranging the
paperwork if you are thinking of renting out your
property to offset the maintenance costs or, if you are
already doing so.
Apply for a Short Term Rental Licence in Portugal
Short term rental licences are issued by
the local council office (Câmara) to your property. However as this is
obtaining the relevant licence is not as easy as you
central government has passed the legislation and is
enforcing it sometimes they forget to keep local
governmental offices informed of changes. Although the
law has been in force for over two years, most councils
in Portugal are unfamiliar with the paperwork required
to secure a short term rental licence never mind issuing
However in addition to the
stipulations of central government fAs well as there being a central law each
individual council is able to stipulate additional
conditions upon a licence application.
There are various
companies, however most based in the Algarve, whom are equipped
to handle the bureaucracy involved in obtaining these
licences on behalf of property owners. There are
handling fees to be paid to these companies, though they
will need copies of documentation for the property in order to
submit the application for a licence.
The plus sides to the
licensing for property owners include state backed
promotion and inclusion on a national register of rental
properties promoted to thousands of overseas clients
looking to holiday in Portugal.
Required for Application of a Short Term Rental Licence
To apply for a short term
rental licence you will need to provide the following
documentation alongside the application form to your
local council office:
Copy of Property Owners'
Identity Card or Passport;
Copy of the Property's title Deed (Cardeneta Urbana);
Copies of Terms of Responsibility from those responsible
for installing Gas, Electric, Water and/or central
heating and air conditioning etc;
A health and safety
plan for the property;
Terms of responsibility from person/company responsible
in formulating the Health and Safety plan for the
Floor plan of the property;
and Equipment needed for Short Term Rental Licence
To obtain your short term
rental licence you will need to ensure your property is
equipped with the following documentation, equipment and
to be of a standard considered adequate by an inspector:
Fire safety equipment
(extinguishers and fire blankets in the kitchen)
Good general living conditions
Buildings must be connected to all mains utilities
(water, electricity, gas and sewage) or have their
own provision of systems in place.
The property must have hot and cold running water
The property needs to have some sort of ventilation
system (air vents)
The property needs to be furnished and provide
equipment and utensils in accordance to
advertised capacity and client needs
The property needs to have adequate exterior locks
and on bathroom doors.
There must be at least one bathroom for at least
three bedrooms. The bathroom should include toilet,
basin and bath or shower.
Clean change of linen should be made available once
as week (minimum)
There needs to be a book indicating the rules and
regulations for use of the property
Programme for cleaning of the property
Complaints book (Livro de Reclamacoes)
First aid facilities including relevant emergency
telephone numbers displayed somewhere prominently
for all appliances
within the property must be made available
Adequate safety measures should be in place (EU
standard) around swimming pools.
Implications of Running a Short Term Rental Property
thing which does escape many people's minds is the tax
implication of running a short term rental property in
Portugal. Don't' forget if you are earning any type of
income in Portugal you will need to declare this to the
government at the end of the tax year.
Income earned in Portugal is taxable
in Portugal. However if you are from the United Kingdom
and own a property in Portugal are are leasing it out on
a short term rental basis, don't worry your income won't
be taxed twice. Portugal and the United Kingdom have a
double taxation agreement ensuring you won't be taxed
twice on one income. However you will have to declare
which country the income from your short term holiday
rental is earned and pay the taxes accordingly.
of Being Registered as a Short Term holiday
accommodation in Portugal
registering your property as a short term holiday rental
you will benefit from full backing from the Portuguese
tourist board and all the recommendations they can
provide. In addition to this you will also have the
peace of mind you are running your property to the
letter of the law.
one of the most significant benefits from registering is
if you wish to sell your property it will be sold with a
rental licence, which in itself has it's own value.