Despite of the hospitality industry opposition, the law adopted in August, is in force. On November 27, 2014 Portugal simplified the rules of housing short-term lease: there will be less documentation and the owners will earn more. Three major innovations will make landlord’s life easier and put him in a better position than in other EU countries.
Firstly, all those who don’t want to rent out their housing will be restored from the paperwork. As soon as the Alojamento Local license and personal tax identification number are registered in the local mayor's office, the owner will notify the city authorities about the new tenants in electronic form.
Second, the tax on property lease in Portugal is reduced. The tax credit will amount 85% of the revenue and will be deducted from 15% of the rent only. The rate will amount 25% of these 15%, or 3.75% of the total payment made by tenants. It turns out that any owner will be able to earn more, or he will slightly reduce the rent, and then these are his guests who will win.
Thirdly, the travel agency will place objects of Alojamento Local owners in its database, which will help to attract more tenants. In addition, the Alojamento Local number mentioned in ads on leasing sites will be an advantage in the eyes of the users of such sites.
But the point is that the law liberalizes the lessor and lessee relationship rather than negates all the rules. After all, the property owner is still obliged to observe safety and cleanliness standards, as well as to report on his income and pay taxes. A plaque with the Alojamento Local number should be placed on the door, and book of complaints and suggestions is also required.
The short-term rental is a difficult enterprise in many other European countries. For example, in Spain. While in the Balearic Islands only houses may be rented out, not apartments. In Barcelona extra fee has to be charged from tourists and short-term rental in Madrid has to be 5 nights and more. Hotel lobby is strong there.
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