Yet another reason not to join AL short-term rental scheme

Paul Rees 21 August 2017

A proposal for owners of short-term rental apartments and townhouse in condominium schemes to pay higher fees, forms a key part of a report from a Socialist and left Bloc working group on housing policy.

Owners of properties who rent to tourists under the Alojamento Local scheme, will be paying more condominium fees 'as their clients use the common parts of properties more than owner-occupiers.'

"It is already a common practice, there are many condominiums that already do this and have rules that cover this situation," explained a source in the PM’s office, adding that, "it is necessary to regulate short-term rentals in an intelligent manner that solves the problem and in a way that does not kill this new economy activity that is beneficial to the country."

A few weeks ago, the Environment Minister, João Matos Fernandes, admitted this new form of taxation is a distinct possibility.

This measure is expected to clash with the bill that was handed to parliament by MPs Carlos Pereira and Filipe Neto Brandão, in which condominiums are given the power to authorise someone who wants to renting his property to short-term tourists.

Both António Costa and João Matos Fernandes are fully against this measure and it is certain to be withdrawn but the raising of condominium charges is another way of homing in on short-term rental landlords, adding yet another barrier to those being encouraged to join the mandatory Alojamento Local scheme.

Comments

+2 #7 Frits 2017-08-27 11:40

Farfetchesd as ever. Owners who do NOT rent out should be aware that the value of their property/apartment will drop in price too when letting in the same builiding will become impossible/not worth the trouble.

+3 #6 PeterL 2017-08-22 09:09

Quoting Peter Booker:

"How do raised condo fees end up at the .Treasury?" If properly declared, they enter the normal income tax system. Is that difficult?

Condo fees are set at an agreed level to run the condominium - gardening, pool etc - and a set-aside amount for large repairs and improvements such as exterior painting. Condo associations are not money making ventures, they are coperative associations to run the properies. There is no IRC as there is no need to create a trading surplus after costs and topping up the sinking fund. There will be a bit of VAT payable on buying in services etc but the government's plan to charge AL apartment owners higher fees seems a bizarre initiative, unless any such fee supplement goes straight to the Treasury

+3 #5 Peter Booker 2017-08-22 09:03

"How do raised condo fees end up at the .Treasury?" If properly declared, they enter the normal income tax system. Is that difficult?

+5 #4 PeterL 2017-08-22 00:03

Quoting Neil M:

Short term rentals pay huge money particularly during the summer months, compared to long term contracts. The government has to raise revenue, it's normal practice in all developed economies.

How do raised condo fees end up at the .Treasury?

+4 #3 Neil M 2017-08-21 23:49

Short term rentals pay huge money particularly during the summer months, compared to long term contracts. The government has to raise revenue, it's normal practice in all developed economies.

+2 #2 Charly 2017-08-21 23:01

It is well known that many Portugese politicians have a very sick mind ! This is a good proof of it.

+2 #1 robert6 2017-08-21 22:34

There is no difference between permanent residents making use of, for instance a communal pool, or non residents and/or their guests. One could argue that a permanent resident makes more use of the facilities than someone who is not there all of the time and rents out the property. Often there are void periods, not so with permanent residency. The whole argument is farfetched and should be consider a non event.

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