Soon, properties for let will have to be registered on a national database held by Turismo de Portugal, according to the Ministry of Economy, as part of a tightening up of regulations for local accommodation.
Apartments and houses rented to tourists for short periods of time have to register with Tourism of Portugal as local accommodation, according to a ministry spokesman.
The Secretary of State for Tourism commented today that the register will hold details of all rental properties for tourists as properties have proliferated on websites and he claims that the idea is not to "prohibit or impede the local rental market," adding that this is "a product that has its place in the market and must compete with other accommodation types."
"The regulation of local accommodation is being reviewed," confirmed the ministry, stressing that this revision respects "the principles that have guided the legislative changes in the tourism sector that the Government has already approved i.e. less bureaucracy and freedom of initiative."
There already is a Alojamento Local registration scheme run by local councils for rental accommodation but a large number of homes continue completely to evade the control of the authorities. This has meant that not only are properties not registered, but owners also do not pay taxes, VAT, IRS or IRC, depending on whether properties are owned by individuals or companies and their level of turnover.
For owners who do not comply there will be sharp increases in fines and other sanctions, and now the possibility of immediate closure for non-compliance. Fines of ‘many thousands of euros’ are to be put in place for those continuing to flout the law.
The new National Register of Local Accommodation aims somehow to reduce bureaucracy and to force property owners who rent to tourists for short periods of time to register their houses and to meet a number of requirements.
The underlying reason is to combat tax evasion and unfair competition which penalises fully compliant tourist developments.
Inspections already have begun by searching for listings on the Internet and monitoring is being strengthened, soon with added links between the Tourism of Portugal register and the Tax Authority.
The new requirements include the obligation of mounting a sign on the door of the property and having a complaints book but many properties will not be able to comply with other rules and regulations which is one of the reasons owners have not registered.
Comments
What would happen if the rental guests are not known to you and either refuse to provide tax codes or give you false information? I agree, it's the thin edge of the wedge and while I concur that owners should pay tax on the income generated, some will stop doing this and then tourism as a whole (and the income that the Portuguese government enjoy) will reduce when people start looking elsewhere to holiday.
All property managers should be registered and be made responsible for the license and declaration of income. The new laws are long overdue.
This obsession for records and NIF numbers is symptomatic of a state machine that does not trust its citizens, so creates more and more bizarre ways of tracking them and trying to catch them out with form filling bureaucracy. The involvement now of Turismo de Portugal adds yet another senseless level of form filling for zero purpose but to amass more names and numbers so the tax office can send out increasingly inaccurate tax demands. Yes, dental records will be next....