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Local Accomodation in Portugal, What changed

Local accommodation law in Portugal - CHANGES ?


Registration

Whenever local accommodation is registered in an autonomous fraction of a building on property that is intended for housing, the registration must be previously approved by the condominium.

This decision by the condominium to authorize the installation of local accommodation must be taken by agreement of all property owners and the respective minutes must be addressed to the Mayor of the City Council.

These changes apply to registrations made after the entry into force of Law no. 56/2023 of 6 October.

Prior communication

WHAT INFORMATION MUST BE BE INCLUDED IN THE COMMUNICATION TO THE CITY COUNCIL?

It is now mandatory to include the rental period that should not exceed 120 (one hundred and twenty) days.

Opening authorization to the public

INTRANSMISSIBILITY OF THE OPENING TITLE 

The registration number of any and all local accommodation, regardless of its location, is now personal and non-transferable, even if it is owned or owned by a legal entity, unlike what was in force until now and which applied to properties . This limitation does not apply in the case of succession.


EXPIRATION OF THE OPENING TITLE  (Licence to operate)

The licence expires in the event of the transfer of any part of the capital social entity of the legal person holding the registration, regardless of the percentage, when until now it only expired with the transfer of more than 50% of the share capital.

Cancellation of registration

The condominium assembly may oppose the exercise of local accommodation by deliberation of at least two thirds of the building's permission, unless: 

a) The constitutive title of the horizontal property expressly provides for the use of the fraction for local accommodation purposes; or

b) There is a prior express decision by the condominium assembly to authorize the use of the fraction for local accommodation.

In these cases of opposition from the condominium, cancellation of registration no longer depends on the decision of the President of the territorially competent Municipal Council. 

The amendment to the diploma now establishes that this condominium deliberation must be sent to the President of the City Council for information only, taking effect 60 days after this remission. 

Cancellation of registration implies the impossibility of the property being operated as accommodation location, regardless of the respective entity, until otherwise decided by the assembly of condominium owners, there being no maximum period for this cessation of exploitation, contrary to the planned so far (1 year).

Signage

Holders of local accommodation establishments  must display in a clearly visible place inside their establishments signage with the times set out in the General Noise Regulations, approved by DL no. 9/2007 of January 17th.


RENEWAL OF LOCAL ACCOMMODATION REGISTRATION


How long does local accommodation registration last?

Local accommodation registration now lasts for 5 (five) years and is renewable for equal periods, with the first renewal occurring 5 (five) years after issuance of the title opening to the public.

Renewals are subject to express deliberation by the City Council competent authority,


SUSPENSION OF NEW REGISTRATIONS

The issuance of new local accommodation registrations in the modalities of apartments and accommodation establishments integrated into an autonomous part of a building.

Exceptions to this suspension are: 

a) new registrations of local accommodation in interior areas of the country  identified in the annex to the law No. 208/2017, of 13 July;

b) properties included in the Revive Natureza Fund, under the terms of Decree-Law no.161/2019, of October 25;

c) new registrations of local accommodation establishments in the Autonomous Regions of Madeira and Azores;


 Lagos
- alojamento local 2.webp

REVIEW OF EXISTING LOCAL ACCOMMODATION REGISTRATIONS

Which registrations are subject to review and under what terms?

Local accommodation records issued on the date of entry into force of Law 56/2023 of 6 October are subject to review in 2030, under the terms provided for the renewal of registrations of local establishment, of the new Article 6.o-A of DL no. 128/2014, of 29 August. In this sense, after the first review, these registrations are renewable for 5 years.


EXPIRATION OF INACTIVE REGISTRATIONS


In what situations do local accommodation registrations expire? 

Holders of local accommodation registrations are required to provide proof, through presentation of a contribution declaration, of maintenance of exploration activity, within the deadline 2 (two) months from the entry into force of this law, under penalty of seeing the respective registrations canceled, by decision of the Mayor of the Territorial Municipal Council competent.


TAXES - EXTRAORDINARY CONTRIBUTION 

What does this new contribution consist of? 

It is an extraordinary tax on properties that remain allocated to the Local Accommodation activity.

Who is obliged to pay? 

Owners operating Local Accommodation establishments. Owners who are not license holders are (only) subsidiarily responsible for payment.

What properties are covered? 

Residential properties allocated to Local Accommodation, in the form of apartments and accommodation establishments integrated into autonomous units or building divisions capable of independent use of a residential nature (in accordance with paragraph 2 of article 6 CIMI), when they include a valid local accommodation license.

Are there any exclusions? 

Yes. Properties located in the interior of the country are not subject to this tax.

Is there any exemption? 

Yes. Residential properties that do not constitute autonomous fractions are exempt, or parts or divisions capable of independent use. Local accommodation units installed in their own housing and permanent, as long as exploitation does not exceed 120 days per year.

How is the tax base calculated? 

It is calculated based on the application of two coefficients to the gross private area of the properties subjects: the economic coefficient of Local Accommodation and the urban pressure coefficient.

Who calculates these coefficients? 

The coefficients in question are officially calculated and published annually by decree of the Finance Ministry. For the year 2023, they are published within 60 days of the publication of Law no. 56/2023.

What is the applicable rate? 

CEAL will be charged based on a rate of 15%.

How is the settlement and payment of CEAL processed? The contribution is self-liquidated, through an official model declaration to be delivered by the 20th of June of each year by reference to the previous year, and must be paid by June 25th.

Is CEAL deductible for IRC calculation purposes?

No.


Source: Programa Habitação +, CCA Law Firm



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