Based on the number of overnight stays last year (6.8 million) to be charged at 2 euros per night per person, the total anticipated revenue for the municipality is expected to reach 13 million euros. The city is preparing the process of applying the new tourist tax and anticipates implementing the new levy in January next year.
The centrist party has presented a draft resolution to the legislature, recommending that the Government distinguish between occasional vs permanent provision of AL services. This suggested distinction preserves the notion of periodic operation of one’s principal residence and / or secondary residence. Under the proposal, the total number of properties under management should not exceed two.
Beginning 01 July 2017, any website advertising local accommodations in Portugal must display the corresponding AL registration number. Failure to do so will lead to fines from a minimum of €125 to maximum of €32,500 as mandated in Decree-law nº80/2017.
The Portuguese Nationality Law has been revised to simplify the implementation procedures. The main amendments to the statutes are: opening attribution of Portuguese nationality to grandchildren of Portuguese living abroad; simplifying proof of knowledge of the Portuguese language; and reducing the cases in which criminal records are required.
There are currently 1.6 million homeowners who pay their municipal property tax (IMI) in two or three instalments, waiting until the months of July and November to settle their accounts with the tax authority. As of 2018, they will be able to make full payment before the due date if it proves more convenient. This option is just one of many new measures of “Simplex + 2017″.
To promote the languishing traditional letting, the Government is studying fiscal incentives for landlords who choose to enter into up to 10 year lease contracts with their tenants. One of measure under consideration is to reduce the 28% rate currently applied, as revealed in the “Jornal de Negócios”.
In May of 2017, only 81 requests were recorded for Golden Visas. Potential candidates complained of excessive delays in processing paperwork as compared with other countries with similar programs. Over the past 5 years, the plan has accounted for over 3 billion Euros in investments in Portuguese real estate investment.
The European Commission is developing a pan-European Pension Product (PEPP): a simple and cost-effective retirement plan which will be portable across EU member states. The PEPP will be designed to give hundreds of millions of savers throughout the EU more choice where currently options are often few and far between. It will also create new growth opportunities for pension providers to take advantage of a European single market for personal pensions estimated to grow to 2.1 trillion Euros over the next decade, as reported recently in the Financial Times.
When considering Local Lodging – homeowners letting to holidaymakers – the “peer-to-peer” model springs to mind. However, there is a parallel “Local Lodging” economy, one that mimics the traditional tourist mould far more closely that one might expect. From the Algarve to Aveiro, there are seven major hotel groups that, in addition to their conventional hotel resorts, are engaged in “Local Lodging”, taking advantage of the simplified rules available under Local Lodging. In all, these major economic groups have more than 350 “AL” apartments in the tourist market. Continue reading