The Government has created an innovative solution, which it calls the Right to Lifetime Housing, which allows families to live in a property all their lives, without actually buying it. The plan begins with the payment of a deposit (a kind of down payment), which is held by the owner. In this scheme, the resident (who cannot be called a “tenant”) pays a monthly instalment (which cannot be referred to as “rent”). The owner receives the monthly income and “consumes” a portion of the initial deposit. In this model, without formally selling the property, the property rights remain limited, since only the resident can suspend the contract and vacate the dwelling.
As reported by the FT, the EU blacklist threatens to expose British overseas interests. If Great Britain abandons the European Union as scheduled, some UK territories may become candidates for possible inclusion in future versions of the “dirty money” list. The Americans are also unhappy with Brussels. The US seems more vexed about which territories appear on the blacklist rather than the practices that resulted in this “naming and shaming”. The deadline to form a majority to block the Blacklist is 12 March. The European Parliament is scheduled to vote its approval for the blacklist in the next week. It is improbable that the initiative can be blocked. Despite backing from France and renewed US pressure, it will be difficult for the UK to muster enough support to stop the update.
Insurance providing civil liability coverage guaranteeing the property against damages caused by guests and third parties is required of all operators responsible for “AL” services. The minimum capital per claim is €75,000. Entities operating “AL” units that are part of a condominium must also have coverage guaranteeing property damage caused by fire in or from the “AL” unit. These insurances are mandatory for all Local Lodging establishments registered after 21 October 2018. Their absence is grounds for cancellation of “AL” registrations. Units registered before this date have up to two years to meet the requirements.
The euroFINESCO information distributions reached a new landmark with the release of nº 400. The article addresses the newly updated EU Blacklist that highlights the growing rift between the EU and Donald Trump’s “America First”. euroFINESCO offers a comprehensive library of information on a host of subjects related to taxation and compliance in Portugal. PDF downloads are available free of charge at www.eurofinesco.com/en/our-publications.
Last year, fewer British holidaymakers chose Portugal as a tourist destination, less 111,667 than in 2017. Despite the drop, the overall number of foreign tourists grew by 0.4% last year, enough to reach a new record high at 12.76 million. This increase was mostly due to a 20% jump in American tourism, accounting for an additional 135,000 US visitors in 2018.
The distraction of holidaymakers and the lack of security at some “AL” flats have led to a rise in thefts at Local Lodging establishments, mainly those located in the “Baixa” district of downtown Lisbon. In response, law enforcement (“PSP”) has started a prevention program with the owners called “Blue Lock”.