Local Lodging operators who opt to be assessed under the tax rules of Category F (long-term rentals) may deduct commissions from this income paid to online reservation platforms. However, those carrying out their tourist business under Category B as Sole Traders do not deduct specific expenses but rather are automatically allotted 65% from their gross “AL” income to cover operating expenses.
Parents with children studying in universities in the interior of the country can receive a 40% tax credit in 2019 for expenses up to €1,000. This tax break is an increase from 30% with a maximum of €800 as compared to families whose children normally live and study from home.
The levy on holidaymakers will be applied to all guests over the age of 13 who stay up to 5 consecutive nights in hotels, apartments, villages and tourist developments, campsites or local lodging establishments in the municipality of Óbidos. The town council hopes to collect ±€200,000 annually in fresh revenues with the new charge.
Following the automatic IRS, the “AT” advances to automate VAT in three phases.
The Tax and Customs Authority has taken the first step in automating the VAT declaration, making available pre-filling of certain amounts in the fields related to “transfers of goods and services” with tax paid and those corresponding to “Tax in favour of the State”. Continue reading
Despite an increase of three tenths, Portuguese taxation remained below the European average last year. In Portugal, the weight of taxes reached 40.2% of GDP and in the Euro Zone, 41.4%. France had the heaviest load (48.4%) and Ireland the lightest (23.5%).
If you are a landlord and, during the term of a lease, increase your tenant’s rent by the amount of inflation (the maximum allowed by law), you must inform Finanças what the new rent will be. This communication to the Tax Authority is mandatory and can lead to the payment of a 10% Stamp Duty on the amount of the monthly rent increase.
The new value must be communicated through the “AT” website by the end of the month following the month in which the change occurs. Payment can be made at the Local Finanças office, at an ATM or via electronic banking. When communicating the change online, you will be issued a payment note with the multibanco payment reference on the “AT” website.
If the amount due is less than €10, there is a technical exemption, and no tax is due. For example, you charged a monthly rent of €500 in 2017. The inflation adjustment percentage is 1.15% or €5.75. The difference is less than €10 so no Stamp Duty is due.
For the second consecutive year, Portugal has been recognised as the top tourist destination by the World Travel Awards. At the same time, the Conrad was voted the best luxury leisure resort. The prize is the result of balloting by the general public, but is made principally by 200 thousand tourist industry professionals representing from 160 countries.
Portugal left behind competitors such as South Africa, Brazil, USA, India, Indonesia, Jamaica, Maldives, Sri Lanka, Malaysia, Vietnam, New Zealand as well as neighbouring Spain with 55 nominations and 16 first place finishes, a national record.
Beginning in January, paper invoices will start to be phased out with transactions transmitted in real time directly to the “AT” (Tax Authority). Consumers will only receive a hard copy if requested. It is another step towards the dematerialisation of invoices as part of the Simplex + initiative. In the initial phase, merchants must install the applications to establish a direct link to the Finanças’ e-fatura system via a “QR” (quick response) code. Consumers will no longer need to give out their taxpayer number.
As a relatively new tax, it is not surprising that many have been caught unaware of their liability to pay AIMI and, more importantly, how they can avoid the disturbing consequences. The additional assessment to IMI (Adicional Imposto Municipal Imobiliário) is sending shock waves to individuals and company owners who unwittingly find themselves under the weight of this added fiscal obligation. Continue reading