Local Lodging “has not been a problem for the Algarve. It’s being very positive for the economy and urban regeneration,” according to Faro mayor, Rogério Bacalhau. The Algarve’s municipalities have no plans to create quotas or “containment zones” for Local Lodging, a possibility opened by recent legislative reforms. The Algarve concentrates the majority of “AL” accommodations in Portugal, far outweighing Lisbon and Porto combined.
Despite millions in tax concessions, the overall impact on tax revenues from Non-Habitual Residents has proven to be propitious for Portugal, due to total taxable income generated, such as capital gains, rates, VAT, etc. Simultaneously, there is also a significantly healthy impact on local economies arising from new construction, urban rehabilitation and real estate transactions.