To rent out a property for tourist lets, you must also have an AL Touristic licence issued by the local Camâra and if you already have one, your business activity registration should have been copied to the Camâra by 27 December 2014.
It is also necessary to deal with the social security requirements of registration although you may be exempt from payment in Portugal if you are a pensioner or already pay social security in your own country of residence within the EU.
At Sovereign-Consultoria Lda, we have been busy registering our clients to ensure they comply with the new regulations.
The change in reporting letting income created by the new law will mean a substantial reduction in tax payable on the income you receive but requires a disciplined and ongoing relationship with your accountant as invoices for each rent received must be promptly reported to the Portuguese tax office.
The calculation of your tax will be on the basis of your turnover. The “Simplified Tax Regime” will apply, meaning your tax will be based on a fixed amount of profit equal to 15% of your rental income. A flat tax rate of 25% will apply to that 15% profit which will determine a final tax rate of 3.75%.
Sovereign in Lagoa are able to assist with your AL licence application and submit all the necessary registrations for you and act as ongoing accountants for your business activity.
Sovereign provides full assistance for an annual fee which will cover the following services:
• Fiscal Representation;
• Tax Return preparation and filing;
• Online invoicing and monthly reports compliance;
• Accounts & book-keeping;
Whether you already have an AL Licence and need an accountant or are thinking of renting your property for the first time, contact Sovereign for assistance to ensure you too are fully compliant.

For more information,Tel: (+351) 282 340 480, Fax: (+351) 282 342 259 or visit: www.Sovereign Group.com/portugal