HOWEVER this is not the case and not as worrying as it appears. The tax rate will in fact remain the same as last year, i.e. 25%, the difference being that the tax is being levied on 35% of the income as opposed to 15% of the income. This in effect means that the final tax rate has increased from a 3.75% to 8.75% which will only be reflected in tax bills issued in 2018 in respect of 2017 income.
At Sovereign we are available to assist you with all your tax queries, whether you rent your property or not. We assist clients who just need fiscal representation in order to ensure that any tax department correspondence is dealt with promptly and efficiently or we can provide full accountancy services for clients who rent out their properties.
It is no longer legal to rent the property and simply declare the income via a yearly tax return without the necessary registrations.
If you have a long term rental contract it must be registered at the tax department and receipts for the income must be issued online. If you have short term rentals you must have an AL licence and someone must be registered as self-employed in Portugal to effectively ‘run’ the rental business. At Sovereign we can assist you with all of the above services to get you properly registered, ensure you complete your accounts on time and that you comply with the ever changing regulations for property owners.
It is easy to fall foul of the Portuguese tax department which can lead to fines and interest payments on taxes due. Sovereign have been assisting clients since 1999 and with their full complement of bilingual accountants and administrative personnel they are fully qualified to assist with property ownership and taxes in Portugal.
Contact us today!

For more information, Tel: 282340480, email: port@sovereigngroup.com or visit: www.sovereigngroup.com