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Alojamento Local 2019 – New Rules

Are you getting ready for the next rentals season? Well, there are new rules for alojamento local owners in 2019. Casas do Barlavento reunited the most important facts of this change, so that you are well informed of all of the changes that occurred, specially for the ones who have an open activity like freelancers.


At the end of last year, there were big changes in the alojamentos locais sector. It was given some power to town hall in order to improve the management of alojamento local in containment areas. (Read more about October 2018 changes here).



New rules for alojamento local started in January 2019, what changed?


Some changes started back in October 2018, however, in 2019 a new contributory scheme for social security came into action. This scheme affects all owners who made up until 200.000€ per year and is based on the non-obligatoriness of paying contributions to social security. This action only reaches those who have business on their own and alojamento local with economic activity code (CAE) on rental agreement (CAE 55201 or 55204). For hotel owners, the obligation of paying contributions to social security remains.

To stay abreast about all October 2018 changes please read Autoridade de Segurança Alimentar e Económica article.


Do all self-employed workers have quarterly obligations to social security?


With the new establishment to social security, all alojamento local owners with open and unique activity, that is, with only one source of income, they are not obligated to present quarterly obligations.

If you are an employee and at the same time, you’re exploring an alojamento local property you are still not obligated to show social security statements, this happens only if activities have no relation between them. If your quarterly remuneration exceeds 4 times the IAS (social support index) you will have to declare.


Has the capital gains taxation also changed in 2019 for Alojamento local properties?

This topic is not yet in effect in this year's stat, but the government has asked for a review of this situation to be applied this current year. This new action will exempt the owners from the capital gains taxation, when they have a business property and then change it to a private property.

Previously, in cases of transition from business to private, capital gains were taxed in which the owner would pay an extremely high tax bill relative to the year of transition of the property.

With the approval of this action, the taxes related to the capital gain taxation will be applied when the property is sold, but an evaluation will be necessary of the acquisition value and market value as long as the property is affected to alojamento local business. If you want to change to private property a new evaluation will be needed in the same terms above mentioned. The percentage of taxes is variable according to the purpose you give to the property. If you have a business property 95% of your annual profit will be taxed, if the property is private only 50% of the sales profit will be taxed . (Read more about The capital gains taxation here)

Be prepared to face all legal changes when you have to pay the taxes in order to not be caught off guard.