By: DENNIS SWING GREENE
International Fiscal Consultant for euroFINESCO
eurofinesco@portugalresident.com
Hospedagem: the hybrid solution
This is the third in a four part series examining different alternatives to Holiday Let Licensing:
1) Keeping your Habitation Licence
2) Organising under “RAU”
3) “Hospedagem”- the Hybrid Solution
4) Compliance – Getting it Right
MANY FOREIGN homeowners wish to make extra income from their properties.
While a few run rental activities, from January to December, most prefer a mixed arrangement for most of the year: private usage (typically in the off-season); for a few weeks or months (usually in the peak season summer months), letting out to tourists on a weekly or fortnightly basis.
Within this hybrid category, some find their clients themselves, either through personal contacts or listing over the internet. Others make arrangements with agencies (both in Portugal and abroad), which find and manage the holidaymakers who will be using the property.
The guest house classification (hospedagem) is intended for seasonal, commercial usage. Licensing contemplates both private usage by the owner as well as letting out to tourists – by the house, apartment or room by room. Regulations are far more basic than the tourist development Moradia Turística (tourist house). The only real obstacles are the submission of technical plans and the defined review process.
Your choices
This solution contemplates three alternatives:
Hospedaria is the traditional guest house or bed and breakfast type establishment. Normally, comprised of a minimum of six and up to 30 bedrooms, this option would normally be complete with proper reception and support areas for the staff.
Casas de Hóspedes is thecategory for letting the complete villa.
Quartos Particulares is the option of letting out rooms individually.
Hospedagem has been adopted by many councils (câmaras) throughout Portugal. In the Alentejo, it is quite popular in rural townships, for accommodating hunters during the hunting season. In the Algarve, however, not all of the councils have passed this alternative into local statutes. Many local officials see this option as a scaled down hotel or inn, and are uncomfortable with the concept of mixed usage. Only a few licences have actually been issued, most of which have been for new properties. Licensing changeovers (habitation to hospedagem) are still uncommon.
Licensing
Like its cousin, the Moradia Turística, guest house, also requires formal licensing. However, not all câmaras have adopted this regulatory option, so it is important to determine what may or may not exist in your council. Unlike the elaborate regulations for full-time tourist houses, rules for Hospedagem tend to be simple and based on common sense.
Once again, the main hurdles are the architectural project and the safety plan. While neither is formidable, both require qualified professionals to take responsibility for the projects, as well as assure an absence of illegal modifications to the property.
Next – Part four: “Compliance – getting it right”
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