Self catering accommodation and licensing requirements – Part one: Current Legislation
By: DENNIS SWING-GREENE
International Fiscal Consultant for euroFINESCO
financial@portugalresident.com
UNDER CURRENT Portuguese law, for a property to be required to have specific zoning licensing when letting to tourists, it must be considered as part of a tourist development, Empreendimento Turístico, and deemed to be a complementary element to tourist lodging, Meio Complementar de Alojamento Turístico, as well as engaged in the activity of providing tourist lodging services.
In fact, in 2006, numerous villas in Vale do Lobo were denied their petitions for Moradia Turística licenses because they were part of a housing development (Urbanização). According to a ruling of the national tourist authority, Direcção-Geral de Turismo, a change in licensing would imply a revision in purpose (habitation to tourism) of the entire development.
In short, according to current legislation, the following minimum conditions must be met to attain classification of a complementary element to tourist lodging within a tourist development:
1) the property must be properly furnished and equipped;
2) there must be regular cleaning services provided;
3) the offering must be advertised via public media and;
4) the lodging must be rented through an agent or travel agent.
Outside of these parameters, lets to holidaymakers fall under the new general renting law (Novo Regime de Arrendamento Urbano – NRAU) and are considered as part of non-permanent housing for special transitory purposes and follow all of the basic norms of standard rental activities, with the exception that there is no minimum letting period stipulated, nor is a written contract required when rentals are for a period of less than six months.
Accommodation that is self catering currently falls outside of the zoning licensing requirements, as elaborated above. They do not meet all of the necessary characteristics to be considered as part of an Empreendimento Turístico.
Self catering
Self catering is the term used to refer to self contained holiday accommodation where there are normally no service elements during the time of the guests’ stay. By contrast, there are facilities for guests to prepare their own meals and meet their own needs. Generally, all necessary equipment, including kitchen and dining utensils, bedding and towels are provided.
Self catering differs from serviced accommodation like hotels, guest houses, and bed and breakfasts by offering a self contained home away from home. In most cases, there is exclusive access to the accommodation and no sharing of communal space with other guests.
Most importantly, there is no ongoing cleaning service as well as no regular staff presence available. It is typical to rent self catering by the week (seven nights), although some properties now offer shorter lets.
euroFINESCOs.a. – for consultations in the Algarve call 289 561 333; in Lisbon call 213 424 210; Mobile 969 102 813; by e-mail: info@eurofinesco.com
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