Self catering accommodation and licensing requirements – Part three: Owners, agents and holidaymakers
By: DENNIS SWING-GREENE
International Fiscal Consultant for euroFINESCO
financial@portugalresident.com
WHEN THE relationship is directly between the owner and the holidaymaker we define a landlord-tenant relationship. In this case, any agent acts merely as an outsource supplier to the owner for needed services.
Such an activity falls under the umbrella of the Regime de Arrendamento Urbano (RAU) and requires no special licensing, neither for the property (maintaining a licença de habitação), nor for the owner (as conventional landlord). Any specific licensing requirements for agents will depend on the nature of their respective business activity.
These self catering accommodations may be seen as either simple residential rents (rendimentos prediais under Category F of RAU) or as a commercial activity (empresário em nome individual under Category B of RAU), depending on the dimension of the business (i.e. only one or two units available as opposed to multiple-unit offerings).
Those engaged in the latter need to register their business activity with the Finanças (início de actividade).
When the business is conducted directly between the agent and the holidaymaker, we have a provider-customer relationship for tourist services. In this case, the owner simply furnishes the raw material and the agent acts as an intermediary.
These tourist services are governed by Decree Law 167/97 (and subsequent updates). Properties must be located within a designated Tourist Development Area (Empreendimento Turístico) and have the respective licensing (Moradia ou Apartamento Turísticos).
Likewise, the agent may need an activity-specific license to practice in this capacity. Estate agents, travel agents and tour operators must have the proper credentials and approval for conducting this type of business.
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
Do you have a view on this story? Email: editor@portugalresident.com
