Before you can go ahead and advertise your property, it must meet the conditions for an Alojamento Local (AL) Tourist Licence. You will need to submit an application at your local town hall, which may order an inspection of your property over the following thirty days to ensure all conditions are being met.
A licence-holder must also be registered as self-employed in Portugal in order to declare the rental income. You will need to complete a registration form and, when registered, the income must be reported online to the Tax Department and a yearly tax return must be submitted in Portugal – even if the rental income is remitted from outside Portugal.
Dealing with any tax office is generally complicated, let alone when doing so in a foreign language! Lagoa-based Sovereign - Consultoria Lda is able to assist with the whole process – from your AL Tourist Licence application, through to submitting the necessary tax and social security registrations and providing accounting services for your business activity.
Sovereign provides full assistance for an annual fee, which will cover the following services:
• Fiscal Representation;
• Tax Return preparation and filing;
• Online invoicing and monthly reports compliance;
• Accounts and bookkeeping.
Although the regulations and registrations might seem off-putting, most people end up paying less tax than under the previous regime because the tax is now based on a fixed amount of profit equal to 15% of your rental income. A flat tax rate of 25% is then applied to that 15% profit, which gives a final tax rate of 3.75% – instead of the 28% rate that was previously payable.
Whether you need help with obtaining an AL Licence, registering as a taxpayer, fulfilling your ongoing fiscal obligations, or if you are simply considering renting your property for the first time, contact Sovereign to ensure you are fully compliant for the year ahead.

For more information please telephone: 282340480, email: port@SovereignGroup.com or visit: www.SovereignGroup.com