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VAT on Alojamento Local — what changed for non-residents

Since 1 July 2025, a non-resident running an Alojamento Local in Portugal can no longer use the article 53 CIVA VAT exemption. They fall under the standard regime from the first euro invoiced: VAT on every stay, periodic returns, certified invoicing. Residents remain subject to the usual threshold rules.

Who exactly is affected?

The change targets non-resident taxable persons. In plain terms: you own a property in Portugal, you run it as an Alojamento Local, and your tax residence is somewhere else.

If you are a Portuguese tax resident, this article changes nothing for you: the usual threshold rules still apply.

What article 53 used to say

Article 53 CIVA is the small-taxpayer exemption. Below a given turnover you do not charge VAT and you do not file periodic returns. Plenty of owners with one or two AL apartments sat inside that regime.

What applies since 1 July 2025

Non-residents can no longer rely on it. They move to the standard VAT regime, from the first euro invoiced.

Before Since 1 July 2025
VAT on stays No, below the threshold Yes, from the first euro
Periodic returns No Yes
Certified invoicing Light-touch Required
Turnover threshold Applied No longer relevant

Three practical consequences

1. Your net prices change. If you advertised €100 a night with no VAT, that same night now has to include VAT. Either you raise the advertised price or you absorb the difference in your margin. That is a commercial decision, not an accounting detail.

2. You enter a filing rhythm. Periodic VAT returns, monthly or quarterly depending on your situation. These are hard deadlines, with late penalties.

3. Platform commissions become visible. Airbnb and Booking take their commission directly, before paying you the balance. Those are payments to non-resident entities: they trigger the Modelo 30 filing and may require a VAT reverse charge.

What to check now

  • Is your Alojamento Local registration with the council up to date?
  • Is your activity registered with the tax office under the right code?
  • Is your invoicing tool certified by the tax authority?
  • Have you filed the Modelo 30 forms for commissions already paid?

That last point causes the most trouble, precisely because the commission never appears as a payment leaving your bank account.

What support costs

Alojamento Local accounting at EA Contabilidade is €25 per month plus VAT: activity registration, invoicing, VAT, Modelo 30 and IRS. Managing bookings is not included.

Official sources

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