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Property investor in Portugal

A property investor in Portugal chooses between long-term letting, taxed under category F, and Alojamento Local, taxed under category B with VAT obligations. For non-residents, running an AL has fallen under the standard VAT regime since 1 July 2025.

Your situation

You have bought, or are about to buy, a property in Portugal to generate income. How you operate it determines everything else.

Long-term letting or Alojamento Local?

Long-term Alojamento Local
IRS category F (property income) B (business income)
VAT Out of scope Applies, regime to be checked
Activity registration Not required Required
Registration Contract filed with the tax office AL registration with the council
Deductible costs Limited Broader
Management Light Intensive

The critical point for non-residents

Since 1 July 2025, a non-resident running an Alojamento Local no longer qualifies for the article 53 CIVA exemption: VAT is charged from the first euro and periodic returns are due.

Do not overlook

  • IMI, the annual Portuguese property tax, based on the rateable value.
  • AIMI, once your holdings exceed the applicable threshold.
  • Capital gains on resale: 50% of the gain is taxed at the general progressive IRS rates, under the same regime for residents and non-residents.
  • Modelo 30 on commissions paid to Airbnb and Booking.

The EA services for this situation

  • Alojamento Local accounting

    Accounting for an Alojamento Local costs €25 per month plus VAT and covers invoice checking, IVA, Modelo 30 and IRS. Activity registration (€40 plus VAT) and issuing receipts (€5 plus VAT each) are billed separately. Since 1 July 2025, non-residents operating an AL no longer qualify for the article 53 CIVA exemption and fall under the standard VAT regime.

  • Personal IRS returns

    An IRS return costs between €20 and €250 plus VAT depending on complexity: number of filers, types of income, income earned abroad and whether a double tax treaty applies. Both residents and non-residents are covered.

  • Mortgage

    EA Contabilidade does not carry out credit intermediation. We introduce you to an intermediary registered with the Banco de Portugal, who reviews your situation, compares offers and follows the file through to completion.

  • Concierge

    EA Contabilidade works with a network of concierge partners. When you pick your region in the form — Viana do Castelo, Braga, Porto, Lisbon or the Algarve — the request goes straight to that region's partner, copying EA.

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