|Home| Info| Community| Business| Beaches| What to do?| Rentals| News| Forum| Blogs| Finance| History| FAQ| Contact|
Alojamento Local - Simplified regime
Alojamento Local - Simplified regime
I've always been taxed under the simplified regime. This year when I made my IRS declaration it correctly showed a taxable income of 2404 which is 35% of my gross income. However when I received my bill it was for 28% of the gross figure not the taxable income shown in the PDF. Has the simplified regime been removed? Or are there some new rules I'm not aware of? Thanks Sheila
Re: Alojamento Local - Simplified regime
This may be wide of the mark but is it possible that in order to avoid future CGT charges you have been assessed for tax as described below in a recent article on asset allocation for registered renters ?
“This issue of capital gains is one of the biggest obstacles to the legalisation of local accommodation,” said Eduardo Miranda, president of the Association of Local Accommodation in Portugal (ALEP), adding that some owners “keep the registration and do not cancel the activity,” just to avoid triggering a CGT charge which does not qualify for the usual 50% reduction, but is levied at 95% of the gain.
The little-known way around this is to register at Finanças under the category F tax regime where at flat rate 28% is charged but this may not be cost effective for many. A degree of specialist financial knowledge seems to be necessary in a market sector that should have clear rules and simple benefits for those who comply.
On the plus side, the recent amendments to the Alojamento Local registration system, that made it compulsory to gain the approval of other property owners if the property comes under ‘condominium rules’, are likely to be suspended until after the October 1st local elections - or may not be enacted at all.
The government has admitted that it did not bother to talk to everyone that could be affected by the law change and now is well aware that the proposed changes will not help its support at council level.
“This issue of capital gains is one of the biggest obstacles to the legalisation of local accommodation,” said Eduardo Miranda, president of the Association of Local Accommodation in Portugal (ALEP), adding that some owners “keep the registration and do not cancel the activity,” just to avoid triggering a CGT charge which does not qualify for the usual 50% reduction, but is levied at 95% of the gain.
The little-known way around this is to register at Finanças under the category F tax regime where at flat rate 28% is charged but this may not be cost effective for many. A degree of specialist financial knowledge seems to be necessary in a market sector that should have clear rules and simple benefits for those who comply.
On the plus side, the recent amendments to the Alojamento Local registration system, that made it compulsory to gain the approval of other property owners if the property comes under ‘condominium rules’, are likely to be suspended until after the October 1st local elections - or may not be enacted at all.
The government has admitted that it did not bother to talk to everyone that could be affected by the law change and now is well aware that the proposed changes will not help its support at council level.
Re: Alojamento Local - Simplified regime
no we have functioned under the simplified regime for the last five years and are still letting in the same way. we were considering not letting next year if they don't sort this out but does that mean we would have to pay capital gains? and what would it be based on? we are not in a condominium. we have a detached villa.