Possible New Rental Rules in Portugal and Their Impact
Thanks for another well-researched article. I hope you're right about the possible increase in long-term furnished rentals. We had real problems finding apartments to rent in Porto and Lisbon/Cascais. Your points about the tax inequity are spot on. It should be no surprise that the short-term rentals increased when they were effectively incentivized by the lower tax rate. Anticipating the unintended consequences is something that legislators around the world seem unable to do well.
Excellent post. Love getting into the nitty gritty details of this. Also, I love your digressions, in this case DeSantis. Clearly you have not stopped following the news in the country you left behind because of the big right turn it took in 2016. You made a good decision then.
It will be interesting to see if the prices start to shift in the condo market due to this new ruling.
AirB&B's have been a serious problem everywhere. These units are often unlicensed, located in residential neighborhoods unaccustomed to such visitors, attract some who have no consideration for their neighbors regarding noise, traffic an parking. Many municipalities are struggling to come up with rules and regs to manage the impact of these "pop up" accommodations on their communities.
Having a coffee in the VRSA plaza when your email popped up! Timely experience!😎
Good news. I am sad to see the destruction of communities world wide from over use of AirBnB. Boise has been negatively effected by this. It's nearly impossible to find a reasonably priced apartment here now. And when I finally make the leap, I shall look forward to benefitting from this new ruling. I commend the Portuguese government for considering the larger social picture over immediate individual, personal benefit.
Another useful article! I’m arrived in Tavira yesterday and am slowly heading your way.
See the Pickle ball comments any similar options for ping pong?
Can you suggest someone to contact for long term rentals in the VRSA area. We wanted to look at the possibility of D7 visa.
I have to agree, Airbnb is destroying neighborhoods all over the world. The uber rich can buy 10 properties, then oursouce the labor to shady companies who provide poor service and rip off customers. These homes could be used for locals. Or even for individuals to make some income, but its gone way too far. I hope the ban them all entirely. Hotels are now better value anyway.
I hope you don´t be upset with my comment but I must disagree concerning the tax matter. Actually, it´s not correct to compare short and long term rentals because they are different. On this one you do not have any obligations than keeping the building suitable to be livable. On the other one, besides that, you have to pay the bills of water, eletricity, gaz, internet and assure that the house/flat is clean to receive the guests. So, taking that in account, believe me, it´s fair that there is a inferior tax rate for de short term rental. In my opinion, the solution for the lack of long term rental can not be banning the legal short term one.
Nevertheless, I enjoy reading your texts and wish you all the best!
VRSA is small, hence there aren’t as many accommodations there.
I find it strange that an investment property is categorized the same as a primary residence. Someone buying or renting properties for Airbnb only is one thing. A person renting out where they live is another. The former will definitely take away from the long term rental market. The latter would not. These laws need some common sense.