New Laws and Taxes now apply if you are letting your property commercially in Portugal and as a result, you now have to have a commercial rental license also known locally as a "Licença de Alojamento Local” before you can officially let your property.
It is a fact that the private rental market in Portugal has not been regulated for many years; and both property owners, as well as property management companies, have been able to let properties without a great deal of interference from the Portuguese government. Now, however, both owners and agents need to apply for a government approved commercial letting license.
This legislation was passed because the government wants to ensure that the quality of properties being let to tenants and holidaymakers in Portugal meets minimum standards.
Especially in terms of quality of facilities and safety standards. Failure to meet those standards or failure to be licensed may result in fines ranging between two and a half thousand and twenty five thousand Euros. You may not let your property before being in possession of the appropriate permits and licenses.
Assuming that your property meets all the aforementioned conditions and that all documents and certificates are in order, the application process may begin. Applications must be submitted with all relevant documentation to the property rental-licensing department of your local council.
Documentation needed include the property owner's identification, the habitation license/certificate, approvals issued by the inspecting electrical, gas and fire officials, plans of the building itself as well as all the relevant tax and fiscal documentation.
There is no doubt that this license application is a trying process, and if you do not speak Portuguese it can be a real challenge. As a result it makes good business sense that you appoint the appropriate professionals or property management company to assist you in obtaining all the necessary licenses and approvals with the least effort, in the shortest amount of time possible and in a cost effective manner.