Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified Portugal tax professional before filing.
Portugal · Short-term rental taxes
Short-Term Rental Taxes in Portugal
Income from Alojamento Local (AL) is taxed under Portuguese personal income tax (IRS) or corporate tax (IRC), with VAT potentially applying and municipal tourist taxes collected per night from guests.
The 30-Second Answer
- Register your property as Alojamento Local (AL) with the local council before accepting guests — no income threshold exempts you from declaring rental income to the Autoridade Tributária e Aduaneira (AT).
- Under the Simplified IRS Regime, only 35% of gross AL revenue is treated as taxable income; under Organised Accounting, you deduct real expenses and pay tax on actual profit.
- Short-term accommodation is subject to 6% VAT (IVA) — small operators below the annual exemption threshold may qualify for the VAT exemption regime; once exceeded, VAT must be charged and remitted.
- File your annual IRS Modelo 3 return (with Annex B or Annex F as applicable) between 1 April and 30 June of the year following the tax year; municipal tourist tax (taxa turística) is collected from guests and remitted separately to the municipality.
Deductions
What AL Hosts Can Deduct
Under Organised Accounting, real costs reduce your taxable profit; under the Simplified Regime, a flat 65% cost allowance is built in automatically.
Deductions above apply under the Organised Accounting regime. Under the Simplified IRS Regime, no itemised deductions are claimed — the 35% taxable coefficient already implies a 65% notional cost allowance. Keep all receipts and invoices for at least 10 years.
Filing Calendar
Key Dates & Filing Calendar
Portugal's tax year runs 1 January – 31 December; the IRS return covers the prior calendar year.
VAT (IVA) returns are filed quarterly or monthly depending on turnover; tourist tax is remitted to the municipality on a schedule set by each council (often monthly or quarterly).
Airbnb / PwC Portugal Tax Guide (Nov 2025), portaldasfinancas.gov.pt
Tax Regimes
Simplified IRS Regime vs. Organised Accounting
Portuguese AL hosts operating as individuals choose between a simplified flat-coefficient approach or full organised accounting — the right choice depends on your actual costs.
Simplified IRS Regime
Only 35% of gross revenue is taxable — no need to track every expense
- Taxable income = 35% × gross AL receipts; the remaining 65% is a notional cost allowance
- No itemised expense claims — simplifies record-keeping significantly
- Taxable amount is added to other income and taxed at progressive IRS rates (12.5%–48% for residents in 2025)
- Non-residents pay a flat 25% on Portuguese-source AL income
Annual gross AL revenue below ~€200,000 (threshold to remain in simplified regime)
Organised Accounting
Deduct every real cost and pay tax only on actual net profit
- All documented expenses (cleaning, utilities, commissions, depreciation, insurance, etc.) are deductible
- Requires a certified accountant (contabilista certificado) and formal bookkeeping
- Net profit taxed at progressive IRS rates (residents) or 25% flat (non-residents)
- More administrative burden but can yield lower tax if real costs are high
Mandatory above the simplified-regime revenue threshold; optional below it
Depreciation
Depreciation (Amortisation) for AL Properties
Under Organised Accounting, hosts can depreciate the building and qualifying assets over their useful lives using rates set by Portuguese tax law (Decreto Regulamentar n.º 25/2009).
| Asset | Typical write-off period | Notes |
|---|---|---|
| Residential building structure | 50 years (2% per year) | Land value is not depreciable; only the building component qualifies |
| Furniture & furnishings | 10 years (10% per year) | Beds, sofas, tables and similar items used in the AL unit |
| Appliances & equipment | 5–8 years (12.5%–20% per year) | White goods, air-conditioning units, kitchen appliances |
| IT & communications equipment | 3–5 years (20%–33% per year) | Smart TVs, routers, smart-lock systems used in the rental |
Depreciation is only claimable under Organised Accounting. Under the Simplified Regime, a notional 65% cost allowance replaces all itemised deductions including depreciation. Rates are governed by Decreto Regulamentar n.º 25/2009.
If you sell the property or withdraw it from AL use, accumulated depreciation may be subject to recapture and taxed as a capital gain. Withdrawing a property from AL for permanent residential use for at least 5 years may qualify for capital gains exemption under specific conditions.
Taxa Turística
Municipal Tourist Tax (Taxa Turística)
Around 40 of Portugal's 308 municipalities charge a per-person, per-night tourist tax on AL guests — rates and caps vary by city.
The tourist tax is paid by the guest, collected by the host, and remitted to the municipality. It is not income for the host. Key cities and their 2024–2025 rates are shown below — always verify the current rate with your local council.
Varies by municipality — €0 to €2.00 per person per night
Trippz.com Portugal tourist tax guide; individual municipal council websites
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| Direct booking | Host collects from guest at check-in/check-out and remits to municipality | Record tourist tax collected as a liability (not revenue); remit on the municipality's schedule |
| Airbnb booking (select cities) | Airbnb collects and remits on behalf of host in cities where it has an agreement | Airbnb handles remittance — confirm in your Airbnb account whether your city is covered |
| Booking.com / other OTAs | Host typically collects and remits unless OTA has a local agreement | Check your OTA contract; if no agreement, you are responsible for collection and remittance |
Children under 13 are generally exempt. Rates and caps are set by each municipality and can change annually. Always confirm the current rate with your local câmara municipal.
Platforms
How Airbnb, Booking.com & Others Report Your Income
Under EU DAC7 rules, platforms operating in Portugal must report host earnings to the Portuguese tax authority — your income is visible to the AT even if you forget to declare it.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | Yes — reports to AT under DAC7 from 2023 data onwards | Yes, in Lisbon and Porto (and expanding); check your city | Annual earnings summary available in your Airbnb account under Transaction History |
| Booking.com | Yes — reports to AT under DAC7 | Generally no — host collects and remits tourist tax directly | Annual earnings report available in the Booking.com extranet |
| VRBO / Vrbo | Yes — reports to AT under DAC7 | Generally no | Earnings history available in the owner dashboard |
Hosting on Multiple Platforms?
Each platform reports independently to the AT. You must aggregate all platform earnings and declare the total on your IRS Modelo 3 return. Mismatches between platform reports and your declared income are a known audit trigger — keep records from every channel.
EU DAC7 Reporting (from 2023)
Under EU Directive DAC7, digital platforms operating in Portugal must report the income earned by sellers/hosts to the Portuguese Autoridade Tributária e Aduaneira (AT) annually. This applies to Airbnb, Booking.com, VRBO and similar platforms. The AT may cross-reference platform reports with your IRS return — ensure your declared income matches.
Airbnb Portugal Tax Guide (Nov 2025); Airbnb help article on Portugal withholding tax (airbnb.com/help/article/3557)
Side-by-Side P&L Example
Illustrative example for a resident host earning €20,000 gross AL revenue with €8,000 in real expenses
Record-Keeping
Stay Audit-Ready: What to Keep and for How Long
Portuguese tax law requires hosts to retain documentation supporting their AL income and expenses; the AT can audit up to 4 years back (or longer in cases of fraud).
| Keep | How long | Why |
|---|---|---|
| Electronic receipts (recibos verdes) issued for each stay | 10 years | Mandatory proof of income declared; issued via Portal das Finanças |
| Platform earnings statements (Airbnb, Booking.com, etc.) | 10 years | Cross-reference with AT DAC7 reports; reconcile with IRS return |
| Invoices for all deductible expenses (cleaning, utilities, repairs, management) | 10 years | Required to substantiate deductions under Organised Accounting |
| AL licence (Registo Nacional de Alojamento Local — RNAL) documentation | Duration of activity + 5 years | Proof of legal registration; required for compliance inspections |
| Tourist tax collection and remittance records | 5 years | Municipal councils may audit tourist tax remittances independently |
| RFI-21 form and Airbnb Ireland UC tax residency certificate | Each fiscal year | Required to apply Portugal–Ireland double tax treaty relief on Airbnb service fees |
Portugal's general tax statute of limitations is 4 years, but can extend to 8 years in cases of tax evasion or fraud. Keeping records for 10 years is the safest practice for AL hosts.
Estimator
Rental Income Tax Estimator
Plug in your rental income and costs to see your likely tax bill.
Your Numbers
Total Alojamento Local income, before costs.
Real costs under organised accounting (or ~65% of gross to approximate the simplified 35% coefficient).
Your top progressive Portuguese IRS band.
Estimated tax owed
Income tax on your net AL profit at your IRS rate.
Illustrative estimate. A simplified model to orient you — it is not tax advice. Confirm your situation with a qualified local professional.
Sources & notes
This page is for educational purposes only and does not constitute tax or legal advice. Tax rules change — always verify current rates and deadlines with the Autoridade Tributária e Aduaneira (AT) or a qualified Portuguese tax professional (contabilista certificado).
- Airbnb / PwC — Portugal Tax Guide (Nov 2025) — assets.airbnb.com/help/Airbnb_TaxGuide2026_Portugal_ENGLISH.pdf — covers IRS filing deadlines, VAT, and DAC7 reporting obligations for AL hosts
- Autoridade Tributária e Aduaneira (AT) — Portal das Finanças — portaldasfinancas.gov.pt — official portal for filing IRS Modelo 3, issuing recibos verdes, and accessing tax assessments
- NEWCO — Short-term Rental in Portugal: Taxes and Benefits (2025) — newco.pro/en/resources/articles/short-term-rental-in-portugal-taxes-and-benefits — covers simplified vs. organised accounting, VAT, and regional rate reductions
- AirNest REIM — Rental Income Tax Guide for 2025 — airnest-reim.com/resources/rental-income-tax-guide-for-2025 — 2025 IRS brackets, non-resident flat rates, and corporate vs. personal ownership comparison
- Airbnb — Important tax information for hosts in Portugal — airbnb.com/help/article/3557 — RFI-21 form and Portugal–Ireland double tax treaty relief on service fees
- Trippz — Tourist tax in Portugal: a complete guide — trippz.com/tourist-tax/portugal — municipal tourist tax rates for Lisbon, Porto, Cascais, Sintra, Albufeira and other municipalities
- BMY Guest — How much tax do you pay on a short-term rental in Portugal? (2026) — bmyguest.pt/blog/short-term-rental-taxes-portugal/ — simplified regime 35% coefficient, VAT at 6%, and Lisbon tourist tax overview
- Tytle.io — Rental Income Tax Rules in Portugal for Non-Resident Landlords (2026) — tytle.io/en/pt/blog/rental-income-tax-rules-in-portugal-for-non-resident-landlords — non-resident flat rate, tax residency rules, and AT reporting
- EazyAL — The Ultimate 2026 Guide for Airbnb & Short-Term Rental Hosts in Portugal — eazyal.com/blog/the-ultimate-2026-guide-for-airbnb-short-term-rental-hosts-in-portugal — SIBA, INE reporting, municipal restrictions, and compliance deadlines
Questions
Frequently Asked Questions — Portugal AL Taxes
Mr Props Team
Property & Short-Term Rental Tax specialists
Make Tax Season a Non-Event
Mr. Props tracks your STR income, expenses and remittances all year, so your Portugal filing is ready to file instead of reconstructed in a panic.
Join Hosts Running Smarter Portfolios
Monthly tactics on STR tax, pricing and operations — written for operators, not accountants.
No spam. Unsubscribe anytime.