Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified Portugal tax professional before filing.
Lisbon · Portugal · Short-term rental taxes
Short-Term Rental Taxes in Lisbon, Portugal
Income from Alojamento Local (AL) in Lisbon is taxed under Portugal's personal income tax (IRS) via either the Simplified Regime or Organised Accounting, plus a €4-per-person-per-night municipal tourist tax collected by Airbnb on your behalf.
The 30-Second Answer
- Register your property as Alojamento Local (AL) with the national RNAL system before taking any bookings — Lisbon's parishes increasingly cap new registrations, so check your address first.
- Declare rental income on your annual IRS (Modelo 3) return: under the Simplified Regime only 35% of gross AL revenue is treated as taxable income; under Organised Accounting you deduct real expenses instead.
- Lisbon charges a municipal tourist tax (Taxa Municipal Turística) of €4 per person per night (capped at 7 nights per stay); Airbnb collects and remits this automatically for listings on its platform.
- Short-term accommodation services are subject to 6% VAT (IVA) — small operators below the annual exemption threshold may qualify for the VAT exemption regime (artigo 53.º CIVA), but once you exceed it you must charge and remit VAT quarterly.
Deductions
What Lisbon AL Hosts Can Deduct
Under Organised Accounting you deduct real, documented costs; under the Simplified Regime a flat 65% cost allowance is built in automatically — no receipts needed for that portion.
Deductions above apply under the Organised Accounting regime. Under the Simplified Regime, 65% of gross revenue is automatically disallowed as a deemed cost — you cannot add extra deductions on top. Keep all invoices and receipts for at least 10 years in case of an AT audit.
Filing Calendar
Key Dates & Filing Calendar
Portugal's tax year runs January–December; the IRS return is filed the following spring. Missing deadlines triggers automatic penalties.
Foreign guests must be registered in the SIBA portal within 3 working days of check-in. Late registration can result in fines and jeopardise your AL licence.
Autoridade Tributária e Aduaneira (AT) — IRS filing deadlines; EazyAL 2026 AL Compliance Guide (eazyal.com, 2026)
Tax Regimes
Simplified Regime vs. Organised Accounting — Which Fits Your AL?
Portuguese AL hosts operating as individuals choose between two IRS regimes. The right choice depends on your actual costs relative to gross revenue.
Simplified Regime (Regime Simplificado)
Flat 35% taxable — no receipts required
- Only 35% of gross AL revenue is treated as taxable income — the other 65% is automatically excluded as a deemed cost allowance.
- No need to track or prove individual expenses; the AT applies the coefficient automatically.
- Taxable amount is then subject to your progressive IRS bracket (12.5%–48% for residents, or 25% flat for non-residents).
- Cannot be combined with additional expense deductions — the 65% exclusion is the entire cost allowance.
Annual gross AL revenue below €200,000
Organised Accounting (Contabilidade Organizada)
Deduct real costs — ideal when expenses are high
- All legitimate, documented business expenses are deductible against gross revenue — cleaning, platform fees, repairs, depreciation, insurance, IMI, and more.
- Requires a certified accountant (Técnico Oficial de Contas) and formal bookkeeping — adds cost and complexity.
- Can produce a lower tax bill than the Simplified Regime when real expenses exceed 65% of revenue.
- Mandatory for hosts whose annual AL gross revenue exceeds €200,000.
Mandatory above €200,000 gross revenue; optional below
Depreciation
Depreciation (Amortização) for Lisbon AL Properties
Under Organised Accounting, the building structure and qualifying assets can be depreciated annually, reducing taxable profit. Land is never depreciable.
| Asset | Typical write-off period | Notes |
|---|---|---|
| Residential building structure | 50 years (2% per year) | Applies to the building value only — exclude land, which is not depreciable. Use the acquisition cost or assessed value as the base. |
| Furniture & furnishings | 10 years (10% per year) | Beds, sofas, tables and other movable items used in the AL. Keep purchase invoices. |
| Appliances & equipment | 5–8 years (12.5%–20% per year) | Washing machines, air-conditioning units, kitchen appliances. Rates set by Portaria 467/2010. |
| Renovation works (obras) | Typically 10 years (10% per year) | Major refurbishments capitalised and depreciated; minor repairs expensed immediately. |
Depreciation rates for Portuguese assets are governed by Portaria 467/2010. Only available under Organised Accounting — not applicable under the Simplified Regime. Consult a Técnico Oficial de Contas to confirm the correct base value and rate for your property.
If you sell the property after claiming depreciation, the AT may treat the accumulated depreciation as a gain subject to capital gains tax (Mais-Valias). Withdrawing the property from AL use for permanent residence for 5 years may qualify for a capital gains exemption.
Taxa Municipal Turística
Lisbon's Municipal Tourist Tax
Lisbon charges guests a nightly tourist tax per person. Hosts (or platforms) collect it and remit it to the Câmara Municipal de Lisboa.
The Taxa Municipal Turística is a guest-borne charge — it is not your income and should not be included in your IRS taxable revenue. It is collected per person per night, capped at 7 nights per stay.
€4.00 per person per night (max €28 per person per stay)
Airbnb Help Centre — Occupancy tax collection and remittance by Airbnb in Portugal (airbnb.com/help/article/2290, 2024); Câmara Municipal de Lisboa (cm-lisboa.pt)
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| Airbnb booking | Airbnb collects from the guest at checkout and remits directly to the Câmara Municipal de Lisboa | You receive no tourist-tax funds and have no remittance obligation for Airbnb bookings — do not include it in your IRS income |
| Booking.com or direct booking | Host collects from the guest and remits to the municipality | You must collect €4 per person per night, keep records, and transfer the funds to the Câmara Municipal de Lisboa per their schedule |
Certain guests may be exempt or qualify for a reduced rate (e.g. guests with disabilities). Check the Câmara Municipal de Lisboa website for the current exemption list. The tourist tax is not subject to VAT.
Platforms
How Airbnb & Booking.com Handle Tax in Lisbon
Platforms have different obligations for income reporting and tourist-tax remittance — know what each one does so you can fill the gaps.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | Reports host income to the Portuguese AT under EU DAC7 rules (from 2023 data onwards) | Yes — collects and remits Lisbon's €4/person/night tourist tax automatically | Annual earnings summary available in your Airbnb account under 'Transaction History'; also issues DAC7 income report |
| Booking.com | Reports host income to the AT under DAC7 rules | No — host must collect and remit the tourist tax directly to the Câmara Municipal de Lisboa | Annual earnings summary available in the Booking.com extranet under 'Finance' |
| Direct bookings | Not reported by any platform — host must declare all income on Modelo 3 | No — host collects and remits tourist tax directly | Host must maintain own records; issue recibos verdes via the AT portal for each stay |
Using Multiple Platforms?
Add up gross revenue from all platforms and direct bookings before applying your chosen IRS regime. The AT receives DAC7 data from Airbnb and Booking.com independently — your declared total must match or exceed what the platforms report, or you risk an audit query.
EU DAC7 Reporting (from 2023 onwards)
Under EU Directive DAC7, digital platforms operating in the EU must report the income of sellers (including AL hosts) to national tax authorities annually. Airbnb and Booking.com share your earnings data with the Portuguese Autoridade Tributária e Aduaneira (AT). This means the AT already has a record of your platform income before you file your IRS return — accurate declaration is essential.
Airbnb Help Centre — Important tax information for Airbnb hosts in Portugal (airbnb.com/help/article/3557); Airbnb Help Centre — Occupancy tax collection in Portugal (airbnb.com/help/article/2290)
Example P&L: Simplified vs. Organised Accounting
Illustrative Lisbon AL property earning €20,000 gross per year with €9,000 in documented expenses. Figures are educational only.
Audit Readiness
Records to Keep for an AT Audit
The Autoridade Tributária e Aduaneira (AT) can audit AL hosts up to 10 years back. Organised, digital records are your best defence.
| Keep | How long | Why |
|---|---|---|
| All recibos verdes (electronic receipts) issued via the AT portal | 10 years | Primary proof of declared income; AT cross-references these against platform DAC7 reports |
| Platform earnings statements (Airbnb, Booking.com transaction histories) | 10 years | AT receives DAC7 data — your records must reconcile with platform figures |
| Invoices for all deductible expenses (cleaning, repairs, management, utilities) | 10 years | Required to substantiate deductions under Organised Accounting; must be valid Portuguese fiscal invoices (faturas) |
| SIBA guest registration records and INE monthly reports | 5 years minimum | Compliance with AL licence conditions; SEF/AIMA and municipal inspectors can request these |
| Tourist tax collection records (for non-Airbnb bookings) | 5 years | Proof that you collected and remitted the Lisbon municipal tourist tax correctly |
Store records digitally in a secure, backed-up location. The AT's e-fatura system already holds copies of invoices issued to you by VAT-registered suppliers — but you still need your own organised archive for cross-referencing.
Estimator
Short-Term Rental Tax Estimator
Plug in your bookings and costs to see your likely taxable position.
Your Numbers
Total short-term-rental income, before costs.
Allowable running costs, mortgage interest, depreciation and platform fees.
Your top income-tax band, as a percentage.
Estimated tax owed
Income tax on your net rental profit at your marginal 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, legal or financial advice. Tax rules change frequently — always verify current rates and thresholds with the Autoridade Tributária e Aduaneira (AT) or a qualified Técnico Oficial de Contas before making decisions.
- Airbnb Help Centre — Occupancy tax collection and remittance by Airbnb in Portugal — Confirms Lisbon tourist tax rate of €4 per person per night, capped at 7 nights. airbnb.com/help/article/2290
- Airbnb Help Centre — Important tax information for Airbnb hosts in Portugal — Explains withholding tax obligations, Form RFI-21 and the Portugal–Ireland double tax treaty. airbnb.com/help/article/3557
- NEWCO — Short-term Rental in Portugal: Taxes and Benefits (2025) — Confirms 35% taxable coefficient under the Simplified Regime, 6% VAT on AL accommodation, and capital gains exemption conditions. newco.pro, 2025
- bmyguest.pt — How much tax do you pay on a short-term rental in Portugal? (2026) — Confirms Simplified Regime 35% taxable income rule, deductible expenses under Organised Accounting, and Lisbon tourist tax overview. bmyguest.pt, 2026
- airnest-reim.com — Rental Income Tax Guide for 2025 — Provides 2025 IRS progressive rate table (12.5%–48%), non-resident flat rates, and VAT treatment of AL income. airnest-reim.com, 2025
- EazyAL — The Ultimate 2026 Guide for Airbnb & Short-Term Rental Hosts in Portugal — Covers SIBA 3-working-day registration window, INE monthly reporting, municipal containment zones in Lisbon, and DAC7 platform reporting. eazyal.com, 2026
- Your Overseas Home — Short-term rental rules in Portugal 2026 — Covers Decreto-Lei 76/2024 licensing framework, Lisbon containment zones (December 2025), and EU Regulation 2024/1028 platform verification rules. youroverseashome.com, 2026
- portutax.com — Rental Income Tax in Portugal: A Complete Guide for Landlords (2025) — IRS progressive brackets, deductible expenses for residents, and filing obligations. portutax.com, 2025
- Autoridade Tributária e Aduaneira (AT) — Portal das Finanças — Official Portuguese tax authority portal for IRS Modelo 3 filing, recibos verdes, and VAT returns. portaldasfinancas.gov.pt
Questions
Frequently Asked Questions — Lisbon AL Tax
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