Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified Portugal tax professional before filing.
Porto · Portugal · Short-term rental taxes
Short-Term Rental Taxes in Porto, Portugal
STR income in Porto is taxed under Portugal's personal income tax (IRS) or corporate tax (IRC), with a mandatory €3-per-person-per-night municipal Tourist Tax collected on top.
The 30-Second Answer
- All STR income must be declared to the Autoridade Tributária e Aduaneira (AT) — there is no minimum threshold below which rental income is exempt.
- Individuals choose between the Simplified Regime (only 35% of gross revenue is taxable) or Organised Accounting (deduct real expenses); income is then taxed at progressive IRS rates (12.5%–48%) or a flat 25% for non-residents.
- Porto charges a Taxa Municipal Turística of €3 per person per night, capped at 7 nights; Airbnb collects and remits this tax automatically for Porto listings.
- The annual IRS Modelo 3 return must be filed electronically via Portal das Finanças between 1 April and 30 June of the year following the income year.
Deductions
What Porto STR Hosts Can Deduct
Under Organised Accounting, hosts can offset real, documented costs against gross rental income before calculating tax.
Under the Simplified Regime, no itemised deductions are claimed — the AT automatically treats 65% of gross revenue as non-taxable costs. Organised Accounting requires a certified accountant (contabilista certificado) and allows full deduction of documented expenses.
Filing Calendar
Key Dates & Filing Calendar
Portugal's tax year runs 1 January – 31 December; the IRS return covers the prior calendar year.
Tourist Tax (Taxa Municipal Turística) collected from guests must be remitted to the Câmara Municipal do Porto on a periodic basis — if you collect it yourself rather than through a platform, check the municipality's remittance schedule.
Airbnb / PwC Portugal Tax Guide (2018); Portal das Finanças — www.portaldasfinancas.gov.pt
Income Tax Regimes
Simplified Regime vs. Organised Accounting — Which Applies to You?
Portuguese individual hosts operating under Category B (self-employment / business activity) choose between two regimes; the right choice depends on your actual expense ratio and gross revenue.
Simplified Regime
Flat 35% taxable coefficient — no receipts needed
- The AT automatically treats only 35% of gross STR revenue as taxable income — no need to itemise expenses.
- Taxable amount is added to other income and taxed at progressive IRS rates (12.5%–48%) for residents, or a flat 25% for non-residents.
- Minimal record-keeping required; no certified accountant mandatory.
- Cannot deduct actual costs — if real expenses exceed 65% of revenue, Organised Accounting may be better.
Available while annual gross revenue stays below the VAT exemption threshold (currently €14,500 for 2025, subject to change)
Organised Accounting
Deduct every real cost — taxed on actual net profit
- All legitimate, documented expenses are deducted from gross revenue to arrive at actual net profit.
- Net profit is taxed at progressive IRS rates (residents) or flat 25% (non-residents).
- Requires a contabilista certificado (certified accountant) — adds professional fees but can yield significant tax savings.
- Depreciation of the property and furnishings is deductible, reducing taxable profit further.
Mandatory once gross revenue exceeds the simplified-regime threshold; also available by election below it
Depreciation
Depreciation (Amortisation) for Porto STR Properties
Under Organised Accounting, hosts can write off the cost of the building and furnishings over time, reducing taxable profit each year.
| Asset | Typical write-off period | Notes |
|---|---|---|
| Residential building structure | 50 years (2% per year) | Only the building value is depreciable — land is not. Use the acquisition cost minus land value. |
| Furniture & fittings | 10 years (10% per year) | Beds, sofas, tables and similar items used in the STR activity. |
| Appliances & electronics | 5–8 years (12.5%–20% per year) | Washing machines, TVs, air-conditioning units, etc. |
| Renovation works | Typically 10 years (10% per year) | Major refurbishment costs capitalised and amortised; minor repairs expensed immediately. |
Depreciation rates follow the Portuguese tax authority's official tables (Decreto Regulamentar n.º 25/2009). Only assets used in the STR business activity qualify. A certified accountant should confirm the applicable rates for your specific assets.
When a property is sold, accumulated depreciation may be recaptured and subject to capital gains tax (IRS Categoria G). Seek professional advice before selling a depreciated STR property.
Taxa Municipal Turística
Porto's Tourist Tax — €3 Per Person Per Night
Porto levies a mandatory municipal tourist tax on all overnight stays in paid accommodation, including Alojamento Local (AL) short-term rentals.
The Taxa Municipal Turística is charged to guests — not to hosts — but hosts (or platforms) are responsible for collecting and remitting it. Airbnb collects and remits this tax automatically for Porto listings.
€3.00 / person / night (max €21 per person per stay)
Airbnb Occupancy Tax Help — Porto (airbnb.com/help/article/2290); Câmara Municipal do Porto — www.cm-porto.pt
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| Airbnb booking | Airbnb collects from guest and remits to Porto municipality automatically | Tax does not flow through your bank account; no action needed, but keep Airbnb statements as proof |
| Direct booking or other OTA | Host collects from guest at check-in/check-out and remits to Câmara Municipal do Porto | Record the tax separately in your accounts; it is not your income — it is a pass-through liability |
Children under 13 are exempt from the tourist tax. The tax applies per person per night, not per room. Rates are set by the municipality and may be updated — always verify the current rate with the Câmara Municipal do Porto.
Platforms
How Airbnb & Other Platforms Handle Tax in Porto
Under EU DAC7 rules, platforms must report host earnings to tax authorities — assume your income is already known to the AT.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | Yes — reports to Portuguese AT under DAC7 from 2024 onwards | Yes — collects & remits Porto Tourist Tax (€3/person/night) | Annual earnings summary available in your Airbnb account under Transaction History |
| Booking.com | Yes — DAC7 reporting applies | No — host is responsible for collecting and remitting Porto Tourist Tax | Annual payment summary available in the Booking.com extranet |
| VRBO / Vrbo | Yes — DAC7 reporting applies | No — host is responsible for collecting and remitting Porto Tourist Tax | Annual earnings report available in the VRBO owner dashboard |
Hosting on Multiple Platforms?
Add up gross income from all platforms before choosing your tax regime — the simplified regime threshold applies to total annual gross revenue across all sources. Keep separate records per platform to reconcile your Modelo 3 filing accurately.
EU DAC7 Reporting — What It Means for Porto Hosts
Since 1 January 2024, EU Directive DAC7 requires platforms like Airbnb and Booking.com to report each host's annual earnings and personal details directly to the Portuguese tax authority (AT). Your STR income is visible to the AT even if you do not file — always declare it.
Airbnb Help — Occupancy Tax Porto (airbnb.com/help/article/2290); Airbnb Help — Portugal Withholding Tax (airbnb.com/help/article/3557); EU DAC7 Directive 2021/514
Side-by-Side P&L Example
Illustrative Porto STR earning €20,000/year gross. Resident host, mid-bracket IRS rate ~28% assumed for illustration only.
Record-Keeping
Stay Audit-Ready: What Porto STR Hosts Must Keep
Portugal's AT can audit up to 4 years back (10 years in cases of fraud). Keep organised digital and paper records from day one.
| Keep | How long | Why |
|---|---|---|
| Booking records & guest invoices (recibos verdes) | Minimum 4 years | Proves gross income declared on Modelo 3 matches actual receipts |
| Expense receipts (cleaning, utilities, repairs, commissions) | Minimum 4 years | Required to substantiate deductions under Organised Accounting |
| Platform annual earnings statements (Airbnb, Booking.com, etc.) | Minimum 4 years | Cross-references DAC7 data reported to AT; reconciles your return |
| Tourist Tax collection & remittance records | Minimum 4 years | Demonstrates correct collection and remittance to Câmara Municipal do Porto |
| AL licence (Alojamento Local registration) and renewal documents | For the life of the activity | Operating without a valid AL licence is illegal and can result in fines |
| Property purchase deed, renovation invoices (for depreciation) | Life of ownership + 4 years after sale | Supports depreciation calculations and capital gains computation on eventual sale |
All receipts issued for STR income must be issued as recibos verdes (green receipts) through the Portal das Finanças — paper-only receipts are not accepted by the AT.
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 thresholds with the Autoridade Tributária e Aduaneira (AT) or a qualified Portuguese tax professional before filing.
- Airbnb — Occupancy Tax Collection & Remittance in Portugal — Confirms Porto Tourist Tax rate of €3/person/night, 7-night cap, and Airbnb's collection/remittance role. airbnb.com/help/article/2290
- Airbnb — Important Tax Information for Hosts in Portugal — Covers withholding tax obligations, Form RFI-21, and double taxation treaty with Ireland. airbnb.com/help/article/3557
- Airbnb / PwC — Tax Considerations on Short-Term Lettings Portugal (2018) — Outlines IRS filing deadlines (1 April – 30 June), Portal das Finanças e-filing, and AT assessment timeline.
- Airnest REIM — Rental Income Tax Guide for 2025 — Details 2025 IRS progressive brackets (12.5%–48%), non-resident flat rate, and regime options. airnest-reim.com
- BMyGuest — Short-Term Rental Taxes Portugal (2026) — Confirms 35% taxable coefficient under Simplified Regime and deductible expense categories under Organised Accounting. bmyguest.pt
- HTJ Tax — Tax on Rentals in Portugal (updated Dec 2024) — Confirms 25% flat rate for non-residents and progressive aggregation option for residents. htj.tax
- Tytle.io — Rental Income Tax Rules in Portugal for Non-Resident Landlords (2026) — Confirms non-resident flat 25% rate and AT reporting obligations. tytle.io
- EazyAL — 2026 Guide for Airbnb Hosts in Portugal — Covers SIBA compliance, INE reporting, and municipal tourist tax obligations. eazyal.com
- Trippz — Tourist Tax in Portugal — Confirms Porto is among the 40 municipalities with a tourist tax. trippz.com/tourist-tax/portugal
- Portal das Finanças — Autoridade Tributária e Aduaneira — Official Portuguese tax authority portal for e-filing, recibos verdes, and tax assessments. portaldasfinancas.gov.pt
Questions
Frequently Asked Questions — Porto STR Taxes
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