AIRBNB HOST IN PORTUGAL - I RENT MY HOUSE TO GUESTS, DO I NEED TO DECLARE IT AS AN INCOME??

[Xrysw0]

Hey there, I am a new host and I will start renting my whole appartment(or a room occasionaly) in airbnb guests because I live with my bf now, for most of the time.

My appartment is in Portugal , Lisbon and I don't know if I need to declare that income in the Portuguese taxation agency. 

I work here, I am a european citizen, I have my VAT number and pay my taxes as I have to.

My appartment has a contract under my name(there is a clause in my contract stating clearly that I can subrented if I want to) but since I am spending most of my time in my bf house I have decided to be an airbnb host. But I can not find out what I should do concerning the tax declaration of this income when I communicate with the local taxation department.

Do I need to declare it as an income(since airbnb is generating the invoices and not me-I am a physical person not a company)or I just receive the money? and if yes, do I need to have a VAT number like a company of some short or I use my personal VAT ? But if yes , how am I supposed to declare it since I am not the owner of the house and the owner is already paying the taxes for owning the house and for renting it to me?

Please, if someone would be kind enough to enlighten me and consult me, because I don't want to do anything illegal by mistake or avoid paying the taxes as I'm supposed too!!

Cheers from Lisbon 🙂

[Rachael26 · Accepted solution]

I am surprised that your rental contract allows subletting - but assuming that it does - any normal lease agreement would stipulate that the owner approve any subletting and that you should get their written permission to do so.

i do not believe that any owner would approve of their tenant renting out the apartment to unapproved people - especially as you will not even be present.

tell me if it was your hard earned money that bought the apartment - would you want this done? And have you thought about who will be blamed for any damage or theft? It will be you as the legal tenant.

my advice to you is to do more research and  and get written permission from the owner.... and then think about it all again.

best wishes 

[Helen3]

I agree with @Rachael26 do get written permission from your landlord. There is a difference between sub letting to a house mate and running a business doing short term lets.

Make sure you have insurance covering short term lets, you put in place measures to protect the property and that you collect the local tourist tax.

[Marianne115]

Hello Xyrsw,

Did anyone ever answer your questions?

I am helping my parents to host out their guest house in Portugal and I have the same questions.

If you did get some answers?

If you did, can you please answer the same questions for me or can you direct me in the right direction?

Kindly,

M 

[Mark629]

Hi There

My name is Mark and I noticed your message. I am looking to buy property in Portugal as an investment and to rent out this propoerty before I retire in Portugal. In my case I must declare the income in my country of residence AND probably also declare income in Portugal.

I would think any EU citizen renting out a property must declare this as income in their country of residence. You should budget in your rental to cover the cost of taxes. If you find out what your taxes are please let me know

BTW: do you know anyone who you could recommend as a host to take care of my appartment and the guests. While airbnb arranges I prefer to meet the host personally.

Good luck!

Mark

[Christoffer6]

Hi Mark, 

I hope you are well. I saw your comment in the "I RENT MY HOUSE TO GUESTS, DO I NEED TO DECLARE IT AS AN INCOME??" discussion group and wanted to reach out to let you know that I run a small short term rental agency where I assist homeowners in Portugal in renting out their property when they are not using it. I also assist potential buyers in sourcing properties here in Portugal, so if you feel like you need any guidance please let me know and we can discuss outside this forum. Please email if you are keen to dicuss any further, I have to spell out my email as airbnb sometimes doenst allow for email addresses. christoff at airffortless dot com. 

[Sueli16]

I have someone that looks after my apartment, but is in Armacao de Pera, she will not go another areas.

About taxes, everyone now needs to register with Alojamento Local, and declare their earnings every year. 

Up to 10.000 euros per year you pay tax only, after that you will pay vat too... I believe 6%... 

You will need to register in the tax office, Financas, get a tax number from them (register your bussiness) and after you get your tax number you need to register it at the Alojamento Local where your rental property is.

[Fabio619]

Hi there 

so if you own the property and rent on air bnb. I believe they take the VAT automatically. 

After 10 000 I need to go to finances to declare the extra earnings is this correct ? 

Thanks 

fabio 

[Noora9]

Hello,  my name is Noora and I’m planning to register one listing in Amadora this February, the apartment belongs to my uncle but  i will be the one to manage it fully, before I go further can you please tell me each step to do the registration 

thank you for your reply

[Laila47]

Hello Mark. I was just reading your message and would like to introduce myself.

My name is Laila Linuza, lived in Ireland most of my life.

For 3 years I was looking after my friends apartment, as airbnb host. 

Was cleaning and taking care of guests.

Myself and my daughter, we were renting little room with someone else. 

Since the law in Barcelona has changed, I am planning to move to Portugal.

I have been airbnb host in Dublin, Ireland for few years.

If you are based in Lisbon, would like to offer my service.

Thank you!

[Fion1]

Good Day Mark,

This is Fion greetings from Macau, I used to run my own Airbnb here so i got a lot expericence on running an Airbnb, and I very would like to work as a hostel / Airbnb host and live in Lisbon, also I can speak not only English but also Cantonese , mandarin to help you enlarge tourists market not only from English speaking countires but also from Asia , HongKong ,Macau and China.

If you still looking for a suitable person to take that , let's talk more and idea details.

**[E-mail address hidden due to safety reasons - Community Center Guidelines]

Looking forward to hear from you

Wishes!

Fion

[Andrea2427]

Dear Mark, 

I am also looking for a place to buy as an investment in Portugal. Have managed to find out the information regarding the taxes and how did you manage the question with the host? 

Thank you 

Andrew

[Joana253]

Hello! I just stumbled upon this post and I’m also unclear. I have a property in a rural area in Portugal where my mum lives and she's keen to become a host but just for the one bedroom. The property is mine and I'm a UK resident. I understand I have to register as alojamento local. With regards to tax do I have to set up to pay tax in Portugal or do I pay in the UK? This small venture is likely to be less than €10k a year so I'm unsure what exemptions I may have. I look forward to getting some clarity on this, thanks!

[Cor3]

Hi @Joana253,

The word is indeed: “Alojamento Local”.

And yes, you have to report your rental income to the authorities in Portugal and pay tax on it, in Portugal (In this case, you will not pay tax on this income in the UK).

Tax-rate in Portugal: 8,75% of the gross rental income (you will get some discounts in the first years, to build your ‘rental business’).

When your gross rental income, is less than € 10k annually, you will be exempt from VAT, Etc.

[Joana253]

Thank you for your swift reply. Do I need to open a limited company in Portugal in that case? Does it change anything if it’s only a bedroom rather than a whole property? Thanks!