12/06/2026
Alojamento Local and VAT
ATTENTION: Do you own a holiday home (Alojamento Local) in Portugal as a non-resident? You have likely already declared your rental income for personal income tax (IRS) by now, or you will do so before July 1, 2026.
However, there is a big chance that you have also unknowingly built up a VAT (IVA) backlog! Since July 1, 2025, the Portuguese tax rules for foreign owners have changed.
The well-known VAT exemption (Artigo 53) up to €15,000 is no longer automatically valid for non-residents. Have you received rental income since July last year but haven't filed any VAT returns? Then it is wise to take—or have someone take—the right measures as soon as possible. Feel free to contact me if you want to know more and/or need any assistance.