According to Portuguese legislation, Local Accommodation includes properties (apartments, houses, rooms, or hostels) intended for the provision of temporary accommodation services, without the nature of permanent residence. By registering your property as Local Accommodation (AL), it is considered an economic activity and, therefore, is subject to taxation under IRS or IRC, depending on the type of activity holder (individual or company).

If you are a sole proprietor, you must declare the income from short-term rentals under Category B (business and professional income) or, in certain cases, under Category F (rental income).

Framing options:
1. Simplified Regime (Category B):

Automatically applied to incomes up to €200,000/year. Only a portion of the income is taxed (coefficient of 0.35 for short-term rentals in apartments), and this amount is subject to progressive IRS rates.

• Mandatory for incomes exceeding €200,000/year or by choice.
• Allows the deduction of actual expenses (e.g., maintenance, cleaning, platforms, commissions), but requires the support of a Certified Accountant.

• It applies to longer contracts or passive income in certain situations.
• It does not allow the deduction of as many expenses as Category B.

• Water, electricity, gas, and internet bills
• Maintenance and cleaning of the property
• Equipment and furniture
• Platform commissions (Airbnb, Booking, etc.)
• Services of Rent2you and other intermediaries
• Proportional insurance and IMI

The IRS declaration must be submitted between April 1 and June 30 of the year following the income earned. Use the Tax Authority Portal, filling out Annex B (or Annex C, in the case of organized accounting).

• Submit monthly invoices on the e-Invoice Portal
• Pay the municipal tax (IMI) and, in some municipalities, the tourist tax.
• Comply with the registration at the Tax Authority and the municipal licensing of the AL.
Issue invoices for each stay (even if through platforms)

• Always keep expense receipts.
• Work with a certified accountant (especially for organized accounting).
• Use digital tools to record entries, invoices, and reports.
• Make sure your property is properly registered with the Tax Authorities and Tourism of Portugal.
• Stay informed about legal updates — the legislation on AL has undergone changes in recent years.