How Alojamento Local income is taxed in Portugal (2026)

Category B vs Category F, the simplified regime coefficients, VAT at 6%, the IVA registration threshold, IMI and municipal surcharges — a plain-English map of AL taxation for owners and accountants.

AL income is business income, not rent. That single distinction drives almost every tax question owners ask. This is a practical map — not tax advice; your accountant owns the final numbers.

Category B, not Category F

Renting to tourists through an AL registration is Category B (business and professional income). Long-term residential letting is Category F. If you were declaring AL money as rental income, you were on the wrong schedule.

Opening activity at Finanças under the correct CAE code is part of setting up an AL; the RNAL registration alone does not do it.

The simplified regime

Most individual hosts fall under the regime simplificado, where only a coefficient of gross income is taxed rather than actual profit minus expenses.

Accommodation activity typically uses a coefficient of 0.35 — meaning roughly 35% of turnover is treated as taxable income and 65% is deemed costs.
Properties in designated containment areas have historically been penalised with a higher coefficient. Check the current year's rules with your accountant, since this has changed more than once.
Above roughly €200,000 of annual turnover you move to contabilidade organizada (organised accounting) with a certified accountant and real expense deduction.

Part of the deemed-cost allowance is conditional on having documented expenses, so keep invoices even under the simplified regime.

VAT (IVA)

AL accommodation is subject to IVA at the reduced rate of 6% on the mainland (lower regional rates apply in Madeira and the Azores). Ancillary services such as cleaning charged separately, breakfast or parking may sit at different rates.

Small operators below the annual exemption threshold can use the Article 53 exemption and not charge IVA at all. Once you cross the threshold, registration is mandatory and cannot be applied retroactively — watch your turnover during a strong summer.

Note that tourist tax is not your revenue. It is collected on behalf of the municipality and should be shown separately, outside your taxable turnover. See tourist tax in Portugal.

Invoicing

Every booking needs an invoice or invoice-receipt issued through certified invoicing software or the Portal das Finanças, with the guest's name and, where provided, NIF. OTA commission is a separate purchase invoice from the platform — for Booking.com, that usually means reverse-charge IVA handling.

Property taxes

IMI is due annually on the property as normal.
Some municipalities apply a higher IMI or local surcharge to properties used for AL.
AIMI may apply to high-value portfolios.

Records to keep

Keep, for the standard statutory period: invoices issued, platform payout statements, tourist tax declarations, SIBA submission confirmations, INE WebInq receipts, and insurance certificates. See records an AL must keep.

Where Chave AL fits

Chave AL is not accounting software and does not issue certified invoices. What it does give your accountant is the underlying data, cleanly: guest nights per month, tourist tax collected versus tourist tax due, per-property occupancy, ADR and RevPAR, and the municipal declarations already reconciled.