Homing opens a new store dedicated to the management of local accommodation in Lisbon
The Homing Group just inaugurated a new store in the centre of Lisbon, namely on Avenida Duque d’Avila focused on Local Accommodation (AL) management.
Homing was created in 2016 with the aim to have a close and supportive relationship with each guest, owner, investor, sponsor, or those who want to know more about this activity. The opening of a new unit in Lisbon followed the expansion of Homing’s local accommodation activity to Oporto and Algarve, with the opening of two stores in 2019. In 2020, the group included real estate in its offer by creating the brand Homing Real Estate.
Five years later, the company still focuses on the growth of the local accommodation management business.
Homing Short Rent, the brand that manages local accommodation units, operates in the short and medium-term rental on online platforms and in its physical store, where owners are received and clients are welcomed every day for check-in and check-out, still focuses on its expansion.
Homing is now in Algarve
Homing expands its operation to Algarve and extends it Local Accommodation offer.
HOMING, which operates in the Local Accommodation management market, wants to expand its operation, which is now based in Lisbon, to Algarve with the opening of two new stores. This expansion aims to strengthen brand growth and make it a national reference while keeping the DNA of trust that is currently placed on the Lisbon’s store.
Operation expansion concerns foreign owners and investors with properties or second homes in Algarve, with which Homing intends to partner up and support them in making a profit from their businesses.
Tomás Azeredo Perdigão, former HOMING marketing manager, says that “operation expansion is a result of the defined strategy to increase and diversify our offer and explore new markets and different tourism options. With the consolidated brand, we want to strengthen our growth in a sustainable way and reach the 400 units in Portugal this year”.
The type of houses that are wanted for this service in Algarve are villas and apartments, based on the same variable (from 20% of booking value) or fixed (guaranteed income) management model.
In a sector that is not very professionalized, the option of handing over property management to specialised companies benefits owners and investors. The cost of management fees is offset by the increase in property profitability. Concurrently, those who want to make a profit from their properties or invest in Portugal usually have little time and hire full management services, which include property maintenance, check-in and check-out, advertising, and paperwork.
HOMING offers more than 250 units on its platform between Lisbon and Barcelona. In Lisbon, the company manages more than 200 units which are the equivalent to about 200 million euros worth of property.
Local Accommodation Guide
If you want to make a profit from a property and rent it for short periods, then this guide is for you. From legislation to taxes, we will explain you everything about Local Accommodation.
We start with short-term rental. This type of rental is encompassed by the Local Accommodation category, which includes apartments, villas, lodging establishments that provide temporary or tourist accommodation in return for money for periods shorter than 30 days and don’t meet the requirements for being considered tourist resorts.
Read the Local Accommodation guide that we prepared for you and don’t get lost. Follow us step by step.
Read the Local Accommodation guide that we prepared for you and don’t get lost. Follow us step by step.
Step 1: opening activity with the Tax Office
If you want to make profit from a house that you have and start renting it to tourists, for example, you will need to open a business activity as a provider of local accommodation services (category B) with a Tax Office or via the Tax Authority Portal, free of charge. You can select the CAE55201 (that concerns furnished accommodation for tourists) or CAE55204 (that concerns other short-term accommodation). If you rent your property via foreign websites, such as Airbnb, Booking, Homeaway or others, you should enable the intracommunity acquisitions right away.
Step 2: don’t forget Social Security contributions
When open your local accommodation service provision activity, you are also registered with the Social Security and must pay monthly contributions. But here’s a tip. You can petition for an exemption if you are employed and are already paying Social Security contributions or if you are retired.
Step 3: registration on Balcão Único Eletrónico
Before you start making profit from your property, you must register your property by notifying the City Hall via the Balcão Único Eletrónico. This procedure is free. You just have to submit some documents and your local accommodation establishment will be given a registration number. Data will also be automatically sent to Turismo de Portugal and the National Local Accommodation Register (RNAL).
Please note that you will need the following documents for the registration:
– Copy of the identification document of the person exploiting the property
– Copy of the property tax document
– Statement of responsibility signed by the person exploiting the property guaranteeing that the property can be used for the provision of accommodation services
Once you have the registration number, you can receive guest and put your ads on booking platforms (where you have to associate your registration number to your ad). However, please note that after you open the activity with the Tax Office and give prior notice, the City Hall has 30 days to carry out an initial inspection of the property and confirm the information on the registration, but you don’t have to wait to open your house to the public. There may be other inspections afterwards, requested by the municipality or ASAE to Turismo de Portugal.
Please note that you will need the following documents for the registration:
– Copy of the identification document of the person exploiting the property
– Copy of the property tax document
– Statement of responsibility signed by the person exploiting the property guaranteeing that the property can be used for the provision of accommodation services
Once you have the registration number, you can receive guest and put your ads on booking platforms (where you have to associate your registration number to your ad). However, please note that after you open the activity with the Tax Office and give prior notice, the City Hall has 30 days to carry out an initial inspection of the property and confirm the information on the registration, but you don’t have to wait to open your house to the public. There may be other inspections afterwards, requested by the municipality or ASAE to Turismo de Portugal.
Step 4: safety requirements
When the initial inspection is carried out, the municipality will confirm if you are following fire safety rules. If you have an apartment or villa, you must have a fire extinguisher and a fire blanket, first aid kits and the national emergency number (112) in a visible location. These are the rules for a local accommodation that takes up to 10 users.
Step 5: other requirements to remember
To avoid fines, you must have a Complaints Book, which can be bought with the Imprensa Nacional Casa da Moeda. Your local accommodation must also meet the following requirements:
– Have all installations and equipment in a good conservation and operation condition
– Have cold and warm running water
– Have windows to the outside
– Have proper furniture, equipment, and utensils
– Gather hygiene and cleaning conditions
– Have all installations and equipment in a good conservation and operation condition
– Have cold and warm running water
– Have windows to the outside
– Have proper furniture, equipment, and utensils
– Gather hygiene and cleaning conditions
Step 6: reporting to SEF
If you rent your house temporarily to foreign citizen, please note that you must notify the Portuguese Immigration and Borders Control (SEF) about their stay within a maximum period of three business days (after the check-in and check-out). You can do it via an accommodation form or directly via the SEF Portal. This way, you must ask every guest for their full name, date of birth, nationality, passport number or identification document, country of origin, and check-in and check-out dates.
Step 7: issuing invoices
Every time you receive a payment from a client for a service provision, you must issue an invoice via the Tax Authority Portal. In alternative, you can issue an invoice using a certified software or have a receipt booklet with a certified typeface with your Tax Identification Number and address. Don’t forget that if you don’t issue the invoices on the Tax Authority Portal, you must notify the Tax Authority, via the upload of an SAF-T file to e-fatura, about the invoices that you issued on the previous month by day 20 of every month.
Step 8: taxes payable
As an owner of a property for local accommodation, you will have to declare on your Tax Return the amounts that you received and for which you issued a receipt. We recommend that you use the calculator and do some calculations before you make any decision that could influence taxes that apply to your income from your local accommodation.
Firstly, you can opt for the simplified regime (for income up to 200 thousand euros per year) or organized accounting (for income over 200 thousand euros per year). If you opt for the simplified regime, your revenue concerning local accommodation will be taxed in 35%, and the Tax Authority will assume that the other 65% were expenses with your local accommodation activity.
If you opt for organized accounting, you will have to calculate all expenses that concern your local accommodation (which must be properly documented) and subtract such amount from the total profit you had with this activity. The resulting amount will be taxed. If you opt for organized accounting, you must hire a chartered accountant.
There is also a recent option, created with the State Budget for 2017, which states that income from local accommodation can be taxed under the rules of Category F (rental income). With this option, you can deduct expenses (condominium, construction works, municipal property tax, and water, electricity and telecom bills), and you will be taxed in 28% of your revenue (after the expenses were deducted). Alternatively, you can aggregate your local accommodation income if your tax rate is below 28%. Please note that this must be done every year.
As to VAT, you can be exempt until 10 thousand euros of annual revenue, when you are under the simplified regime. Above this amount, you will pay 6% VAT (5% in Madeira and 4% in Azores). You should do some calculations to see what’s the best option for you. If you have to pay VAT you can also deduct the tax that you pay concerning your expenses with local accommodation, for example, 23% of expenses with furniture, household items, detergents, etc. That is, you pay 6% but you deduct 23%.
Step 9: there’s someone to take care of all of this for you
If you want to make profit from a house that you have available, but you don’t have the time or availability to do it, Homing can help you. Homing is a company that manages properties for local accommodation – which has a store at Largo do Rato – that ensures contractual freedom, maximum income, and thorough maintenance.
To begin with, Homing takes care of all legal procedures, namely registration with the city hall, reporting to SEF, guest check-in and check-out, and cleaning services. Property owners may even be outside Portugal and still be able to monitor booking online. Contractual periods can be agreed upon on a case-by-case basis and you can use your apartment whenever you need. Homing is present in more than 20 platforms of this sector and has a team of maintenance technicians that inspect the properties regularly so that they are always in perfect condition.
Step 10: useful information
Local accommodation is expanding. Last year, there were approximately 18 thousand new registrations, making a total of 55,350 properties, mostly located in Lisbon (10,611), Oporto (4,881) and Albufeira (4,815). Until 2014, there were about 13 thousand properties registered.
Data are from the National Register of Local Accommodation Establishments (RNAL).