The changes introduced by Decree-Law No. 35/2025 will come into effect on July 1, 2025, and will mainly affect two groups: non-residents with short-term rentals (Alojamento Local) in Portugal, and sole traders residing in the country. Non-residents, regardless of their turnover, will be required to charge 6% VAT, appoint a fiscal representative, and submit periodic VAT returns. For residents in Portugal, the VAT exemption will remain in place as long as their annual turnover in 2025 does not exceed €15,000.
Get your short-term rental ready for the new VAT rules taking effect on July 1, 2025 — book a free consultation with a certified accountant and make sure you comply with all tax obligations.