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Knowledge   >   AL: I’m just the owner, so I don’t have to pay CEAL. Is it really like that?

AL: I’m just the owner, so I don’t have to pay CEAL. Is it really like that?

The “More Housing” package brought some innovations for 2024, one of the most relevant and controversial (in terms of its constitutionality), with regard to local accommodation (“AL”), being the increase in the tax burden for accommodation registration holders. local through the creation of the extraordinary contribution on AL (CEAL).

The CEAL is applicable to AL whose activity is carried out in properties of a residential nature, the prerequisite for the application of the CEAL is the existence of an AL license valid on December 31st of each calendar year so that the property allocated to the AL is subject to payment of this contribution the following year.

What do I need to know about CEAL?

All ALs covered by the legislation and with a license valid on December 31, 2023, will pay CEAL this year.

Incidence exclusions

  • AL in non-housing properties
  • Properties located in interior territories (as identified by the Government in the annex to Ordinance no. 208/2017) and those in other territories that are covered by a municipal Housing Charter; where there is no housing shortage and even if they do not have any part of their territory in an urban pressure zone;

Tax exemption

  • AL operating in the housing modality;
  • AL in bedroom mode;
  • AL registered in the same place as the property owner’s own permanent residence, if exploitation does not exceed 120 days per year.

The specific case of autonomous regions

The autonomous regions of Madeira and the Azores were given the opportunity to define the territories that are excluded from applying the CAEL.

Very recently, Regional Legislative Decree No. 1/2024/A, of May 3, was published by the Legislative Assembly of the Autonomous Region of the Azores, which “proceeds to the exclusion of properties located in the Autonomous Region of the Azores of the objective incidence of the extraordinary contribution on apartments and accommodation establishments integrated into an autonomous fraction of a building in local accommodation (CEAL)”.

Now, it has been decided by decree that properties located in the Autonomous Region of the Azores are excluded from CEAL.

Deadline for submission of declaration and payment

The contribution is paid by the taxpayer, through an official model declaration, the deadline for which ends on June 20th and the respective payment must be made by June 25th.

Applicable fee

The rate applicable to the tax base (variable) is 15%.

The tax base on which the 15% CEAL applies is calculated through the combination of three factors: the economic coefficient of local accommodation (CE) and the urban pressure coefficient (CPU) to the gross private area of ​​the property (ABP) applied to the gross area of ​​local accommodation.

Passive subject

The CEAL debtor is the holder of the AL license, there is, however, subsidiary responsibility of the property owner.

Therefore, be aware that, even if doubts arise regarding the constitutionality of the CEAL and the contours in which it was designed, namely due to violation of the principles of adequacy, proportionality and taxation based on real income and contributory capacity, if you are not the license holder, you may still be responsible for paying the CEAL, if the license holder fails to pay and if you are the owner where that AL is exploited.

Find out how you can react, if you are notified to pay CEAL, by contacting the CRS team.

Telmo Guerreiro Semião,
Partner

Natacha Branquinho,
Lawyer