Holiday lettings,
hassle-free.

Yes. Non-resident foreign property owners can operate holiday lettings in Madeira. They need a Portuguese NIF, a fiscal representative and must comply with all Portuguese tax obligations on generated income.

Our "Buying Property in Madeira" package integrates all these elements in a single service.

Under Category B (business activity), holiday lettings are treated as an economic activity. This allows the simplified regime with a coefficient of 0.35 (taxing 35% of income) or organised accounting with full expense deductions.

Under Category F (property income), income is taxed at 28% with specific deductions available. Category B is generally more advantageous for active holiday lettings, but it depends on each owner's specific situation.

It depends on your turnover. If annual holiday letting turnover is below €14,500 (the Article 53 VAT exemption threshold), you are exempt from VAT. Above this amount, VAT at 6% on accommodation services becomes mandatory.

We manage this process, including VAT registration and periodic declarations, as part of our holiday letting tax compliance service.

Yes. Any withholding by platforms (where applicable) is an advance payment that is later deducted from the final IRS liability. You are always required to declare all holiday letting income in your annual IRS return, regardless of any prior withholding.

Platforms are also required to report your revenue to the Tax Authority, so all income is visible to the tax authorities.

The NIMI (Property Identification Number) is a unique identifier generated during the RNAL registration process. It is the number that appears on the official holiday letting register and must be included in all communications and advertising on OTA platforms.