The Portuguese government will soon be submitting a bill to Parliament to repeal the extraordinary contribution on local accommodation (CEAL), which was created by the previous government with the housing package.
CEAL was established by Law 56/2023, of October 6, and applies to local accommodation installed in apartments and lodging establishments in an autonomous fraction of a building used for housing, with the exception of inland territories, and consists of an annual contribution of 15% calculated on a taxable base that takes into account, in particular, the location and area of the accommodation establishment.
Alongside the abolition of the contribution, it will be proposed to repeal a legislative rule that prevents the reduction of the property value of houses in which local accommodation operates on the basis of their age, which prevents the annual value of the municipal tax (IMI) from being reduced as the property depreciates in value due to its age.
This measure is included in the government’s program, which also includes other measures to be implemented within the scope of this same activity, such as an end to the suspension of new registrations of local accommodation and an end to the ban on transfers of registrations in the event of the sale of properties, which are expected to be implemented soon.
