In yet another binding ruling (Processo: 26669, com despacho de 2024-08-29), Finanças has just confirmed some conditions regarding the Mais Habitação legislation, and specifically the measure which afforded owners complete exemption from income tax on long-term rental earnings when the property was previously an Alojamento Local property.
The ruling was issued in reply to a taxpayer who had queried if the tax exemption would apply to a rental contract signed in 2024 for a property that was previously an AL property, if this contract was renewed annually starting in 2025. The taxpayer also wanted to know if the exemption would apply if a new contract was signed for this property in 2025.
Finanças confirmed the following for properties registered as an AL before 31st December 2022:
Interestingly, nowhere in this text is anything mentioned about having to cancel the AL registration. The only legal requirement is that the AL registration had to be done before 31st December 2022.
Another interesting point to come out of this ruling is that Finanças mentions the possibility of the owner having more than one property in this situation, with the same rules being applied to all such properties, and meaning that the same person could have several properties being exempt from long-term rental tax until the end of 2029.
Lastly, they also mention that such an exemption may be possible when a part of the property is rented like this, which could apply to, for example, one or more rooms.