Portugal AL Rental Income Tax Estimator

Portugal AL rental income tax estimator

Estimate your annual Portuguese IRS liability on Alojamento Local income

Your rental income

Gross annual rental income (€)

€

Please enter a valid income amount above zero.

Property type

Villa or apartment (standard) Moradia or apartamento outside a containment zone — 35% taxable coefficient

Villa or apartment (containment zone) In Lisbon's historic centre or another containment zone — 50% taxable coefficient

Room rental (estabelecimento de hospedagem) Renting individual rooms within a property — 15% taxable coefficient

Your Portuguese tax status

Most UK owners letting a Portuguese holiday property are non-resident. Non-residents pay a flat IRS rate, so this estimate can give a single figure.

Your estimated liability

Estimated Portuguese IRS

€0

Based on a non-resident flat rate of 25%

Effective rate on gross income: 0%

Gross rental income €0

Taxable coefficient applied 35%

Taxable income (after coefficient) €0

IRS rate applied 25%

Estimated Portuguese IRS €0

Social security is separate. AL income is Category B (business) income, so it can also attract Portuguese social security contributions on top of the IRS shown here. Whether they apply, and at what level, depends on your circumstances and any A1 or equivalent coverage you hold elsewhere.

VAT applies separately. From 1 July 2025, non-resident AL operators must charge 6% VAT on guest stays and file quarterly returns through a Portuguese fiscal representative. VAT is collected from guests and remitted to the tax authority — it is not an additional cost on your income, but it does add compliance obligations.

What this leaves you in sterling This figure is in euros, before you move anything home. Exchange rates decide what actually lands in your UK account — and a rental income stream means repeat transfers, not a one-off.

How buyers manage euro-sterling transfers Speak to a Portugal tax specialist Or browse Portugal property listings