lots

Can anyone give any advice on long term rentals...what would the likelihood of finding a 2+ bedroom furnished villa with a private pool in a rural location within 80km of Albufeira for 700Euros or less a month?

Any info would be greatly appreciated

MrBife

I think the chances would be low to average but more likely at nearer 1000 a month but only if you were beginning the rental period in September/October. As it is now owners are geared up for €1000 + per week for that kind of property and would prefer to take their chances for the summer season and consider a long term rental only afterwards.

Put yourself in the owners shoes - if you owned an asset valued at say €400,000 wouldn't you want at least a 3% return on your money ?

GeniB

The tax rules are also different for long term rentals,which puts many owners off.My YD just had a family looking for a long term rental in the Lagos area, 4bed villa with pool etc..No chance,they gave up and went to Almancil,found one with great difficulty.It's a real problem for people who actually want to live and work here,not just come for a holiday

liveaboard

It's true; while they [supposedly] eased the tax rules for tourist rentals, they really put the boot in for residential landlords. High flat tax rate with practically no deductions allowed.

Wendy Crowther

We are looking to rent in Albufeira for eight months as from Sept 2015 -April 2016 a one bedroom apartment we do not need a cleaner etc and will happily pay extra for utilities. We are a middle aged couple who just enjoy Albufeira please email me with any suggestions on <snip>

TonyJ1

Rules change as from 2015 tax year - most expenses are now deductible as long as tax numbers are included in expense invoices, etc (no proper invoices - no deduction). Under category F, certain expenses are still limited such as financing costs, furniture and decorative expenses (presumably curtains, bedding and such) (in the case of furnished rentals). Presumably these expenses are deductible under category B - though, should register as a business with the tax authorities.

liveaboard

Ah, more complications... My rental income is from another country, but is taxed in Portugal.
Aside from expenses, it's now taxed at a flat rate that works out very badly for me, and I don't get deductions for things like my health costs that I used to.
They're taxing long term rentals in a way that is very punishing to small landlords.
I wait to hear from my accountant on the matter.

TonyJ1

Is there no double tax treaty with this country? Normally rents are taxable in the paying country.

liveaboard

You're right, but this case is different. The country where the property is located does not levy any tax on the rental income when the owner is not a resident there.
If I moved to a country that didn't tax my worldwide income, I wouldn't have to pay at all.

TonyJ1

You did not answer my question - you have to look at the double tax treaty, it might be that the accountant filled in the incorrect tax form - often happens - you need to double check.

liveaboard

Yes, there is a double tax treaty, but it does not apply to me; I am not taxed, except in Portugal. Just the once. Not double.
This income is not taxed by the country where it is generated; I understand this is usually the case with property rental income, but not in this case.
That has been confirmed in writing by the tax authorities there. I have to pay tax on the income only to the Portuguese financas.
My accountant is considered an authority on European double tax treaties, so I'll trust his advice on this.

blownaway

One option is to found a house sit:

House Sitting Made Easy: TrustedHousesitters.com

Spritzer

We are in the position of thinking about re-retiring there. We retired to BC Canada but it's not for us. Now we're looking at Portugal, and need a base to look around. I'll follow this thread with interest. Good luck!