Samantha Cox has written some good information on her Madeira Active Facebook Group If you are on Facebook, this is a great page to join, as with my blog (which you are reading :-), you have the 2 best sources of information on the island.
So this is a copy of the information Sam has shared.
As usual I write a little something that I feel may be important to others here in the group. It is from my perspective but hope this helps.
Holiday rentals/Alojamento Local – many of us here rent out our property to source an extra income. All of us know it is regulated and in order to be legal this has to be registered with the local Camera and a licence applied for. (AL) There have been many changes to this over the last couple of years, namely in order to get any new licence one has to open an ‘activity’ with the finance department. Old licensees like myself, had to change to this last year. There are two other bodies that you MUST register with, in order to comply with the rules of the licence and the law….1. Tourism statistics and 2. SEF (immigration).
From the finacial side, it is now mandatory to produce electronic facturas/receipts every time a guest comes to stay. This is done direct with the finance department and your accountant can do this on your behalf.
With SEF every time a guest arrives you have to take their passport or ID card and register them within 3 days of arrival by using their website. They give you a code and password and through that you fill in the document details.
A few months ago, I posted here about my experience of having the AL inspector and the Tax inspector turn up at my home, unannounced to carry out an on the spot inspection…..I have since heard that I am not the only one, and have learned that this year they have targeted many AL licence holders and are singling out several for a tax inspection….and I was one of those to be singled out!
This morning I turned up at their offices in Funchal for my Tax inspection meeting. It is not a pleasant experience and they really do go over everything in detail. For this meeting I had to supply 2 months worth of accounts….in the form of: Receipts and Factoras for the guests that stayed during that period. Copies of the registration of their documents with SEF. A booking list with reservation numbers and proof of payment from each booking platform (airbnb, Home Away etc). Copies of their bills to me for commission. Individual guest print outs with dates of arrival and payment information. My diary to show the bookings. They wanted to know if I ran my own website and what bookings came from there. Was there any cash bookings? As I was only asked for one of my properties, they have now asked for the same with my other one.
I left there exhausted and not happy that I have to do this all over again and not sure what comes next. But all I can say and hence my reason for telling my story here is, is that if my experience helps anyone who hasn’t been on top of their paperwork lately, then now is the time to sort it. If you have an AL and rent, you are quite likely to get an inspection. If when they arrive you have all the papers up to date as they will ask for them then, do it, as it might save you an unpleasant exercise as I have done this morning.
If anyone is in doubt or hasn’t registered with SEF I have attached a file that tells you how to do this….the tax inspector will ask for this to be included in your papers!