More information about AL Licence

Thanks to Sam who has posted this on the Madeira Active Group, those who don’t use Facebook the info is copied below.

I have had a few messages from people asking about SEF (immigration with the AL licence). It seems that quite a few licence holders had no idea about having to register with SEF or that it was a mandatory part of the AL licence…so I hope to clear this up a little.

It has been confusing to me, so no one is alone in this…I was one of the first on the island to get mine and at that time they had no idea what they were doing!

As it is now a very regulated area of tourism (the old tourist licence was phased out as the new AL was phased in……with the tourist licence it was much harder to obtain, as there were bed number limitations in areas and limited criteria on who could obtain one )….AL has allowed a much broader spectrum of accommodation that has filled the niche and needs of our visitors.

Over the years, it has become stricter and many changes to how it operates…when I first applied for mine, I paid around 2 euros for the application..had an inspection, which consisted of the architect from the Camera, a guy with a clip board and a lady from the tourist board. All I had to show them was my ‘red book’, copy of my insurance that includes public liability and a fire blanket and extinguisher in the kitchen….and I was set to go (and have been since 2009). At that time, I could include the rental as part of my income and submit the income in my yearly tax return. There was no onus on me to create receipts and I could not claim expenses.

A few years later, I received a letter from the Camera adding a new requirement – the mandatory collection of statistics for the tourist board. Shortly after that I was sent the forms to be filled in and by the 8th of every month, statistical information has to be sent there on nationality and numbers of guests and nights stayed.

A couple of years ago, I received another series of letters from the Camera informing me that all AL holders must now register their paying guests with SEF…apparently this had always been the law to do this……but SEF had been in touch with all the Cameras to let their licence holders know as many weren’t doing it. I subsequently went to a meeting with them and was accompanied by another member of Madeira Active…..it was an informative meeting and we were explained in detail how to register and what to do. We were told that there were heavy penalties for not doing this and we were showed a very long list of who was not complying….telling us that they were getting through it with inspections (I was on that list and many others who I know)!

Last year I received another letter from the camera asking me to take in my ‘activity’ so that it could be registered and that my old licence would have a new licence number. I saw my accountant as I had no idea what was required and was told that, now with the new regulations, we could not submit the income as we had always done, it has to be run as a business and in turn that meant paying social security, along with creating receipts and more paperwork! So, I reluctantly gave in and we set up an activity (as there was no other way to get around this). As soon as I submitted those papers to the Camera, I was instantly given my new number.

I applied for a second licence on another property earlier this year. As my first property is in Ponta do Sol (and I have to take my hat off to the Camera there for keeping me very well informed…when other Cameras have not been so helpful or forthcoming with their AL holders)…I had to apply for the new one in Funchal as that property is situated there. I made sure that I had every scrap of paperwork needed and went to their offices to get it. The girls dealing with that application didn’t realise I had another and carefully explained that I must go register myself with the finance department first before making my application. As I already had an ‘activity’ and obtained a copy for them, I was able to apply….the same day I got my number and two weeks later my inspection.

This time one inspector came and it took all of 5 minutes…he wasn’t too bothered as he said I knew what I was doing as I already had another licensed property – but he pulled me up on the stickers that now have to be displayed all over the place (a glow in the dark one at the top of the stairs indicating in which way you have to walk down to the stairs! Exit signs, sticker on the electric box, one for the first aid box and of course for the fire extinguishers…as well as 112 on the front door)!
Within a week of the inspector, I received a letter by email from SEF telling me to register the new property.

I have had so many discussions with people over the last year who are not doing this with SEF…the reaction I usually get is ‘no one told us WE have to do it’ – ‘Our Camera didn’t notify us, so maybe you only have to do it because you are in Ponta do Sol’ – ‘I have never heard of SEF and you only have to do it if you are a hotel’ ……..and most have said they are not going to do it as I am wrong in this! But as the inspector at SEF told me at my meeting…ignorance will not be an excuse. It is YOUR responsibility to distinguish the laws of the country you live in and ensure that when you do something here, you do it correctly. They will eventually catch up with you over time!

With that said, it is a little complicated in registering as the website for SEF is in Portuguese and not an easy one to navigate. In my opinion the layout and format is badly designed and I still struggle with it. I have had problems trying to register my new AL with them, and have had a series of emails back and forth on how to set up a second registration. Yesterday I finally got one back with a direct translation into English which I have attached as a PDF to this post…..this although outlines for me on how to register my second unit, applies to the same of making a new registration, so it may help to print it off and set it up yourself…..or go and see them and get them to show you how to do it.

I am sorry this post is so long, but I felt I needed to write something here and hope it all makes sense. And for any of you who are refusing still to believe that this IS PART OF YOUR AL…then think about this…. If it weren’t, why was it a requirement for me to show the paperwork along with my receipts at my tax inspection on Monday? I cannot stress enough, that this is part of it, and if you haven’t applied – do so now. The fines and the worry of getting an inspection and not having all your paperwork in order is just not worth it…and I know how terrifying these people really are!!!

And as an addition here, for those of you who are weighing up the pros and cons of getting a license as the hassle might be too great if you are only thinking about renting whilst you are not occupying…..everyone who takes money from guests MUST have a license..there is no exemption or exception. And as Portugal have made this law you will now find that you will be unable to advertise your property on the major rental portals on the internet as you will have to submit your AL number. I was called by Booking.com last week telling me that my advert would be pulled if I didn’t submit my number to my account with them….other websites have emailed the same. So, be warned!

You can download the SEF form Here