Buying a holiday apartment in Carvoeiro area

1) To rent out a property anywhere in Portugal as a holiday let you need to apply for an AL license and pay a fee. If the property is part of a residential condominium you'll also need written permission of all the other residents before you apply for an AL license.

2) The property will be inspected before the license is issued.

3) If there is a local shortage of properties for residential long lets, you may not get your AL license and without it it's impossible to use the property for holidays lets. If you do you'll be breaking the law and you could incur a very heavy fine (from 5,000 to 25,000 Euros).

4) If you get the AL license, the income generated will attract a specific higher tax rate. The property will also be considered as "commercial" (even if you live in it some of the time) and will attract a higher annual property tax. If you sell it any time in the future, the profit will be taxed at a higher rate too.

5) I'd advise you to consult an accountant and work out what are your liabilities  and if it is worth all the hassle.

6) I know someone who rented out a property in the Algarve through an agent, and they had a lot of long void periods... then after nearly a year the owners turned up unannounced and found the property occupied. The agent was renting it out and pocketing the money... I've hear this happens a lot in Portugal when owners are absent..

Hi and Welcome.

I think there's a Britisher expression "Moon on a Stick" seems to apply.

Not in the Algave but I've rented out and looked after some friends rented places.   I only did so as I lived within walking distance and my job involved property maintenance, I would never be involved in renting if I was elsewhere. you only have to read some of the posts on this forum to find the issues people have when they are not directly in control of the process. Just read the ongoing problems getting people to do Building work/ maintenance particularly if you are not a Portugese speaker. 

If I knew/trusted the following

A professional, capable and reasonably priced solicitors able to act on our behalf in the purchase of an apartment within a condo.

A local property management agency that has proven they have a very high standard of letting and maintaining your property for holiday lettings

A go to site or company that can offer trades people services for electrical works, carpentry, plumbing and roofing, especially with regards to the ongoing maintenance of a flat roof through flat roof covering systems or flat roof tiling

I'd never get them involved with someone I didn't know/trust.

The only sensible way is for you to be here and go through the search, process, decisions, paperwork yourself.

Good Luck