With this new legislation, non-resident Local Accommodation owners can no longer benefit from VAT exemption, regardless of turnover. From this date, it will be Since July 1st, 2025, relevant changes to the Special VAT Exemption Regime provided for in article 53 of the VAT Code (CIVA) have come into force, according to Decree-Law No. 35/2025, of March 24th. These changes have a direct impact on all Local Accommodation (AL) holders who operate as Sole Proprietorships (ENI), with special emphasis on owners who are not resident in Portugal.