Portugal Rejects Ban Referendum, Rentals Face Higher Taxes in Spain, Hostaway Partners with QuickBooks

Uvika Wahi

Portugal Rejects Ban Referendum, Rentals Face Higher Taxes in Spain, Hostaway Partners with QuickBooks

Portuguese Court Rejects Referendum Seeking to Ban Short-Term Rentals in Residential Buildings

  • The Portuguese Constitutional Court rejected a referendum proposal on short-term rentals in Lisbon’s residential blocks, citing legal deficiencies and insufficient verification of petition signatures.
  • The Housing Referendum Movement (MRH) sought a public vote in Lisbon on banning short-term rentals (alojamento local) in residential buildings, aiming to alleviate the city’s housing crisis and reduce resident displacement.
  • MRH argued that short-term rentals contributed to rising living costs, forcing over 4,400 residents out of their homes, and that restricting such rentals would help residents stay in their communities.
  • While ALEP (Portugal’s Local Accommodation Association) supported the decision, calling the proposal unlawful, MRH criticized it as a blow to participatory democracy and vowed to reformulate their approach.
  • This debate occurs amidst Portugal’s recent repeal of national short-term rental restrictions, with municipalities regaining authority over licensing decisions and rules for holiday rentals.

Uvika’s View

  • The rejection of the referendum removes the immediate threat of a blanket ban on short-term rentals in residential buildings in Lisbon, providing some stability for STR managers operating in these areas.
  • With municipalities regaining control over licensing decisions, managers can engage with local councils to influence fair and balanced regulations that support STRs while addressing housing concerns.
  • The rejection of the referendum does not eliminate housing-related tensions in Lisbon. STR managers may continue to face criticism from housing advocates and policymakers pushing for stricter regulations.
  • Managers can demonstrate the positive impact of STRs by supporting local businesses, creating employment opportunities, and promoting responsible hosting practices.

Spain Targets Short-Term Rentals with Higher Taxes and Non-EU Buyer Penalties

  • Spanish PM Pedro Sánchez announced plans to raise taxes on holiday rentals, aligning them with business taxation. 
  • A proposed 100% tax on property purchases by non-EU residents aims to curb speculative buying for profit
  • The government is also intensifying efforts to combat fraud, targeting unlicensed short-term rentals. Airbnb faces scrutiny, with the potential for fines related to illegal listings.
  • Landlords in high-rent areas who maintain rents in line with an official price index will receive a 100% tax exemption on that income.
  • The Spanish government also plans to promote the construction of more social housing to increase supply and address housing affordability.

Uvika’s View

  • The new tax regime for holiday rentals could professionalize the industry, but as noted by Alex Penadés, CMO at property management software provider Avantio,“increased taxes could wipe out some smaller companies and discourage new entrants.”
  • Stricter regulations and higher costs may push some operators out of the market, reducing rental supply, and potentially driving up costs to tourists
  • That said, clearer regulations may create a competitive advantage for professional operators who can adapt, as they’re better positioned to manage compliance and deliver high-quality services.
  • Penadés highlights the need for clarity and “supportive measures for small businesses” to help them navigate the changes. Without these, smaller operators may struggle to remain viable, though it remains unclear what support, if any, the government will provide.
  • The tax exemption for landlords who maintain rents at affordable levels offers diversification opportunities for managers who may want to explore long-term rental markets, particularly in high-rent areas.

Hostaway Partners with QuickBooks Online to Simplify Finances for Vacation Rental Managers

  • Hostaway, a global vacation rental property management software provider, has partnered with QuickBooks Online, a widely used accounting software for small and medium-sized businesses.
  • The integration enables automated invoice generation for new reservations, including details such as guest names, channel names, and price line items, which are synced directly to QuickBooks Online.
  • Hostaway states that the automation can save property managers an estimated 3-5 minutes per reservation by eliminating manual data entry.
  • The system allows property managers to map listings to financial fields, add custom line items, and choose between manual or automatic data synchronization.
  • The integration provides a centralized platform for tracking financial data, generating detailed reports, and gaining insights into financial performance.
  • Hostaway positions the integration as a tool to reduce administrative tasks, allowing property managers to focus on scaling their portfolios and improving guest experiences.

About QuickBooks

QuickBooks is a popular accounting software developed by Intuit, designed primarily for small and medium-sized businesses (SMBs). It provides tools to manage various aspects of financial and business operations such as bookkeeping, invoicing, tax preparation, expense tracking, and financial reporting.

About Hostaway

Hostaway is a comprehensive vacation rental property management software platform designed to help property managers and owners streamline their operations, grow their portfolios, and enhance guest experiences. Some of the features they offer include channel management, automation tools, and more.

Uvika’s View

  • Hostaway’s integration with QuickBooks Online automates invoice creation and financial data syncing, potentially reducing manual work and errors. The exact impact will vary based on your existing workflows.
  • Centralized financial tracking and detailed reporting would allow Hostaway users to better understand their portfolio’s performance and make data-driven decisions.
  • Property managers can tailor invoices, map financial categories, and choose between manual or automatic syncing to fit their unique business needs.
  • Managers new to QuickBooks or similar integrations may face a learning curve during setup, and the system’s accuracy depends on proper configuration and monitoring.
  • This integration comes shortly after Hostaway’s recent $365 million funding round, emphasizing the company’s focus on scaling its platform and delivering advanced tools to professional property managers.