Portugal issued Decree-Law No. 57/2024 in the Official Gazette on 10 September 2024, abolishing the extraordinary contribution on local accommodation (CEAL). It also abolished the increased ageing coefficient previously used to calculate the tax patrimonial value (VPT) of local accommodation properties for municipal tax (IMI) purposes.

The CEAL tax was set at a rate of 15%, calculated based on a taxable base derived from applying the economic coefficient of local accommodation and the urban pressure coefficient to the gross private area of residential properties.

The initial CEAL payment was to be made in June 2024 in respect of the year ending 31 December 2023, but this was suspended pending the repeal of the tax, which is intended to apply retroactively.

The new decree specifies that the repeal takes effect on 31 December 2024. However, the Ministry of Finance has reportedly confirmed that this will be revised to make the repeal retroactively effective from 31 December 2023.