How to Open Alojamento Local Activity with Finanças in Portugal

In Portugal, people often say they need to “open activity” (abrir atividade) when they are about to start working independently. This means notifying the Portuguese Tax and Customs Authority, known as Finanças or AT, that you will carry out a professional or business activity.

It is an important step for freelancers and people starting a side activity. But it is not the same as setting up a company, and it does not replace any separate licences or registrations your business may need.

This guide explains what to prepare, how to submit the declaration, and what accommodation hosts should check before they begin.

What does “open activity” mean?

If you will regularly provide services, sell goods, or otherwise work independently, you generally need to submit a declaration of commencement of activity (declaração de início de atividade). AT says this declaration should be submitted before the activity begins. The government service page says freelancers and people taking on independent work alongside an employed job should file it before their start date, at the latest on that date. (AT guidance, gov.pt service)

Opening activity is generally associated with working as a sole trader or independent professional. If you intend to operate through a limited company, company formation and tax registration involve different steps.

What to prepare before filing

Before you complete the declaration, gather:

• Your Portuguese tax number, or NIF

• Access to the Portal das Finanças

• The date you plan to start

• The correct activity code or codes for the work you will do

• An estimate of your turnover through the end of the calendar year

• Your IBAN and, where requested, BIC/SWIFT for an account in your name

AT uses the information in your declaration to determine your initial IRS and VAT tax arrangements. Your activity and circumstances affect which options apply, so do not choose a tax regime based only on what another freelancer uses. (AT: Início de atividade)

Choose the activity code carefully

You may need a CAE code, a CIRS activity code, or another applicable classification, depending on the work you perform. Select a code that accurately describes your actual activity. Check the current official classification or ask a certified accountant if more than one code seems relevant.

This matters especially if your work combines different services or includes short-term accommodation. Avoid copying a code from an old online guide without checking that it still applies to your situation.

How to submit the declaration online

Sign in to the Portal das Finanças and look for the activity declaration service. The exact menu labels can change, but AT lists the online route as ATividade → Submeter declarações. You can also check the current service instructions on gov.pt.

You will be asked for information such as your start date, activity codes and expected turnover. Review the sections concerning IRS and VAT carefully. Then validate the details, correct any errors, and submit the declaration.

Save a copy of your submitted declaration and confirmation for your records.

What happens after you open activity?

Once your activity is registered, keep your tax information current and issue the appropriate invoices or receipts for your work. The document and tax treatment you need depend on your activity and status; check your Portal das Finanças account and the applicable official guidance.

You should also check your Social Security position and any contribution or reporting obligations that apply to you. Do not assume that another person’s first-year arrangements or contribution amounts will apply to your case.

If your work changes, your activity codes or other details may need updating. If you stop working independently, check how to submit the relevant cessation declaration.

A separate note for Alojamento Local hosts

Opening activity with Finanças is not the same as registering an Alojamento Local (AL) establishment. The government’s AL guide describes a separate registration process through the Electronic One-Stop Shop, with requirements that can involve the relevant municipality. Check the current Alojamento Local guide before you begin operating.

The tax treatment can also depend on who owns and operates the accommodation. AT’s guidance discusses cases where AL operating income is treated under Category B, and notes that individuals operating an apartment or house establishment may, subject to conditions, opt each year for Category F tax rules. Your circumstances matter, so confirm your position with AT or a certified accountant. (AT FAQ on AL income)

Common questions

Can I open activity if I already have an employer?

Yes. Government guidance includes people who carry out independent work alongside employment. Your additional activity still needs to be declared where the rules require it. (gov.pt)

Is opening activity the same as creating a company?

No. This guide covers notifying Finanças about independent work. Setting up a company involves separate registration and administrative steps.

Can I use the same activity code as another freelancer?

Not automatically. The right code depends on the activity you will actually perform. Check the current classification and get professional advice if you are unsure.

Does opening activity complete my Alojamento Local registration?

No. Tax activity registration and AL establishment registration are separate processes. Check the current government AL requirements for your property and municipality.

Before you begin

The most important steps are to identify the correct activity, estimate your turnover carefully, and understand how your declaration affects your tax arrangements. If your work includes Alojamento Local or several types of income, get advice based on your specific situation before submitting.

This article is general information, not tax, legal, or accounting advice. The Santander guide you shared was used as background; this article is an original draft, with the procedural points checked against current Portuguese government and AT guidance. (Santander reference)

Once your AL operation is set up, EazyAL can help organize guest check-in, stay records, and supported accommodation workflows. It does not open tax activity or replace Finanças or an accountant.