CAE Code for Short-Term Rentals in Portugal: Which One to Use

Before submitting a short-term rental registration in Portugal, the property owner must register the economic activity with the Portuguese Tax Authority (AT — Autoridade Tributária e Aduaneira) using the correct CAE code (Código de Atividade Económica — economic activity classification code). This step must come first: the Single Electronic Counter (BUE) registration process requires an active activity registration with the AT before it can be completed.

There are three CAE codes applicable to short-term rentals in Portugal. The one you choose is not only an administrative formality — it determines your tax treatment under IRS income tax rules, with different coefficients applying to different property types.

The three CAE codes for short-term rentals

CAE	Description	When to use
55201	Furnished accommodation for tourists	Apartments and houses — applies to the large majority of short-term rentals in Portugal
55202	Rural tourism and residential tourism	Rural properties with traditional architectural features and rural activity orientation
55204	Other short-term accommodation	Rooms (renting individual rooms in your primary residence), hostels, and accommodation establishments

CAE 55201 — the code for most short-term rentals

CAE 55201 covers furnished accommodation for tourists — apartments and houses let in their entirety to guests. This is the correct code for the vast majority of short-term rental properties in Portugal: a city-centre apartment, a villa in the Algarve, a flat in Lisbon. If you are registering an apartment or house as a short-term rental, this is almost always the applicable code.

CAE 55202 — rural and residential tourism

CAE 55202 applies to properties in rural settings with traditional architectural features and an orientation towards rural or nature-based activities. It covers both rural tourism (quinta-type properties) and residential tourism (manor houses or architecturally significant buildings). If your property is in an urban or peri-urban area — even if it is a large house with a garden — this code does not apply.

CAE 55204 — rooms, hostels, and other formats

CAE 55204 covers other short-term accommodation formats: rooms (where the owner lives in the property and lets up to three rooms), hostels, accommodation establishments, and mountain refuges. If you are registering a hostel or renting out rooms in your primary residence, this is the correct code.

How to register the CAE with the Portuguese Tax Authority

CAE registration is done by filing a declaration of activity commencement (declaração de início de atividade) with the AT. This can be done online through the Portal das Finanças or in person at a local tax office.

1. Log in to the Portal das Finanças using your NIF (tax identification number) and password or Digital Mobile Key (Chave Móvel Digital)
2. File the declaration of activity commencement — under “Declarações”, select “IRS” and then “Início de Atividade” (for individuals)
3. Select the applicable CAE code (55201 for apartments and houses, 55204 for rooms and hostels)
4. Choose your IRS regime — simplified regime (regime simplificado) is most common for new operators; organised accounting is required above certain revenue thresholds
5. Enter the planned activity start date — this should match your intended opening date for the short-term rental

If completed online, the registration is processed immediately. Save the confirmation document — it may be requested during the BUE submission.

The required sequence: AT registration before BUE submission

CAE registration with the AT must be completed before submitting the prior notice through the BUE at ePortugal.gov.pt. The BUE checks for an active activity registration with the tax authority as part of the submission process — without it, the application cannot be submitted.

The correct sequence is:

1. File activity commencement declaration with AT (CAE 55201, 55202, or 55204)
2. Submit prior notice to the municipality via BUE at ePortugal.gov.pt
3. Wait for the municipal objection period and receive the RNAL registration number

For the full registration process — required documents, timelines, insurance, and municipal deadlines — see our guide on how to register a short-term rental in Portugal.

Tax implications of the CAE code

The CAE code defines the nature of the economic activity, which in turn determines how rental income is taxed under Portuguese IRS rules. For apartments and houses (CAE 55201), income is typically declared under one of two categories:

• Category B (business and professional income): the operator is treated as a self-employed individual. Under the simplified regime, a coefficient of 35% applies — meaning only 35% of gross revenue is treated as taxable income. This is the most common approach for operators with higher revenue levels.
• Category F (property income): income is treated as rental income, taxed at a flat rate of 28% on net income. This can be more favourable for lower revenue volumes.

For rooms and hostels (CAE 55204), the Category B simplified regime coefficient is 15% — making this a particularly tax-efficient classification, as only 15% of gross revenue is subject to income tax.

Short-term rental activity is subject to VAT at a reduced rate of 6% (5% in Madeira, 4% in the Azores). Operators below the annual exemption threshold may be exempt from charging and remitting VAT. The exact thresholds and your eligibility for exemption should be verified with a Portuguese accountant (contabilista certificado).

The correct tax treatment depends on your specific circumstances. For IRS regime selection and VAT obligations, always consult a qualified accountant before making decisions.

What if you registered the wrong CAE?

Using the wrong CAE code does not invalidate the short-term rental RNAL registration, but it can create inconsistencies in tax filings. The correction is straightforward: log in to the Portal das Finanças, go to “Atividade” and submit a “Declaração de Alterações” (declaration of changes), indicating the correct CAE code. The change takes effect from the date of submission.

If the activity has not yet started — and the BUE has not been submitted — it is better to correct the CAE with the AT before proceeding with registration.