Short-term rental calculator

Project name

Does the house pay for itself? A cash-flow model for buying a property and running it as a short-term let. Every assumption is editable, and the URL is your saved scenario.

Project
income tax on a coefficient of net revenue
Property
renovation and finishing before the first guest
a primary residence gets lower IMT brackets than an investment
due diligence, contracts, representation at the deed
deed and land-registry entry at the Casa Pronta rate
Income
For a second rentable unit on the property: an annex, an apartment, a cabin, a room let separately.
Operating expenses
guests, cleaning and the calendar handled for a share of revenue
share of gross revenue the agency keeps
electricity, water, gas, internet
IMI, the annual municipal property tax
laundry, consumables, cleaning products
AL registration, software, permits
employer cost including social charges
Airbnb, Booking and direct bookings blended
share of gross spent on your own marketing
share of gross set aside for repairs and replacements
Financing
of price when buying, of cost when building
all-in rate, fixed or variable plus spread
0,6% stamp duty on the loan amount
valuation and bank arrangement fees
Tax
6% for hotel-type stays, 23% standard; contested for a private AL
your IRS bracket, applied to 35% of net revenue
a municipal AL containment area raises the coefficient to 50%
21,4% on 20% of revenue, due from the second year
Alternative uses
on a standard residential lease
of the full-let revenue, if only the annex is let
of the fixed costs attributed to the annex
what the owner still pays under a long lease
what living in it yourself still costs
Property
Purchase price
€650.000
IMTprimary-residence brackets
€38.237
Imposto do selo0.8% of price
€5.200
Lawyerindependent, not the agency's
€2.500
Notary and registration
€1.200
Mortgage set-up0.6% of the loan, plus valuation
€3.530
Works to finish
€40.000
All-in cost
€740.667
Of which cash, day one
€285.667
Annual cash flow
Income
Gross revenue168 booked nights across the year
€34.248
IVA6% of the gross price
−€1.939
Operating expenses
Channel fees12%
−€4.110
Agency management20% of gross
−€6.850
Maintenance reserve5% of gross
−€1.712
Utilitieselectricity, water, gas, internet
−€3.000
Pool maintenance
−€1.800
Garden and grounds
−€1.200
Property tax (IMI)
−€1.300
Insurance
−€600
Linen and cleaning supplieslaundry, consumables, cleaning products
−€1.400
Accountant
−€1.200
Licences and subscriptions
−€1.000
Net operating incomeEBITDA: revenue less operating expenses
€8.138
Financing
Debt service
−€25.910
Cash flow before tax
−€17.772
Tax
IRS35% coefficient at your 40% marginal rate
−€4.523
Segurança Social21,4% on 20% of revenue
−€1.383
Net annual cash flowafter tax and debt service
−€23.678
Income by month
€0€8.370 in the best month
JFMAMJJASOND

Alternative uses

Same property, same purchase, same mortgage. Only the use changes. Annual cash flow after tax and debt service.

Full-year short-term let

−€23.678

You live elsewhere. Maximum revenue, maximum operating drag, and you are running a small hospitality business.

Annex let, you live in the house

−€26.691

The realistic hybrid at 32% of the revenue and 45% of the fixed costs — the annex needs its own licence and shares your garden and pool all summer.

Long-term let at €2000/mo

−€11.935

Taxed at the 25% flat rate. Far less work, far less revenue, and no exposure to short-stay licensing rules.

You just live in it

−€32.810

No income. This is the honest baseline — the number to compare against what renting the equivalent house costs you.

The 6% IVA rate is contested for a private AL

Accommodation in estabelecimentos do tipo hoteleiro is taxed at 6% under verba 2.17 of Lista I. Whether a registered AL moradia counts as hotel-type is genuinely contested — the cautious reading is the standard 23% rate. Switch the VAT input to 23% to see the gap; the honest move is a binding ruling from the AT before you build a business case on either number. The IVA exemption threshold is €15.000 of turnover, so this bites from roughly week six of the first summer.