The paradigm shift in families, environmental awareness, necessity, the crisis in access to housing or even personal ambitions have given rise to new ways of living. Traditional homes have been joined by alternative ways of living, also the result of advances in technology and industrialisation in construction. In modern times, there are many ways to live, whether in modular homes, prefabricated homes or even caravans/mobile homes. But is it possible to have a tax address in these types of dwellings? We explain the legal basis.
Tax address and fiscal residence: the differences
A tax address is essentially used for procedural matters – such as being notified of tax collection, correcting or submitting a certain declaration, being called to court, and so on.
On the other hand, tax residence is the key element in assessing whether a taxpayer has a strong enough connection to be taxed in Portugal. Most of the time, this connection means having their own permanent home, i.e. a property where the taxpayer stays overnight, eats meals, receives friends and family and spends their free time, for example, whether they own it or rent it.
According to Article 19 of the General Tax Law, tax residence is determined on the basis of the taxpayer’s habitual place of residence, which most of the time coincides with the taxpayer’s own permanent home.
Tax residence in motorhomes and prefabricated houses: yes or no?
The question that arises, of particular relevance, is whether tax residence, for tax purposes, can take place in motorhomes and prefabricated houses.
The concept of habitual residence, which is necessary to determine tax residence, presupposes a degree of geographical permanence, so a motorhome that is on the move in such a way as to make it impossible to determine its precise location cannot be considered tax residence. The same applies to motorhomes used for transitory purposes, such as staying at a campsite only during the summer months, when the taxpayer enjoys it.
On the other hand, a motorhome can be considered a tax residence if it is permanently allocated, i.e. if it is based or fixed in the same place for a period of more than a year, even with slight changes to where it is located. In other words, if the motorhome is geographically fixed and locatable, even if it is moved slightly to a part of the camping field or land, for example, it will always be considered to be permanently attached.
The same goes for prefabricated or modular homes which, despite not being materially fixed to the ground, can be considered permanent. In addition to this aspect, although this type of housing is acquired in a built state, it will be considered a building for tax purposes – specifically, for IMI – so there is no doubt that it will constitute a tax residence, should the taxpayer so decide.
Establishing tax residence in prefabricated or modular homes
In order to establish a tax residence in prefabricated or modular houses, they must first be duly licensed by the local council, in similar terms to the licensing process required for the construction of conventional houses, which are not mobile or prefabricated.
The decisive element for prefabricated houses to be subject to the Legal Regime for Urbanisation and Building, more specifically Article 2 on the concept of “buildings”, is the human use that will be given to the “house” or prefabricated module. If it is intended for habitation or permanent use, such as the installation of a restaurant, bar or shop open to the public, the prefabricated module is required to have the appropriate licensing process, and it is not essential for it to have characteristics of permanence and immovability from the ground – there are already decisions from the Central Administrative Courts to this effect, which determines the actions of the Municipal Councils in this regard.
Without a licence, any work carried out will be considered illegal and, as such, may be embargoed by the town hall. In this case, the legal consequence will be the obligation to demolish it or to stop using it. If this is not complied with, the offender will incur the offence of disobedience, which is punishable by a prison sentence of up to one year or a fine of up to 120 days.
