Concierge fees in the Algarve: 25% excl. VAT, VAT and the real calculation

At Calyferias, the commission is 25% excl. VAT, calculated on net nightly revenue. Including VAT, that comes to 30.75% of this base, not 48%.

On Algarve owners' forums, the same question keeps coming up: how much does a concierge service really cost once VAT is added? Others describe deductions made without an invoice. This article sets out our calculation step by step, with a worked example.

What the 25% excl. VAT covers

The 25% excl. VAT is calculated on the net amount of the nights. The commission taken by the platform (Airbnb, Booking…) is deducted first. Cleaning fees are not included in the calculation: they are paid by the guest, on top.

This commission covers the full management of the property:

• professional photos at no cost and an optimised listing;
• distribution on the platforms and direct booking on calyferias.com;
• prices adjusted to the season and demand;
• meeting guests in person, including late arrivals;
• organising the cleaning between each stay;
• tourist tax collected and declared, guest registration with AIMA, invoicing;
• regular statements and access to your owner area.

There are no set-up fees and no subscription. The contract is annual, renewable, with 3 months' notice.

Step-by-step worked example

Take a booking of €1,000.00 in nights, with a platform commission of €150.00. Cleaning, paid on top by the guest, stays outside the calculation.

This table illustrates the calculation method. It is not an income estimate: income depends on the property, the season and demand.

For a direct booking on calyferias.com, there is no platform commission. The base is therefore the amount of the nights: on €1,000.00, the commission is €250.00 excl. VAT, i.e. €307.50 incl. VAT.

Why it is not 48%

The common mistake is to add the two rates together: 25% + 23% = 48%. But VAT is not added to the commission rate. It applies to the amount of the commission.

The correct calculation is therefore 25% × 1.23 = 30.75% of the net base. In the example above, €261.38 incl. VAT on €850.00 of net nights is indeed 30.75%.

Measured against the €1,000.00 paid by the guest, this represents around 26%. The reason: the platform commission is deducted before our calculation, not after.

What remains the owner's responsibility

The commission does not cover everything. To avoid surprises, here is what stays with you:

• your tax return, done by you or your accountant (we provide the statements and supporting documents);
• pool and garden maintenance;
• the Alojamento Local licence application, handled by a lawyer or a solicitador (we can put you in touch with our partner lawyer);
• the cost of repairs: our tradespeople step in within 24 to 48 hours, and above the agreed amount, you approve beforehand.

Cleaning between two stays, on the other hand, costs you nothing: it is funded by the cleaning fees paid by guests.

The questions to ask any concierge service

Whichever concierge service you choose, ask these questions before signing:

1. Is the advertised rate excluding or including VAT? 2. What base is it calculated on: the gross amount, nights net of platform fees, with or without cleaning? 3. Are there set-up fees, a subscription or listing fees? 4. Who pays for cleaning between two stays? 5. Will I receive an invoice for each commission and a detailed statement for each booking? 6. How are repairs approved and invoiced? 7. How long is the contract, and what is the notice period to leave it?

A reputable concierge service answers each of these questions in writing, before signing.

In summary

At Calyferias, you pay 25% excl. VAT on net nights, i.e. 30.75% including VAT on this base. Cleaning is paid by guests, and there are no set-up fees and no subscription. Each month, you receive a detailed statement with supporting documents.

Do you own a property in the Algarve and would like to talk about it? Discover our offer for owners or contact us: reply within 24 business hours. For the paperwork, also read our Alojamento Local licence guide.