Tax representation, also known as “fiscal representation” or in Portuguese “representação fiscal”, is the link between a non-resident in Portugal and the Portuguese Tax Authority. In practical terms, a tax representative in Portugal acts on behalf of a non-resident in all tax and fiscal matters.
Among other responsibilities, a tax representative must ensure compliance with Portuguese tax obligations (for example, submitting Personal Income Tax Returns) and provide any information required by the Portuguese Tax Authority.
Who is required to appoint a tax representative in Portugal?
The appointment of a tax representative in Portugal is mandatory in the following cases:
Non-residents who obtain income in Portugal subject to IRS tax.
Citizens that terminate their tax residence in Portugal or are absent from Portuguese territory for a period exceeding six months.
The appointment of a tax representative is optional in the following cases:
Citizens who obtain income subject to IRS tax and reside in an EU Member State.
Citizens who obtain income subject to IRS tax and reside in a Member State of the EEA, provided that this Member State is bound to administrative cooperation in the field of taxation equivalent to that established within the EU (currently Norway, Iceland and Liechtenstein).
What do I need a tax representative for?
You are required to designate a tax representative in order to exercise the following rights:
The right to complain or appeal any decision made by the Portuguese Tax Authority.
The right to fulfil tax obligations, such as obtaining a non-resident tax identification number, keeping and maintaining the documents proving expenses and income, or submitting personal income taxes.
Who can be a tax representative in Portugal?
Any individual or corporate person, with tax residence or head office in Portugal, can be nominated as a tax representative in Portugal.
How can I appoint a tax representative in Portugal?
The appointment of a tax representative in Portugal can be done by the following means:
At any Tax Office (Serviço de Finanças): Through a nomination document (signed by the represented) and a declaration of acceptance (signed by the representative);
On the Portuguese Tax Authority Website (Portal das Finanças): In this case, it is necessary that both the represented and the representative have a Portuguese Tax Identification Number and account/password to access the website.
What are the consequences of not appointing a tax representative?
Failure to appoint a tax representative, when mandatory, is punishable by a fine of €75 to €7,500.
If you have any questions or would like to know more about tax representation in Portugal, please contact us. Our team of experienced Chartered Accounts will be happy to help you!