The Brexit transition has come to an end, and as from the 1st January 2021 all UK residents that hold a tax identification number in Portugal (número de contribuinte or NIF) must appoint a fiscal representative in Portugal to act on their behalf.
Why do I need a Fiscal Representative in Portugal?
Until a fiscal representative is appointed, all correspondence issued during the period prior to the appointment of the representative in Portugal, will be sent by the Tax Administration authorities to the registered address. Failure to appoint a tax representative, when mandatory, is punishable by a fine of €75 to €7,500.
What is fiscal representation?
All non-EU residents including UK expats who own property, hold a bank account or have any other commercial activity or interest in Portugal must by law appoint a Fiscal Representative that is registered with the Tax Department.
The Fiscal representative in Portugal must be registered on their behalf to receive any tax department correspondence and ensure compliance within the legal deadlines.
They are responsible for informing you of your tax obligations, applicable laws and deadlines. Notifications from the Tax Department generally require a prompt response within 10 to 15 days. If these obligations are not fulfilled, it may result in fines, among other penalties.
All non-EU residents must have a Fiscal Representative in place BEFORE requesting a Portuguese fiscal number.
Who are we?
Fiona Morton and Patricia Franks have been friends for 15 years. Fiona came to Portugal 31 years ago and immersed herself into the culture and language. She had a shop - Filine Fashions - for many years until Covid hit and everything changed.
Patricia has been in Portugal for 17 years and quickly found herself a job with Pestana. After leaving there, she started working at the Water Dog bar in Armação de Pêra and has worked there on and off for 12 years. Then Covid hit and everything changed.
Like many people involved in retail and hospitality, suddenly their income stream vanished. It was also a time for reflection and evaluate priorities and what is important in life. When Brexit then kicked in, various aspects of daily life were affected and this also included changes to some laws affecting UK residents with property here in Portugal. After lots of research and considerations, they decided that becoming Fiscal Representatives is something they could do and give a more sensible work/life balance, hence MFP Fiscal Representatives was born.
A bit of a leap into the unknown, but sometimes we need to take a risk, and with each possessing different strengths, it's a partnership that is sure to succeed with a bit of hard work and determination.
We will be offering this service at €175 per annum, or €295 for a couple.
What is not included in our annual fee?
Payment of taxes, submission of tax returns, or time spent on research or dealing with other tax enquiries.
Due to the covid restrictions the Portuguese government have extended the deadline to appoint a tax representative until 30th June 2022.
For more information about our services, or to arrange a meeting to discuss your requirements, please contact us. We are happy to help.