FISCAL REPRESENTATIVE – UPDATED MAY 8, 2021
Fiscal Representative, official information
With Brexit now a reality and Great Britain effectively out of the European Union, this means that GB is not a third country. There are ways in how this will affect UK residents with interests in Portugal (like property). One of the most pressing issues needing attention is the need for a fiscal representative.
Who does this apply to:
- Residents in Great Britain, that have a Portuguese Tax Number (NIF) and own property, for example.
- Nationality is not relevant, either you’re British, Portuguese or any other nationality. You will need to nominate a Fiscal Representative, if you meet the conditions of the point above.
- A Fiscal Representative can be anyone resident in Portugal. It could be a friend or family, as long as they accept the responsibility of receiving communications and dealing with your taxes.
- If you do not have friends and family, you can nominate someone like an accountant, solicitor or lawyer. For this, you will obviously have to pay for the service.
- You can nominate your Fiscal Representative online, at the Finanças portal, as long as you are registered. You will need to know their NIF.
- Once you have done this, they will need to accept the nomination online as well.
The deadline for British residents to nominate a Fiscal Representative is the 30th of June 2021. After this, you may be subject to fines that can go up to €7,500.
For British residents that are looking to buy property in Portugal now, the need for a fiscal representative is immediate.
Here are the official links from the Portuguese Tax Office (in Portuguese), regarding this subject:
- Implicações no registo dos contribuintes após a saída do Reino-Unido da União Europeia (portaldasfinancas.gov.pt)
- BREXIT (portaldasfinancas.gov.pt)
- Despacho n.º 514/2020-XXII-SEAAF, de 23/12 (portaldasfinancas.gov.pt)
News sites in Portugal are reporting that the deadline may be extended, but this is not certain.
The law itself also allows for people that are already registered for electronic notifications from the Portuguese Tax Office not needing a Fiscal Representative. But the Government seems to be ignoring this fact, at the moment. It’s also a bit confusing who this exemption applies to, as news sites have reported it only applies to Portuguese citizens residing in third countries.
We’re sure the situation will become clearer over the next few weeks and we will be posting information as we become aware of it.
If you have any doubts or questions, speak with your accountant in Portugal or for example, Blevins Franks Portugal.
IMPORTANT UPDATE MAY 2021 – The Portuguese Government has now decided to extend the deadline to nominate a fiscal representative until the end of June 2022. In the meantime they expect to enable an electronic notification system that will do away with the need for a Portuguese resident to be nominated. This update has not yet been published on the Finanças website, as far as we can see. But it has been circulated across reputable newspapers. We’ll keep you updated with any developments. Please note that this deadline extension is only applicable to individuals that were already registered before Brexit. For any people getting a NIF now, the need to nominate a fiscal representative is immediate.