The legislative changes about fiscal representation came into effect on 1st January 2012. Fiscal Representation became optional for EU and EEC citizens who are Non-Resident in Portugal, but the requirement stays unaltered for other nationalities. However, keeping your fiscal representative may be a wise choice to make.
What can the fiscal representative do for you?
- Your Fiscal Representative answers to the Portuguese Tax Office (Finanças) on your behalf. So if you opt not to have a Fiscal Representative, you will be fending for yourself;
- If you let your property to holidaymakers or conduct another type of business in Portugal, you may still want Fiscal Representation to satisfy the underlying commercial requirements of the activity, e.g. filing your annual income tax return, settling the tax demand, handling an audit by Finanças etc.;
- Your Fiscal Representative can continue to receive and settle your “IMI” (property Rates) demands and assist in interpreting and handling any notices issued by Finanças. Furthermore, all communications sent to you direct will be in Portuguese, not English;
- When you come to sell your property, you will need to sort out Capital Gains Tax obligations in Portugal. Your Fiscal Representative can help keep the CGT assessment to a minimum whilst meeting all reporting requirements;
- Your Fiscal Representative will take charge of your compliance needs, keep you informed and back you up in a foreign land where you can easily be vulnerable. With his knowledge, experience and know-how working for you, a Fiscal Representative can give you the support that you need to make the most of your investment in Portugal, whilst saving you money in taxation by helping you to pay the legal minimum.
Whether buying your first holiday home or cashing in your property investment, choose a professional fiscal representation service with experienced specialists, who will guide you through the process, streamline frustrating bureaucracy, and save you many euros in legally avoidable taxation.
The information was presented by Eurofinesco company – the expert in Fiscal & Expatriate Services
For further information please contact: fiscalrep@eurofinesco.com
06.04.2016
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