Invoicing a company from a person

Tax and legal
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1

Hi all

I got a question. Just recently I’ve got the first payment from the company operating my real estate in Portugal, and they expect to get the invoice from me. Could you please share some information on that or maybe a sample? Main questions are

  • whether in the invoice I should state the period of the service (basically, rent from Dec 1 to Dec 31) or the date of the actual payment made?
  • whether I assume correctly that VAT is not applied in this case?

In all other jurisdictions I get business and private income in, there’s no practice of a person issuing invoices for any kind of payments…

2

Perhaps they want a recibo verde?

I also find it a bit strange, especially if you’re not a tax resident of Portugal.

3

This sounds similar to what I do on a monthly basis with my tenant (who is a company). I had to register my rental contract on the Portal Financias website (and pay the lease stamp duty) and then I issue receipts every month from the Portal. If you have access to the website, once you login, do a search for “recibo” and choose the webpage “Recibo de Renda.” Once you set up the rental contract in the section of that page that says “Comunicar inicio contrato” then you can go into the “Emitir Recibo Renda” part of the page every time you get a rent payment and generate a receipt. I then email that PDF receipt generated by the system to my tenant. That gets put into your annual tax return due in June of each year.

4

One other thing, my tenant withholds 25 percent of the rent as taxes so that gets accounted for on the receipt.

5

That seems to look pretty much similar to what my aparthotel managing company is looking for! Same request for invoice, same tax withhold. May I ask you to share the sample of such invoice with hidden private data in PM? Also, are you tax resident in Portugal?

6

This makes so much more sense than my initial “guess”. And as it’s immovable property income it makes sense that it’s taxed in Portugal as well, so it shouldn’t matter if you’re tax resident or not.

7

I just tried to send you a redacted version by PM. Hopefully that worked. I’m not a tax resident of Portugal, but as @tkrunning notes, because it’s income based on real property, it’s taxed in Portugal regardless so I do have to pay and file Portuguese taxes based on the property income.

8

Got it, thanks a lot! Will use it for the purpose of invoicing and then filing the taxes…
I don’t have direct access to the portal yet, requested my law firm to share the access credentials with me…