Portuguese tax representation no longer required for non-EU residents

Up until now, anyone with a Portuguese tax number (NIF) living outside of the EU, Norway, Iceland, and Liechtenstein, were required to hire a fiscal representative, regardless of whether they have tax obligations in Portugal or not.


This is a companion discussion topic for the original entry at https://nomadgate.com/portuguese-tax-representation-no-longer-required-for-non-eu-residents/
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Thomas - this is certainly welcome news. Can you include a link to the official announcement of this change?

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There seems to be some confusing information on this.
E.g. IAServices suggest that even with after the new notification system is activated, you’d still need a tax rep:

“the appointment of a tax representative continues to be mandatory for non-resident citizens who, after the assignment of a TIN as non-residents and while residing in a third country, remain or become the subject of a tax legal relationship in Portugal. This way, owning a property is considered an example of tax legal relationships.”

However, it is not clear to me for what purpose I should retain the tax rep, if I will be able to receive all tax info electronically and directly on Portal das Financas?

@dblunt Sure, here’s the announcement:

@tommigun Yeah, I think the communication could have been clearer. However, reading the official announcement I can’t understand it any other way than what we’ve written in the article.

From the announcement (translated, emphasis mine):

Portuguese taxpayers residing outside the European Union, Norway, Iceland or Liechtenstein will be able to join the new system of electronic notifications and citations on the Finance Portal from 1 July. With this accession, all taxpayers residing outside those countries can waive the designation of tax representative.

Taxpayers residing abroad who do not maintain any legal-tax relationship with the country are already exempt from appointing a tax representative in Portugal.

Actually, it seems that the rule about non-EU/EEA residents without any legal-tax relationship with Portugal not needing a tax representative is actually not a change of legislation, but a new interpretation of the existing rules by the tax authorities:

On the other hand, the waiving of the tax representative requirement for those that subscribe to notifications through Portal das Finanças was implemented through a decree law passed on June 15 (see #3):

And here’s the actual decree-law:

https://dre.pt/dre/detalhe/decreto-lei/44-2022-185838981

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Thanks for the link to the official announcement. The second sentence of the announcement, with the text “all taxpayers” seems clear. The last sentence of the announcement seems to just call out that a subset of all taxpayers were already exempt. I’ll ask our lawyers, who are also our tax representatives, for their opinion. Of course they have a vested interest. We have until November before we have to pay the annual fee to them.

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I reached out to IAS and they will actually publish an update tomorrow as the Portuguese tax authority has clarified that indeed all non-EU/EEA residents can avoid assigning a tax representative, with only one exception: Those with “economic activity” in Portugal. I assume this refers to people running a business in Portugal.

That being said, if your law firm is taking care of all the tax stuff on your behalf (especially if you own real estate in Portugal), it may not be beneficial to opt out of their tax representative service. Otherwise they may not have the information needed to take the proper action on your behalf. But everyone’s situation and needs will likely vary on this point.

Edit: Here’s IAS’ updated article: NEWS UPDATE - The Importance of Appointing a Tax Representative in Portugal

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