For my GV application, lawyers are charging 1,200 Euros per year for tax representation (i.e. 6,000 Euros for 5 years to file taxes while I may not even be a tax resident and have zero income in portugal - since funds will mature in 8 years time).
The services included:
a) File for all tax declarations that you may be obligated to present under the laws of Portugal (mainly Stamp Duty and Personal Income Tax); b) Assure Clientās Tax payments; c) Claim, challenge or appeal from any decision of the Portuguese Tax Authority with which the Client may disagree, provided that there are legal grounds to do so; d) Provide to Portuguese Tax Administration all information that may be legally requested.
I think this is a steep fee, but I do not speak Portuguese - may not be residing in the country - and filing taxes is a nightmare everywhere - moreover do not want to make a mistake that will harm my GV process. However 6,000 Euros feels like lawyers cashing in on GV applicantās ignorance and fear.
Does anyone have thoughts on these costs? How complicated/easy is Portuguese tax filing? Or hiring a tax consultant separately? I do know some lawyers charging 300 Euros per year too for tax representation - but then I fear there may be some hidden fees.
EUR 1,200 per year for tax is total BS.
Speak to Fiscal Point, who speciliase in tax filings. I think they will come out to EUR200-300 per year max pp.
Thatās very unreasonable. I read somewhere on NomadGate about this service that charges less than 100 Euros for getting your NIF and tax representation. I have not used them, but you may want to check it out: www.nifonline.pt
These are the costs I have been seeing as well. It is the cost of convenience and, to a certain extent, a guarantee that things will be done properly. If you want it to be hassle free because you donāt have time to manage it, thatās the price to pay. However, if you have time to be on top of it, you may find cheaper alternatives - which will require you to spend more energy and time. Again, if you can manage the time, go for the cheaper one; otherwise be ready to pay to avoid trouble.
Definitely donāt pay ā¬1,200 per year for tax representation. If all you are after is the NIF, there are services that can get you the NIF and tax representation for less than $150 a year (they wonāt be filing taxes for you).
As you pointed out, you may not even be a tax resident, and thus wonāt have to file taxes (at least until the end of your fundās term). Even if you did, you are better off hiring a Portuguese tax specialist for much less. I canāt comment on how much they run, but I highly doubt any tax specialist will charge you anything over ā¬500 for a single filing, let alone ā¬1,200.
I also donāt subscribe to the argument that paying ā¬ā¬ā¬ up front offers peace of mind and/or convenience. If you have not properly vetted the firm, they are just as likely to yank you about as a much cheaper firm. It seems like you might have to only file a tax return when you derive income through capital gains (from your fund). So you putting it off for a few years shouldnāt be that bad.
Be wary of any service that āspecializesā in GV cases. My bullsh*t meter goes on high-alert as they tend to prey on wealthy but unsavvy investors.
Update: I did approach Fiscal Point and they quoted ā¬350 for tax representation and declaration. However they were extremely unresponsive eg. for every 3 emails, I would get a delayed vague response back. I had to chase after them about which documents they wanted and etc.
Eventually I dropped them, since they were delaying my entire GV process. I would strongly suggest against going with them. They were not bad but just seem to be occupied with their other projects.
nifonline.pt and bordr seem to be economic and effective ways of pursuing NIF - however I wanted a human being to respond if anything went south so didnāt choose them.
I eventually went with Parcial Finance - who were responsive and cooperated with any limitations I had due to distance and pandemic and charged ā¬250.
I have an agency that is asking ā¬1000 for an year of tax representation. It may be fair for a person who is doing business in Portugal remotely or is earning income or may have complex tax situation.
Mine is just investing in some VC fund.
I am not clear what makes it so expensive. Seems like a blanket fee for every person approaching them.
Has anyone pursuing GV has used or completed a full year of tax representation services and do you think ā¬1000 is a fair fee.
Paying a total of ā¬6000 for the 6 years of GV process seems too high.
@tkrunning Could you share some insights about this fee and tax representation ?
What are my tax representation needs if you are not resident in Portugal, and invest in a fund? Do I still need to file taxes each year?
What is fiscal representation and what could happen if you pick a cheaper rep - I know Bordr is quoting $150 per year for fiscal representation, if you continue with them for fiscal rep (beyond the one year that is already included.)
Some lawyers are quoting 1000 euros + VAT PER YEAR. Which ends up being almost the most expensive thing, but I also donāt want to go with a cheaper provider if that causes other potentially more expensive problems later.
I find 1000 very expensive if you do not use all of services from them. Mine is 660, also expensive, because I do not use all services. It is worth only if you have some incomes in PT or you are tax-resident in PT and have some incomes that need to be declared.
You only need tax representation if you are not tax resident in Portugal
As non tax resident in Portugal, you wont need to file tax every year, not will you have any of the potential issues they are charging you for.
Once you move to Portugal and apply for RNH, you will be a tax resident and wont need the tax representative anymore. At this point you can hire an accountant to help you filling your taxes (which is a very easy process)
Under this assumptions, I have asked a Portuguese friend to be my tax represntative for free and my lawyer is charging me 100 euros or so to issue the NIF.
If you have Portuguese-sourced income, it can be taxable even if you are not a tax resident. Income from fund investments may not be taxable but income from, say, real estate almost certainly is.
For the D7 I am planning to have money invested in ETFs outside Portugal (via a Portuguese bank). I was told by the bank that there will be a 28% automatic tax over dividends. I am not sure what needs to be done in case I sell anything with a profit.
The information I have is that I can do that wihtout being tax resident (which is important so I can apply for RNH later on).