Can my friend be my fiscal representative?

Non Portuguese Companies must have a VAT registered fiscal representative but for individuals, if their friend lives in Portugal, and are bona fide tax residents, then in theory the answer is yes, but it is highly inadvisable.

Many ask why they need to pay an annual fee for a fiscal representative when a Portuguese resident friend could register as the representative.

The fiscal representative is the interface between the individual and the tax department, being the first point of contact for all fiscal matters and is jointly responsible with the client for any tax calculations relating to the property or individual taxes. 

So, do you want your friend as your fiscal representative to become liable for your tax debts and risk losing their assets?  Do you want them to know all your private fiscal business?

Owing to the increasing complexities and demands of the tax department it is advisable to appoint a professional firm to avoid costly tax mistakes.  Will your friend or neighbour be able to deal with the correspondence informing you about re-valuations, audits, tax refunds?  Will they be able to make appeals on your behalf against taxes or fines?  Can they prepare and submit your rental income tax return to your best advantage?  Is your friend aware of the ever changing fiscal laws to be able to keep you informed about matters that could affect you?

Most tax department notifications give 10 days for the submission of documents for audits and appeals.  If the friend is absent and the letter sits in a post box it is you who will incur fines and possibly increased tax bills.

Non payment of taxes can put your property at risk as the tax department will eventually instigate proceedings to sell the property for debt recovery – even for amounts under 100 euros!  Can you risk not receiving your correspondence in time?

Sovereign continues to provide fiscal representation services ensuring their clients are compliant.  Sovereign clients can rest assured that correspondence received on behalf of the client will be dealt with promptly and efficiently.

Too often Sovereign sees new clients who have inadvertently fallen foul of the tax department because they did not understand the correspondence received in Portuguese – so they ignored it - often with severe consequences that have led to unexpectedly high tax bills.  

Fiscal representation equals piece of mind for as little as 12 euros per month.  Do not hesitate to contact Sovereign for further information.

Sovereign - Consultoria Lda
Parque Empresarial Algarve
8400-431 Lagoa

Tel: +351 282 340480    
Fax: +351 282 342259

Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, this information does not constitute legal or other professional advice. We do not accept any responsibility, legal or otherwise, for any error or omission.