Do you still need a fiscal representative?

On the 5th May 2011, the European Court of Justice ruled that Portugal can no longer force EU nationals to appoint a fiscal representative in Portugal, as this violates the rights of free

circulation of people and capital. However, individuals or companies who reside outside the EU must still appoint / retain a fiscal representative.

EU nationals can choose either to appoint a fiscal representative or opt to register themselves directly with the tax department giving their home country address.

Anyone opting to cancel their existing fiscal representative in order to become EU registered must go personally to the tax department to deal with the cancellation. From then on the Lisbon central tax office becomes their representative and all tax department correspondence will be sent to them directly.   Note that all correspondence will be in Portuguese!

Tax department notifications and tax demands have very strict deadlines and it can be unwise for individuals to choose to handle their fiscal affairs themselves.  Failure to reply to notifications can lead to large fines, and interest and penalties are applied to any tax bills paid after the deadlines.  These can place your property at risk.  Unpaid taxes lead to a charge being placed on the property for an eventual sale for debt recovery.

Sovereign continues to provide fiscal representation services ensuring their clients are compliant and 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 unexpected 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 clarification.

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.