The Importance of Tax Representation in Portugal

1 July, 2022

The Portuguese tax authorities announced that, from July 1st 2022, non-resident citizens, meaning, those who are not part of the European Union (EU) or the European Economic Area, but do have a Tax Identification Number (TIN or NIF, in Portuguese), can join the new system of electronic notifications and citations.

The announcement of the new notification system generated enthusiasm in the international community, as this new model aims to facilitate access to information and, in some cases, may exempt certain non-resident taxpayers from the obligation to appoint a tax representative.

The non-mandatory designation of a tax representative, however, will only serve non-resident citizens with a Tax Identification Number (TIN), but who do not have any tax legal relationship with Portugal. This is the case, for example, of spouses married under a regime of separation of property with non-resident citizens.

Despite the update of the finance portal being considered an advancement towards a less bureaucratic administration, 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.

If you have any doubts, feel free to contact your case responsible. We will continue to inform our investors of all new developments in this matter.


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