Fiscal representative Portugal - What is it and do you need one? 

A fiscal representative is a person who acts on behalf of another individual or entity, such as a non-resident in Portugal.

This can include activities such as opening a bank account, signing contracts, and handling financial transactions.

In Portugal, non-resident individuals are required by law to appoint a fiscal representative for tax purposes. This representative is responsible for ensuring that the non-resident complies with Portuguese tax laws and regulations. The representative must also be authorized to act on the non-resident's behalf, which requires them to have a Power of Attorney.

FAQ about fiscal representaton in Portugal 

• What is a fiscal representative in Portugal? A fiscal representative is a person or professional authorized to act on behalf of a non-resident individual in Portugal for tax purposes. The fiscal representative is responsible for ensuring that the non-resident complies with Portuguese tax laws and regulations, including filing tax returns and paying taxes owed.
• Who can act as a fiscal representative in Portugal? A fiscal representative in Portugal can be either a professional, such as an accountant or lawyer, or a trusted individual, such as a family member or friend. The individual or professional must be appointed by the non-resident in a written document and must have the legal capacity to enter into contracts.
• Why do non-residents need a fiscal representative in Portugal? Non-residents may be required to appoint a fiscal representative in Portugal if they have a permanent establishment (PE) in the country or if they own assets, such as real estate, in the country. The fiscal representative is responsible for ensuring that the non-resident complies with Portuguese tax laws and regulations.
• What are the requirements for a fiscal representative in Portugal? A fiscal representative in Portugal must be authorized to practice in Portugal, if a professional, and must have a good understanding of Portuguese tax laws and regulations. They must also have the legal capacity to enter into contracts, have a good reputation, and be able to communicate with the Portuguese tax authorities in a timely manner.
• How do I appoint a fiscal representative in Portugal? A fiscal representative must be appointed by the non-resident in a written document, such as a Power of Attorney. The document must be registered with the Portuguese tax authorities and must be kept up-to-date.
• What are the responsibilities of a fiscal representative in Portugal? The fiscal representative is responsible for ensuring that the non-resident complies with Portuguese tax laws and regulations, including filing tax returns and paying taxes owed. They must also keep accurate records and communicate with the Portuguese tax authorities on behalf of the non-resident.*
• What is the cost of having a fiscal representative in Portugal? The cost of having a fiscal representative in Portugal can vary depending on the individual or professional chosen. Professional fiscal representatives may charge a fee for their services, while trusted individuals may not. It is important to understand the cost and responsibilities of a fiscal representative before appointing one.
• Can a fiscal representative in Portugal sign contracts on behalf of the non-resident? The powers of a fiscal representative in Portugal may be limited, and they may not have the authority to sign contracts on behalf of the non-resident. It is important to understand the limitations of a fiscal representative before appointing one.
• Can a fiscal representative in Portugal access the non-resident's financial records? A fiscal representative in Portugal must have the ability to access the non-resident's financial records in order to fulfill their responsibilities. The level of access may be limited, and it is important to understand the limitations of a fiscal representative before appointing one.
• What happens if I do not appoint a fiscal representative in Portugal when required? If a non-resident is required to appoint a fiscal representative in Portugal and fails to do so, they may be subject to penalties and fines. In addition, it can be more difficult for the non-resident to comply with Portuguese tax laws and regulations without a fiscal representative.

The tax representative must also be registered with the Portuguese tax authorities and provide them with information about the non-resident's activities in Portugal, including their financial transactions and taxes owed.

Failure to appoint a representative or comply with Portuguese tax laws can result in significant fines and penalties for the non-resident.

In order to appoint a fiscal representative in Portugal, the non-resident must choose a person who is resident in Portugal and has no criminal record.

This person can be a professional, such as an accountant or lawyer, or a trusted individual, such as a family member or friend.

Once the representative has been appointed, they will be responsible for managing the non-resident's financial affairs in Portugal, including paying taxes and filing tax returns.

They will also be required to keep accurate records of the non-resident's transactions and provide this information to the Portuguese tax authorities when requested.

What does a fiscal rep in Portugal do for you?

A fiscal representative in Portugal is responsible for several key tasks on behalf of non-resident individuals, including:

1. Tax compliance: The representative is responsible for ensuring that the non-resident complies with Portuguese tax laws and regulations. This includes paying taxes owed and filing tax returns on behalf of the non-resident.
2. Financial management: The representative can manage the non-resident's financial affairs in Portugal, including opening a bank account, signing contracts, and handling financial transactions.
3. Record-keeping: The representative must keep accurate records of the non-resident's transactions and provide this information to the Portuguese tax authorities when requested.
4. Communication with authorities: The representative is the point of contact between the non-resident and the Portuguese tax authorities, and is responsible for responding to inquiries and providing information about the non-resident's activities in Portugal.
5. Tax planning: The representative can provide advice on Portuguese tax laws and regulations and help the non-resident plan their financial affairs in a tax-efficient manner.
6. Representation in disputes: The representative can represent the non-resident in disputes with the Portuguese tax authorities or other parties, such as creditors or contractors.
7. Compliance with regulations: The representative is responsible for ensuring that the non-resident complies with all relevant regulations and requirements, such as those related to money laundering and anti-fraud measures.
8. Compliance with privacy laws: The representative must respect the non-resident's privacy and confidentiality and must only use their personal information for the purposes of carrying out their responsibilities as a representative.
9. Maintenance of records: The representative must maintain accurate records of their activities on behalf of the non-resident, including any transactions and communications with the Portuguese tax authorities.
10. Reporting to the non-resident: The representative must provide regular reports to the non-resident about their activities and the status of their financial affairs in Portugal.

Who can be a fiscal representative in Portugal and what are the requirements?

In Portugal, a fiscal representative can be either a professional or a trusted individual. The requirements for acting as a fiscal representative in Portugal are as follows:

1. Professional representative: A professional representative, such as an accountant or lawyer, must be authorized to practice in Portugal and must be in good standing with the relevant professional organizations. They must also have a good understanding of Portuguese tax laws and regulations.
2. Trusted individual: A trusted individual, such as a family member or friend, can act as a fiscal representative in Portugal. They do not need to be authorized to practice in Portugal, but they must be able to carry out the responsibilities of a fiscal representative, such as keeping accurate records and communicating with the Portuguese tax authorities.

Both professional and trusted individuals must be appointed by the non-resident in a written document, such as a Power of Attorney.

This document must be registered with the Portuguese tax authorities and must be kept up-to-date.

In addition to the above requirements, a fiscal representative in Portugal must have the legal capacity to enter into contracts and must have a good reputation. They must also have the ability to access the non-resident's financial records and must be able to communicate with the Portuguese tax authorities in a timely manner.

It is important for non-residents to carefully consider the qualifications and suitability of any potential fiscal representative in Portugal, as the representative will have significant responsibilities and obligations. Non-residents should also be aware of any restrictions on the powers of their fiscal representative, such as limits on their authority to sign contracts or access financial records.

Fiscal representative cost 

The cost of having a fiscal rep in Portugal can vary depending on several factors, such as the type of representative chosen, the complexity of the non-resident's financial affairs, and the services provided by the representative.

In general, a professional representative, such as an accountant or lawyer, may charge a fee for their services. This fee can be a flat rate, a percentage of the non-resident's financial transactions, or a combination of both. The fee can also be negotiated with the representative and may be subject to annual increases.

If the non-resident chooses a trusted individual, such as a family member or friend, as their representative, they may not have to pay a fee.

However, the representative may still need to be compensated for their time and expenses, such as travel costs and legal fees.

In addition to the fee charged by the representative, there may also be other costs associated with having a fiscal representative in Portugal, such as the cost of obtaining a Power of Attorney, registering with the Portuguese tax authorities, and maintaining accurate financial records.

It is important for non-residents to carefully consider the costs of having a fiscal rep in Portugal and to compare the fees charged by different representatives before making a decision. 

They should also consider the benefits of having a representative, such as peace of mind, compliance with Portuguese tax laws, and the convenience of having someone to handle their financial affairs in Portugal.

Reasons for not getting a fiscal rep in Portugal

In Portugal, non-resident individuals may be required to appoint a fiscal representative, depending on the nature of their activities in the country. If a non-resident has a permanent establishment (PE) in Portugal or owns assets, such as real estate, in the country, they must appoint a fiscal representative.

However, if the non-resident does not have a PE or assets in Portugal and their activities in the country are limited, they may not be required to appoint a fiscal representative.

This can be the case, for example, if the non-resident provides services in Portugal on a temporary basis or if they earn income from Portugal that is subject to withholding tax.

It is important for non-resident individuals to understand the requirements of Portuguese tax laws and regulations and to appoint a fiscal representative if required.

Failure to appoint a fiscal representative can result in penalties and fines, and can also make it more difficult for the non-resident to comply with local tax laws and regulations.

In any case, non-residents must comply with Portuguese tax laws and regulations and must file tax returns and pay any taxes owed on time, regardless of whether they appoint a fiscal representative or not.

EU countries that require a fiscal representative

The requirement for a fiscal representative varies by country within the European Union (EU). In general, non-resident individuals who conduct business or own assets in an EU country may be required to appoint a fiscal representative.

In some EU countries, such as Belgium, France, and the Netherlands, non-resident individuals are required to appoint a fiscal representative if they have a permanent establishment (PE) in the country.

A PE is a fixed place of business, such as a branch or an office, where a non-resident conducts business activities.

In other EU countries, such as Italy, Portugal, and Spain, non-resident individuals may be required to appoint a fiscal representative regardless of whether they have a PE in the country. This requirement applies to non-resident individuals who own real estate or other assets in the country, or who receive income from the country.

It is important for non-resident individuals to understand the requirements of each EU country in which they conduct business or own assets, and to appoint a fiscal representative if required.

Failure to appoint a fiscal representative can result in penalties and fines, and can also make it more difficult for the non-resident to comply with local tax laws and regulations.