Big changes for UK nationals with interests in Portugal
04 Jul 2022
Think about it. Since the UK voted to leave the EU in 2016, we have all become somewhat expert in dealing with uncertainty. Almost overnight, everything we perhaps took for granted was very much unknown. Whether it was how Brexit would affect residency, trade, healthcare or travel, it seemed that many of us gave a ‘collective shrug’ when asked about the future.
The good news is that the dust is starting to settle and we are emerging into a clearer, post-Brexit reality. Speaking of one key change, Ione Faria from Loulé-based tax firm Portutax, says, “One of the changes is the way that UK residents must now handle taxes in Portugal. Under post-Brexit rules, if you're a UK national with a bank account, property or commercial interests in Portugal, you must appoint a Fiscal Representative no later than 31st December 2022.”
What is a fiscal representative?
In simple terms, a fiscal representative in Portugal does what the name implies; they represent your personal or commercial tax interests in Portugal and liaise directly with the local tax office on your behalf. This involves assisting you by carrying out the following services:
- Payment of the IMI and AIMI property taxes – these are only sent to fiscal reps and not directly to individuals
- Preparation and submission of tax returns declaring rental income or capital gains
- Provide rental income accounting services
- Action correspondence for tax appeals, debts, property or residency registrations etc.
- Keep abreast of your tax position and obligations
Whilst Portugal’s official government offices often publish information in English, its fiscal regulations can be hard to understand, especially for non-native speakers. Loulé-based Portutax Lda has offered a range of accountancy and tax services for 20 years. Mainly serving the Algarve’s ex-pat community, its English-speaking team has seen an increase in demand for fiscal representation as well as related services like Rental Returns, Capital Gains Calculations and Non-Habitual Residency queries.
According to its CEO, Stuart Rodriguez, the Portuguese Government deadline is a real game-changer, “What we are seeing is the deadline encouraging individuals to seek fiscal representation to avoid hefty fines. Portutax has been operating in the Algarve for many years. We are part of the community and understand how things work here. Our clients come to us for uncomplicated advice and value for money.”
UK nationals who own property or have bank accounts in Portugal have until the 31st of December 2022 to find and appoint one. Failure to do so by this date can result in fines of up to €7,500. Email accounts@Portutax.com or call the office on +351 289 463271