Is a fiscal representative necessary for purchasing a car or property in Portugal?
In 2022, Portugal’s fiscal representation landscape saw significant changes, offering substantial relief to non-residents, especially those from outside the EU/EEA.
Under the updated Portuguese law, individuals residing in third countries no longer have the obligation to appoint a tax representative. This exemption is applicable if they opt for dematerialized notification channels, such as the electronic notifications and quotations system on the Finance Portal or the electronic mailbox.
In other words, if you are a non-EU/EEA resident, you can now buy a property or a car in Portugal without needing a fiscal representative, provided you are subscribed to these digital notification channels.
This marks a notable departure from the past when fiscal representation was mandatory for such transactions.
It’s important to note that even before this tax change, residents of the European Union or the European Economic Area (Norway, Iceland, and Liechtenstein) had the option to appoint a tax representative, making it a choice rather than a requirement, as outlined in Circular Letter no. 90057 dated 20 July 2022.
The above text, translated to English says:
“3.1 Exemption from appointing a tax representative: If the taxable person, residing in a third country, subscribes to any of the dematerialized notification channels (system of electronic notifications and quotations on the Finance Portal or the electronic mailbox), he/she is exempted from the obligation to designate a fiscal representative. This waiver does not apply if the taxable person carries out a self-employed activity in Portuguese territory, maintaining the obligation to appoint a VAT tax representative (must be a VAT taxable person residing in national territory).”
This means any non-EU/EEA resident can now own property or a car in Portugal without requiring a fiscal representative, provided they are registered with these digital channels.
However, if an individual conducts self-employed activities in Portugal, they still need to appoint a VAT tax representative residing in the country.
It’s essential to recognize that not all companies have adapted to these changes. Some are still operating based on the old regulations, charging clients for fiscal representation services.
For a more comprehensive understanding of these tax law changes, you can refer to the following official documents:
- Decree-Law 44/2022
- Circular Letter no. 90057