Although it is still mandatory for nonresidents residing in a third country (outside the European Union or the European Economic Area) to appoint a tax representative when they are subject to tax obligations - such as the purchase of a vehicle and/or a property located in Portuguese territory, or the execution of an employment contract in Portuguese territory, or even the exercise of a self-employed activity in Portuguese territory - the Tax Authority (TA) now understands that non-EU resident taxpayers are no longer required to have a tax representative if they do not have to pay any tax in Portugal.

As so, the TA now understands that the tax law only requires the appointment of a tax representative domiciled in Portugal when, in the context of a legal tax relationship, it is necessary assistance in the fulfillment of tax obligations by taxpayers resident in third countries (nationals and foreigners) and to ensure the necessary contact between the tax administration and taxpayers, for the exercise of the rights of the latter. Consequently, and provided these requirements are met, in the act of registration and allocation of a Portuguese Tax Number to a national or foreign citizen, as a non-resident, with an address in a third country, i.e. in a country not belonging to the European Union (EU) or the European Economic Area (EEA), it is not mandatory to appoint a tax representative.

It should, however, be noted that if a citizen wishes to exercise any rights vis-à-vis the tax administration, he/she must appoint a fiscal representative. Any natural or legal person residing in the national territory may be appointed as fiscal representative. If the non-resident citizen exercises a self-employed activity subjected to VAT, the fiscal representative must be a VAT taxpayer (residing in the national territory).

As a rule, the deadline for compliance with the obligation to appoint a tax representative is 15 days, and failure to appoint a tax representative, when mandatory, as well as the appointment that omits the representative's express acceptance, is punishable by a fine of € 75.00 to € 7,500.00, making the non-resident citizen unable to exercise any rights with the tax authorities, including those of complaint, appeal or challenge

The Commercial and Corporate Law department of Belzuz Abogados is entirely available to provide clarification or advice on this matter.

Departamento Direito Comercial e Societário | (Portugal)

Belzuz Abogados SLP

A presente Nota Informativa destina-se a ser distribuída entre Clientes e Colegas e a informaçăo nela contida é prestada de forma geral e abstracta, năo devendo servir de base para qualquer tomada de decisăo sem assistęncia profissional qualificada e dirigida ao caso concreto. O conteúdo desta Nota Informativa năo pode ser utilizada, ainda que parcialmente, para outros fins, nem difundida a terceiros sem a autorizaçăo prévia desta Sociedade. O objectivo desta advertęncia é evitar a incorrecta ou desleal utilizaçăo deste documento e da informaçăo, questőes e conclusőes nele contidas.