Nomination of tax representative is no longer mandatory for non-EU residents who have no tax obligations in Portugal

According to the new position of the Portuguese Tax Authority, taxpayers resident outside the EU are no longer obliged to have a tax representative if they don’t have to pay any tax in Portugal, while the obligation remains if they have a car or house in the country.

However, the appointment of a tax representative becomes mandatory if, after being attributed a NIF as a non-resident and while residing in a third country, the taxpayer becomes the subject of a tax legal relationship, namely, comes to:

– Own a vehicle and a property registered/situated in Portuguese territory;

– Enter into an employment contract in Portuguese territory;

– Have an activity as a self-employed person in Portuguese territory;

The deadline to execute the obligation to appoint a fiscal representative is 15 days, except in the case of starting a self-employed activity, since, in this situation, the appointment must be made when registering the beginning of the activity.

Any individual or legal entity residing in national territory may be appointed as fiscal representative. However, if the non-resident citizen exercises a self-employed activity subject to VAT, the fiscal representative must be a VAT taxpayer (residing in Portugal).

Failure to nominate a tax representative, when mandatory, as well as the nomination that omits the expressed acceptance by the representative, is punishable by a fine from € 75.00 to € 7,500.00, and the non-resident citizen is prevented from exercising his rights before the tax authorities, including those of complaint, appeal or challenge.