Fiscal representative in Portugal
Portugal requires businesses and individuals from outside the European Union (EU) and European Economic Area (EEA) — which includes all EU countries plus Iceland, Liechtenstein, and Norway — who have tax obligations in the country to appoint a local fiscal representative. This representative acts as the official liaison with the Portuguese Tax Authority (Autoridade Tributária e Aduaneira), ensuring compliance with value added tax (VAT), income tax, and other fiscal requirements.
The fiscal representative is responsible for receiving official communications, submitting tax and VAT returns, paying due taxes, and responding to enquiries or audits on behalf of the taxpayer. They are jointly and severally liable for any tax obligations, penalties, or interest that arise from non-compliance.
Foreign companies or individuals engaging in taxable activity — such as property ownership, rental income, business operations, or VAT-liable sales — must appoint a fiscal representative based in Portugal if they are non-resident. This empowers the tax authorities to effectively administer and enforce obligations. Non-EU individuals or entities may be waived from appointing a fiscal representative if they subscribe to electronic communications via the official Finance Portal (e-notifications) and do not carry out self-employed activity in Portugal. In such cases, the tax authority can reach them without requiring a representative.
The fiscal representative may be any individual or professional entity residing in Portugal registered as a taxpayer. Appointing a professional (e.g., lawyer or accountant) is strongly recommended due to the fiduciary responsibility involved. If required, the representative must be formally notified to the tax authorities.
Failure to appoint or improperly replacing a required representative can result in penalties ranging from €75 to €7,500 and may trigger delays or loss of rights to tax relief such as property-related exemptions.
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