In the past, Portugal’s government required foreign residents to hire a tax representative; if they lived in a country outside of the European Union or European Economic Area (EEA). Now, however; expats living in these areas will no longer be required to hire someone to manage their taxes; making it much easier to maintain their residence in Portugal. As part of this change, the government has announced that all foreign residents who live outside of the EU or EEA are no longer required to have a Portuguese tax representative; this includes people living in countries such as the United States and Canada.
New Laws in Effect July 1
Portugal has changed their regulations so that Portuguese expats no longer need a tax representative. This includes people living in countries outside the EU or European Economic Area from the obligation of a tax representative. The new laws went into effect on July 1 and have been met with relief from the expat community. This is one less thing that Portuguese expats have to worry about when it comes to their taxes.
In the second half of 2022, taxpayers in the United Kingdom will be able to adhere to the electronic system; on the Finance Portal. If they opt for this alternative and are approved by the Portuguese Customs Authority; then they would not need to appoint a tax representative either.
No Longer Required to Use a Tax Representative
You will still be required to file your taxes in Portugal, but you will not need to use a tax representative. To file your taxes, you will need to fill out a Portuguese tax return form and submit it to the Portuguese tax authorities. You can find the tax return form on the Portuguese government website. Once you have submitted your tax return form, you will be able to pay your taxes online or at a bank in Portugal.
What About Those with Incomes in other Countries?
If you are receiving income from more than one country, you may still need a tax representative.
Speak with us today to determine if you still require a tax representative or similar service.
The Future Looks Good for Current and Future Expats Living in Portugal
The Portuguese government’s recent decision to exempt expats from the requirement of a tax representative is good news for those of us living in Portugal; so that Portuguese expats can say goodbye to tax representatives. This change will make it easier for us to comply with our tax obligations; and it will also save us money. In the future, we can expect more favourable treatment from the Portuguese government when it comes to taxes and other financial matters. This is a positive development for the country as a whole, and it bodes well for current and future expats living in Portugal.
How RHJ Accountants Can Help
We recognise more than ever that individuals and businesses from the UK and other countries may be globally mobile. We aim to make you aware of the tax-efficient opportunities, available tax relief and structure finances for life at home and abroad.
Our international team of specialists operate from offices in the UK and Portugal. We work together synergistically to provide tax efficient solutions to our clients to help them grow their business whilst keeping tax liabilities to a minimum.