In 2011, the European Court of Justice ruled that EU nationals could not be forced to have fiscal representation, as this violated the rights of free circulation of people and capital. However many chose to retain their representative for peace of mind.
So with Brexit, will UK residents once again need to appoint a fiscal representative?
The law clearly states that those who live outside the EU must appoint a representative, so it follows on that yes, UK residents will need to have a fiscal representative in Portugal. The onus is on tax payers to be aware of and to comply with the law.
Currently EU residents without repre-sentation automatically receive their tax department correspondence, including their property tax bills, at their EU address.
Sovereign believes that after Brexit, tax correspondence will no longer be sent to the UK as the system is automated to not send to non-EU countries.
Correspondence is expected to be retained by the Lisbon tax department which is the office designated for EU residents who have opted not to appoint a representative. As property owners may not receive their correspondence, this may undoubtedly lead to some individuals not paying their taxes or not responding to notifications on time, risking fines and penalties.
By the time the UK leaves the EU on 29 March it may be too late to receive the 2019 property tax bills in the UK. To avoid possible complications it is advisable to appoint a fiscal representative beforehand.
Sovereign is therefore offering a special deal to new UK customers by cutting the fiscal representation registration costs by 50% for those registering with them until the end of January 2019.
Since 1999 Sovereign – Consultoria Lda personnel have built a very close relationship with local tax departments and other institutions, which enables them to keep up to date with the ever changing fiscal demands placed on their resident and non-resident clients. With offices worldwide, the Sovereign Group is able to assist clients with all their fiscal queries, aiming to maximise clients’ tax benefits and minimise liabilities. Contact Sovereign today for more information.

For more information Tel: (+351) 282340480 or email: port@sovereignGroup.com