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The Portuguese Tax Authority clarified the rules applicable to the tax representation of non-resident citizens in Portugal.
It is only mandatory to have a tax representative residing in Portugal when, within the scope of a tax legal relationship to be established, it is necessary to advise a resident in a third country (domestic and foreign) on the fulfillment of his tax obligations, and to guarantee the necessary contact between the tax administration and taxpayers.
A person must appoint a tax representative if, after having received a tax number as non-resident and as long as he continues to reside in a third country (i.e., not part of the European Union (EU) or of the European Economic Area (EEA)), he is the subject of a tax legal relationship, including:
1. being the owner of a vehicle and/or a property that is legally registered/located in Portuguese territory;
2. being the subject of an employment agreement in Portugal;
3. exercising an independent activity in Portugal.
In these cases, the appointment of a tax representative will have to be carried out within 15 days, or at the time of registry in the case of exercise of an independent activity.
For non-resident citizens residing in an EU/EEA country, the appointment of a tax representative is optional.
Thus, it is no longer mandatory the nomination of a tax representative for who, cumulatively:
(i) does not have a tax domicile in Portugal or in the European Union or in the European Economic Area (Norway, Iceland and Liechtenstein);
(ii) is not a party to one of the tax legal relationships listed in the previous paragraphs.
When a national or foreign citizen is registering to obtain a tax number as non-resident, being resident in a third country, it is not mandatory to appoint a national tax representative.