Fiscal Representation

[sanreen]

Due to the new rules on Fiscal Representation, could anyone let me know how you go about cancelling your fiscal rep. Our fiscal rep only paid our annual rates on our apartment. We would like to get our rates notice sent to our address in Carvoeiro, how do you go about it?

[e-richard]

All is revealed at http://www.carvoeiro.com/finance/Fiscal ... 0residents

[sanreen]

Thanks Richard.

[joeysoap]

my fiscal rep has now informed me that my annual renewal fee is now due. €150+vat = €184.50. extra for returns if required. fair enough

however this time he is also offering 5 years for €495+vat which is a saving of more than €300 over the 5 years. sound good. even sounds great.

except that if a good many of his clients take up the offer and othesr leave to take care of their own fiscal responsibilites, he may not have a steady income stream to maintain the business over the period. and then I would be up the creek without a paddle.

assuming fiscal reps are licensed, but is there any financial watchdog/regulator who looks after the interest of clients in the case of a fiscal rep. who ceases to trade?

[pat anderson]

Just to point out we nearly had problems with regard to having a fiscal rep. When we bought we had not yet become residents, we had still to move over ( which we did 2 weeks later after the purchase was finalised ) and at the time it wasn't so easy or a quick to do, so our abogardo suggested we put his name down.

A couple of months later we applied ourselves for residencia but for 4 years let it ride that he was down as our fiscal rep and each year pay him the property rates plus another 70 euros for him to take care of it, just laziness I guess . Anyway when we went to sell and went to him for help he got very shirty and said we couldn't claim to be residents when it came to capital gains as he was still our fiscal rep and it should have been in our name, if we had indeed been residents and he wasn't the police but if they check we could be in trouble .

Infact he was so nasty about it we went somewhere else . Via going to the financas to change the details to our name and address, it doesn't seem to have been a problem in the end as our capital gains tax has been based on us being residents but just in case I would advise all residents to not have a fiscal rep but to deal with it themselves.

[joeysoap]

Hi Pat,,

If I was resident I would not have a fiscal rep, but I am definitely non resident. I know you no longer require a fiscal rep but the 1/2 yearly invoices for tax payment would more than not prove a problem - being in portugal at the right time to get them might prove more bothersome than the yearly year fee but it's something I will look into in the future when everything becomes more clear.

I was trying to find out if after paying the fee you have any financial protection by way of regulator or financial ombudsman in the case of the fiscal rep. doing a runner.

[Bruce Wallis]

According to our solicitor, if you are a property owning NON-resident, you still need to have a Fiscal Rep

[e-richard]

Your solicitor wouldn't happen to also be your fiscal rep, would he, Bruce ?

[biffa]

The change in the law is pretty clear - or at least as clear as any change here is! (in fact the actual law has not changed - yet!). As far as the tax department is concerned, if you are resident in an EU or EEA territory, you can avoid appointing a fiscal rep. However, how it all works in practice without one is anyones guess and a little like Russian roulete at this stage!

[Bruce Wallis]

Your solicitor wouldn't happen to also be your fiscal rep, would he, Bruce ?

Funny you should say that Richard!

[Farol]

I was trying to find out if after paying the fee you have any financial protection by way of regulator or financial ombudsman in the case of the fiscal rep. doing a runner.

Given that anybody can act as a fiscal rep there clearly is no protection. Your only protection might come from their bigger role as say a solicitor or accountant where you might be protected by their professional indemnity. If you use your property manager and he does a runner with your money then I doubt you would have any protection.

[biffa]

It is not quite correct that "anybody" can act as fiscal rep. It has to be a person or entity that is tax resident here and in respect of fiscal representation for a company must be an entity that is IVA registered.

Irrespective of any vested interest I may have, it is NOT a great idea to get this handled by a person who is not totaly fluent in Portuguese and also conversant with the tax system. Mistakes can be very costly!

[RichardHenshall]

... It has to be a person or entity that is tax resident here and in respect of fiscal representation for a company must be an entity that is IVA registered. ...

It's hardly a guarantee of suitability or financial security.

I would be more concerned that the notion of paying in advance for 5 years of fiscal representation is misguided, given that it appears that we may not need to have fiscal representation in the future.

[biffa]

Agreed! Who knows where one will be or what the situaton may be in 5 years. Things change here on a daily basis!

[joeysoap]

Agreed! Who knows where one will be or what the situaton may be in 5 years. Things change here on a daily basis!

agreed again. I might not live 5 years. the fiscal rep might not survive for those 5 years. I might wish to clear off before the 5 years. I might even totally relocate here within the 5 years (ok, unlikely but still possible) and look after my own fiscal affairs.

to misquote dolly parton - one day at a time sweet Jesus and

and Matthew - sufficient for today etc etc