# Tax Query on Rental/Tax Representation



## Grannysue (Jan 5, 2011)

I know you guys will clarify for me. This is following discussions with an accountant who I think has misunderstood what I have told him.

Regarding renting out your property in Portugal I was paid in the UK to my named bank account in Sterling. This was for one year only. I want to confirm that I can declare the rental/less costs etc in my UK Tax Return and that thereafter I DO NOT have to declare to this to tax uuthority in Portugal due to the "dual" treaty - is that correct. It will not be a large amount once deductions have been made. He told me I would have to declare to both!! He also advised that I would need a tax representative to deal with this. Our Lawyers have acted, and we have paid for Tax Representation Fees in relation to our property tax and I have a fiscal number. Therefore the lawyers are my tax representatives - is that correct. I am sorry if this is a bit long winded but I have been on HRMC website and in this forum. Your assistance is appreciated


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## canoeman (Mar 3, 2011)

Grannysue said:


> I know you guys will clarify for me. This is following discussions with an accountant who I think has misunderstood what I have told him.
> 
> Regarding renting out your property in Portugal I was paid in the UK to my named bank account in Sterling. This was for one year only. I want to confirm that I can declare the rental/less costs etc in my UK Tax Return and that thereafter I DO NOT have to declare to this to tax uuthority in Portugal due to the "dual" treaty - is that correct. It will not be a large amount once deductions have been made. He told me I would have to declare to both!! He also advised that I would need a tax representative to deal with this. Our Lawyers have acted, and we have paid for Tax Representation Fees in relation to our property tax and I have a fiscal number. Therefore the lawyers are my tax representatives - is that correct. I am sorry if this is a bit long winded but I have been on HRMC website and in this forum. Your assistance is appreciated


Not totally, if you rent property or earn money as a Non Resident in Portugal you are required to file a tax return, even if it has been paid into your UK account. The exchange rate at the time of payment is used in return.

The Portuguese tax year runs Jan to Dec. You would also need to declare in your UK return, bear in mind the Portuguese tax year.

The dual treaty only kicks in if you pay tax on that income in Portugal then the payment would be allowed if you had a UK tax liability on the same money.

There has just be a judgement in the EU courts that say you no longer need a Fiscal Representative, but you will need to check with the tax authorities and submit new contact details. 
A lot will depend on your circumstances and whether you want someone to look after your affairs here or yourself, it would be certainly cheaper not to have a FR, all utilities can be paid by D/D or online as can your rates. If your lawyer is acting as your FR he probably has the online tax registration already which you can get from him. You could complete a tax return online or you might need the help of an accountant at least for the first year.


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