As a consequence of Brexit, thousands of British citizens with a second home in Portugal will be obliged to appoint a tax representative until June 30, or face a fine of between €75 and €7,500.

According to authorities, the need to appoint a tax representative – in short, any Portuguese resident or entity responsible for receiving and keeping correspondence related to income and contributions in Portugal and communicating them to the non-resident – has taken many British homeowners by surprise.

“If you forget to pay the IMI [Municipal Property Tax], it can be forfeited and the house can be seized and sold at public auction without notification because the owner does not have a tax representative. The bank can also block the account, within the regularization framework,” said lawyer Miguel Reis to the Lusa news agency.

Christina Hippisley, director general of the Portuguese Chamber of Commerce in the UK, noted that many British second home owners in Portugal already have a tax representative, especially if they lease their property.

“However, some owners of second homes in a resort or condominium or who use the property themselves exclusively may not yet have fulfilled the new legal obligations. We estimate that up to 15,000 British owners of a second home in Portugal may be affected,” said Hippisley to Lusa.

If you own a home in Portugal or are planning to, please speak to your legal representative or contact the team at Algarve Home Sales.