ARCNET

No retention for the seller, resident or otherwise; you receive the full proceeds (less any mortgage) when the deed is executed at the Notary. On the other hand, the buyer must provide receipted evidence of paying the IMT before the Notary will proceed.

Red Eric

So what would happen if the foreign-resident seller didn't know (would that be possible?), or was told, but forgot, that he had to file a tax return and pay CGT on any gain? Or any other possible circumstance involving non-payment on the part of anyone selling up and moving on, never to return?

appman999

Certainly in the case of a UK resident they would still have the liability to the full CGT in the UK with the usual penalties for failure to declare.

wellinever

But if PT AT get their tax, why would they inform any other Worldwide Tax regime?

wellinever

As a UK resident, regarding UK CGT, using my figures from post 68 above, the UK Capital Gain Tax payable would be £54,000, slightly more after 1st April 2023.(as a second home)
In PT tax would be 250,000/2 = e125,000 + 20,000 = 145,000e x 48% = e69,600 - e9000 = e58,600 / 1.15 = £51,000
So even after that shock in PT, you would still be left with another £3,000 to pay in UK
So CGT is not so different between the two. The biggest difference of course being that there is Zero tax to pay in UK, on sale of Main home, which Brit PT residents can claim, makimg zero UK tax payable

appman999

Red Eric's question regarded a non resident who left Portugal without paying tax (deliberately or by accident) rather than someone who had paid tax.

ARCNET

The Portuguese authorities will be well aware of the original purchase and subsequent sale (the Notaries are mandated to notify AT) so they would be in a position to raise an estimated assessment that could be pursued cross borders.

wellinever

is that not where a fiscal rep comes in?

appman999

Only in terms of communication, I don't believe they are responsible for payment of outstanding tax liabilities.

Red Eric

Correct.

Also, in the case of EU residents, they're not required to have a fiscal rep. Neither, come to that, are 3rd country residents, as long as they sign up to electronic notifications.

I'll take it that as per ARCNET's post, there is some facility for chasing tax debts cross borders.

ARCNET

This should provide some insight https://taxation-customs.ec.europa.e...ax-recovery_en

chislenko

Just veering off slightly, we have sold up in Portugal and understand that we will have some CGT to pay, no arguments, abide by the rules.

My question is do I need an accountant or a Fiscal Rep to do it or both?

I.e. Can one company do it all or do I need both?

ARCNET

That's your choice. In fact you don't need either if you are willing and able to complete the relatively straightforward tax return on the AT Portal.

appman999

Seconded, assuming for the 2022 tax year you don't have to declare your worldwide income. I did mine quite happily.

chislenko

Assuming I don't have the confidence to attempt doing it myself does anyone know the answer to the original question can an accountant or a Fiscal Rep perform all the calculations and make the payments or do you need an accountant to do the working out then a Fiscal Rep to do the payment?