Finding Factual Information For Work

Many people arrive with an idea for generating an income in Portugal to top up their savings. This is a great idea, but it's one fraught with pit falls that will make you scream out loud if you get it wrong. 

It's hard to find good advice anywhere and when you first move to Portugal it's no different. You may find numerous people all too happy to tell you what to do and what not to do and hear many horror stories of fines and punishments.

Rule number 1: Visit two different accountant's that speaks your language. Why two? Well, not all accountants are as informed as they should be and you should find one that you feel offers the best service. Many old school accountants don't always play by the rules and this is something you must avoid at all costs, as if they act unprofessionally and misrepresent you to the authorities it will be you that is liable for a fine and not them. You can check the KipperTree directory and easily search for accountants in your area. You need to do this, as information, rules and regulations are constantly changing and many articles, blogs and websites are not updated as often as they should be. One false move or lack of submission of the correct documentation and the taxman will come knocking with heavy fines.

Anyway, enough negativity. Finding a good accountant is usually quite straight forward and although an expense, it's one worth making. You've probably spent a small fortune already whilst moving county, so for the sake of a couple of hundred euros its silly not to do this.

You can choose a number of options when working in Portugal and the simplest is to be a VAT exempt self-employed person. Providing when registering you state that your projected turn over will be 10,000 euros ( This figure is subject to Change) or less in your first year you will be VAT exempt. If you start your business half way through the year then you would declare 5000 euros as the fiscal year ends on the last day in December each year. Your obligation as a self employed Vat exempt person is that you must complete a Green receipt every time you invoice a client and submit the receipt to the finances. Be careful to complete this correctly with the correct code referring to your exemption. Be aware that even if you have not issued a single green receipt you must still submit your periodic VAT return. The fines for not doing this can be high.

For more detailed information regarding doing business in Portugal, please check here or for detailed information on how to fill in a green receipt click here.

This Blog is sponsored by Doticonta, English speaking accountants from the Leiria District.  For accountants from other districts, please use the KipperTree directory.

English Speaking Accountants For All Your Tax Affairs.