Accountant in Madeira: Top 4 Reasons for Having one

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Accountant in Madeira: Top 4 Reasons for Having one

by | Thursday, 21 July 2022 | Immigration, Personal Income Tax

accountant in Madeira

If one is considering settling in Madeira Island, or already settling as a resident, then one must hire an accountant in Madeira. Did you know that you might be liable to tax reporting obligations and potentially tax patients as a legal resident?

1. Obtaining tax consultancy

Many expats have difficulty obtaining high-quality, objective counsel. People familiar with your unique situation, and even worldwide personal income structure, maybe too close to offer an objective opinion, especially if different jurisdictions are involved. Conversely, those who provide a one size fits all solution typically lack a sufficient grasp of your specific circumstances to give their perspective any credence.

A board-certified accountant in Madeira, together with an experienced international tax lawyer, who interacts with a wide variety of firms and expats, such as those within the MCS team, is better equipped to analyse your situation comprehensively. Expats can use such experience to detect hazards and uncover possibilities concerning their situations.

2. An Accountant in Madeira assures local legal compliance

A board-certified accountant in Madeira can also assist you in maintaining legal compliance. This involves ensuring that your tax returns are filed on time but can also entail other aspects of the income you generate abroad or intend to generate within Portuguese territory, which is governed by rules and regulations. Even if you are exempted from specific taxation, that does not mean that you are exempted from reporting obligations.

3. Ensure You Pay the Appropriate Amount of Tax

Tax law is complex, regardless of your situation. If on top of that, combined with Social Security Law and Tax Benefits Law, it might look chaotic to a layman’s eyes. This makes it hard for the majority of individuals to both manage their relocation (investment or businesses) and remain current on tax law changes. Such a situation can result in one paying too little or too much tax, therefore putting you in conflict with the Portuguese Tax and Customs Authority or leaving you in a situation where fines and interests are due.

Likewise, a lack of knowledge of tax law and its procedures may put you in a situation where you lose tax benefits to which you missed your application deadline. For example, more often than not, expats reach our services looking to apply for the Non-Habitual Resident scheme when their application deadline has expired. Looking for advice on time may ensure that you pay the appropriate amount of tax.

A board-certified accountant in Madeira will know how to optimise your tax payments to pay what you owe and keep the remainder for savings and (re-)investment.

4. Time is money

This is an important consideration, especially for pensioners and freelancers. After all, one’s time is likely already stretched enough without the extra stress of tax returns, tax compliance, finding a home to stay in, rental contracts, dealing with immigration requirements, etc… A board-certified accountant in Madeira might assume responsibility for ensuring that your tax affairs are completed appropriately and on schedule. This will give you additional time to devote to your or other pursuits.

Many expats and organisations who lack an accountant consider hiring one an unnecessary expense. Hiring an accountant is typically a cost-saving solution when you think about the value of your time and the proportion of that time spent on accounting-related chores. The cost-saving is increased if you opt for a service provider, such as MCS, that integrates law and accounting services in one place.

This article is provided for general information purposes only and is not intended to be, nor should it be construed as, legal or professional advice of any kind.

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Other Articles

Tax advisors or a tale as old as time

Tax advisors or a tale as old as time

As tax advisors since 1995, we have heard our fair share of tales as old as the time of expats relocating to Portuguese territory for immigration and tax purposes, ending up not complying with Portuguese tax law and therefore facing unpleasant surprises (penalties,...

Real Estate Bubble in Portugal. When will it burst?

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The risk of a real estate bubble in Portugal (and Madeira Island) exists. The conclusion is from Bloomberg after an analysis carried out on 19 OECD countries, including Portugal, and taking into account factors such as the house price-to-rent ratio, the house...

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