What is a NIF?
It is essential to get acquainted with Portugal’s tax laws and acquire a NIF if you are an expat or foreign national living in Portugal. The NIF is a special tax identification number issued by the Portuguese Finanças (Finance Office) to people and companies in Portugal, required for multiple purposes, typically involving finances. NIF is an abbreviation that stands for Numero de Identificacao Fiscal (Fiscal Identification Number). It is in a way the equivalent of a social security number or tax identification number in the US.
Why do I need a NIF?
Everyone over the age of 18 residing in Portugal, both citizens and foreigners, must have their own NIF. You will need a NIF even if you are not residing in Portugal or don’t intend to reside in Portugal, but you plan on doing any transactions that involve money, such as those described below. The NIF is necessary for several financial operations, from major transactions such as buying a house to the smallest activities such as receiving a package from overseas.
Here are some common transactions that require a NIF:
- establishing a bank account
- purchasing or selling real estate
- paying taxes
- receiving income, including social security benefits
- renting an apartment
- setting up utilities
- getting a driver’s license
- getting a mortgage
- buying a car
- receiving a package via customs
How do I get a NIF?
According to recent amendments, a foreign person who isn’t a resident in Portugal may obtain a NIF without the need for a fiscal representative, provided that person has no tax liabilities and does not own any tangible or intangible assets, such as cars, homes, or bank accounts, in Portugal.
However, the person will only have fifteen days to designate a fiscal representative after the purchase of any such products or the generating of revenue inside the nation to avoid paying a fine of up to 7,500 euros. To acquire assets or generate revenue inside the country, it is typical for people moving to Portugal to get a NIF with a fiscal representative.
Although obtaining a NIF might not be that difficult, you should still be aware of the criteria and steps required. The detailed instructions for obtaining your NIF, or Portugal’s tax identification number, are provided below:
Do I qualify to receive a NIF?
You must satisfy the following requirements to be qualified for a NIF:
- You must have a valid ID (passport, EU identification card, temporary resident permit, etc.)
- If you reside in Portugal, you must have proof of address in Portugal (bank statement, rental agreement, etc.)
- If you don’t reside in Portugal, you must have proof of residence outside of Portugal (bank statement, utility bill, etc.)
You could also be asked to provide further paperwork if you’re a foreign company owner or a self-employed person, such as a certificate of incorporation or evidence of business operations. It is important to keep in mind that there could be certain exceptions, such as for those who are in Portugal on a tourist visa or are there for a little period. In certain situations, you may be able to submit an application for a provisório NIF, commonly known as a temporary NIF.
What documents are required for NIF applications?
You must provide the following documents at the time of application for your NIF:
- A valid passport or another type of identification that is accepted
- A valid visa or residence permit, if applicable
- Proof of residency
- Any further paperwork needed by the Portuguese government, such as a certificate of incorporation or evidence of commercial activity that are for businesses or self-employed individuals
You should remember that every piece of paperwork must be submitted either in its original form or as a certified copy. In general, photocopies and digitized versions are not allowed. You may assure a quick and easy application procedure and get your NIF quickly by compiling all of the required paperwork in advance.
How do I apply for a NIF?
Applying for a NIF in Portugal
Two basic methods exist for applying for a NIF while in Portugal:
- Online application: Through the website of the Portuguese tax authorities (Autoridade Tributária e Aduaneira, ATA), you may submit an online application for a NIF. You must establish an account and submit the required paperwork and information to accomplish this. Although the online application method is often quicker and more practical, it may not be offered for all NIFs or situations.
- Application in person: You may submit your application in person at a local tax office (Finanças) if you are unable to do so online or would like to do so. You must present all required paperwork and make any appropriate payments. If you have questions or need help with the application process, going in person may be a viable alternative even if it takes longer and requires more work.
Applying for a NIF from outside of Portugal
- Use a company that provides this service for a fee, such as Bordr, NIFOnline, NIFNow. This is the easiest way to get a NIF while living outside of Portugal.
- Use a fiscal representative to apply for you. You must find someone to be your fiscal representative, who resides in Portugal and has a tax identification number.
- Use a proxy person designated through a power of attorney, who lives in Portugal and has a tax identification number.
- Do it yourself by sending a letter template for residents outside of Portugal to the Tax and Customs Agency, alongside your valid ID and proof of residence. You will also need a fiscal representative.
No matter whatever approach you choose, it’s essential to adhere to the directives and specifications of the Portuguese authorities and to offer correct and comprehensive information. You may successfully apply for a NIF and complete your tax requirements in Portugal by doing this.
How long does it take to get a NIF?
Normally, it’ll take a few days to several weeks to process a NIF application. Even while the procedure may go more quickly if you apply online, it is still essential to give yourself adequate time for your application to be reviewed and your NIF to be provided.
Several variables, including the application method (online or in person), the NIF type (individual or corporation), and the workload of the Portuguese tax authority, affect how quickly NIFs are issued.
You may be able to ask for accelerated processing if you need your NIF right away or if you’re in a hurry. This alternative, meanwhile, isn’t always accessible and can cost more. By being aware of the processing period for the NIF issue, you may make appropriate plans and guarantee that you will get your NIF in time to meet your tax responsibilities in Portugal.
How do I activate my NIF?
Once you obtain your NIF, you can activate it in several ways:
- Online activation: If you requested your NIF online, you may be able to do it using the ATA (Autoridade Tributária e Aduaneira) website. You must sign into your account and adhere to the given instructions to achieve this.
- Activation in person: You may activate your NIF by going to a local Finanças office if you applied for it in person or are unable to do it online. You will need to provide your NIF, any further documentation, and any necessary costs.
- Postal activation: You may sometimes need to activate your NIF by mail after receiving it in the mail. You must accomplish this by adhering to the Portuguese government’s guidelines and mailing the required paperwork and money.
Whatever way you use, it’s essential to adhere to the directives and specifications of the Portuguese authorities and activate your NIF as soon as you can. Once you have activated your NIF, you can start utilizing it right away.
Using your NIF for Portuguese tax reasons
It is necessary to comprehend how to utilize your NIF for tax reasons if you are a foreign citizen or expatriate living in Portugal. When you are utilizing your NIF for tax reasons in Portugal, keep the following information in mind:
- Your NIF is used to identify you for tax purposes and track your tax obligations and payments.
- All tax-related paperwork and papers, including tax returns, invoices, and receipts, must be filled out using your NIF.
- You could be required to show your NIF to businesses in the public and commercial sectors as well as financial institutions like banks and insurance providers.
- Depending on your tax residence status and other conditions, you could have to pay taxes on your income, property, and other assets in Portugal.
- Depending on your unique situation, you can be eligible for tax credits, deductions, and other advantages.
You will be able to complete your tax duties and use any available tax advantages by being aware of how to use your NIF for Portugal tax reasons listed above.
