Who Needs a Portuguese NIF Number?

This is our second post about the NIF number as we feel it’s important to share this information with those of you who are really serious about moving to Portugal or buying a property in Portugal.

So, Who Needs a Portuguese NIF Number?

Residents:

All residents in Portugal, including both Portuguese citizens and foreigners with legal residency, such as the D7 visa, Digital Nomad visa, student visa etc, are required to obtain a NIF number. This includes those who plan to live in Portugal permanently or for an extended period, as well as those who hold temporary residence permits.

Non-Residents:

Non-residents engaging in specific activities within Portugal, such as employment, property ownership, or business operations, need a NIF number. It is necessary in order to ensure compliance with tax regulations and facilitate these activities.

Foreign Investors:

Individuals investing in Portuguese assets, such as real estate, stocks, or other financial things, are required to have a NIF number. This allows them to be properly identified for tax purposes and enables them to fulfill their tax obligations related to their investments. In fact, this is the first thing we recommend our clients to get even before we start scouting. Having a NIF number already will help streamline the property buying process.

Benefits of Having a Portuguese NIF Number:

Compliance with Tax Regulations:

Holding a Portuguese NIF number ensures compliance with the country's tax regulations. It allows individuals to fulfill their tax obligations accurately, avoiding penalties and legal complications.

Access to Services:

Having a NIF number grants you access to a wide range of services in Portugal. This includes healthcare, education, banking, insurance, memberships to fitness establishments, telecommunications, like a cellphone plan, and other essential services where identification and tax compliance are required.

Seamless Financial Transactions:

With a NIF number, you can easily open bank accounts, conduct financial transactions, and engage in business activities within Portugal. It streamlines the process of acquiring financial products and services.

Employment Opportunities:

A NIF number is often a prerequisite for employment in Portugal. Holding one expands job opportunities and facilitates the hiring process, as employers can easily fulfill their tax and legal obligations when hiring people with a valid NIF number.

Property Transactions:

As we mentioned earlier, a NIF number is essential for purchasing or selling property in Portugal. It allows for a smooth and legally compliant process for real estate transactions. With this, you’re able to fulfill your tax obligations and register ownership properly.

Legal Compliance:

A NIF number also establishes credibility and trust, both for personal and professional purposes, and showcases a willingness to adhere to the tax and administrative regulations of Portugal. When renewing your residence visa, it is possible that the government will check to see if you’ve been recording your NIF number while making purchases as a way to ensure you’re contributing to the economy. This is why we recommend always registering your NIF when you’re making purchases at the supermarket, signing up for a gym, or even dining out.

Até já,

Mia and Rafael