What is the Número de Identificação Fiscal (NIF) and why should affluent expats know about it?

A Portuguese NIF, or Número de Identificação Fiscal, is a taxpayer identification number used in Portugal. It is a unique nine-digit number assigned to each individual or company. For affluent expats looking to apply for the Non-Habitual-Residency (NHR) tax regime, they must first have an NIF. The NIF is also used for a variety of other purposes, including:

• Filing taxes

• Opening a bank account

• Buying or selling property

• Signing a rental agreement

• Applying for a social security number

• Registering a child for school

• Conducting any other type of official business in Portugal

How to apply for Número de Identificação Fiscal (NIF)

To apply for a Portuguese NIF online, you will need to create an account on the Portuguese tax authority's website. Once you have created an account, you will need to provide the following information:

• Your personal information, including your name, date of birth, and passport number.

• Your contact information, including your email address and phone number.

• Your proof of address in your home country.

Once you have provided all of the required information, you will need to submit your application. The Portuguese tax authority will then process your application and send you your NIF by mail.

Benefits of having a Portuguese NIF

There are several benefits to having a Portuguese NIF, including:

• Many banks in Portugal require a NIF to open a bank account.

• Buying or selling property in Portugal becomes easier.

• It is easier to sign a rental agreement in Portugal.

• Helps with the application for a social security number in Portugal.

• Helps with the process of registering a child for school in Portugal.

• Conducting any other type of official business in Portugal becomes easier.

Cost and processing time

There is no fee to apply for a Portuguese NIF. The processing time for a Portuguese NIF varies depending on how you apply. If you apply in person, you should receive your NIF immediately. If you apply online, it may take up to two weeks to receive your NIF.

Fiscal representative

Non-EU residents used to need a tax representative in order to apply for and maintain a NIF. However, as of July 2022 this is no longer needed, but it can still make the process of obtaining the NIF easier. If you're trying to obtain a NIF remotely, or if you just want to skip the long lines at SEF, it might still be worthwhile to get it done for you.

The Importance of a Portuguese Bank Account

Opening a Portuguese bank account is an essential step for affluent expats relocating to Portugal. It facilitates everyday transactions, streamlines bill payments, and provides a secure platform for managing finances.

A Portuguese bank account is also crucial for receiving salary payments, investing in local ventures, and establishing a credit history in Portugal. Moreover, it simplifies tax payments and enables seamless integration with Portugal's financial system.

Other factors to consider include:

• Non-EU residents may need to provide additional documentation, such as a visa or residence permit.

• A NIF is also required to apply for a Portuguese driver's license and to register a vehicle in Portugal

• The processing time for a Portuguese NIF may vary depending on the workload of the tax office

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Disclaimer: The guidance above should not be fully relied upon and does not constitute formal instructed professional advice. In relation to tax advice in Portugal, please engage and instruct a regulated professional for all tax advice and structured financial planning. Please contact Portugal Pathways if you would like an introduction to one of our professional advisors.

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