What is a Portuguese NIF number?

NIF: Who needs one? Are there benefits to having one?

If you’ve been thinking about applying for a visa, renting or purchasing a property in Portugal, you’ve most definitely seen the term “NIF number” mentioned everywhere. We get asked a lot, especially with non-European clients, what’s the deal with the NIF number?!

The Portuguese NIF number or número de identificação fiscal (NIF), plays a fundamental role in fulfilling tax obligations within the country. With this number, you can accurately file tax returns, report income, and fulfill tax liabilities. Furthermore, you’ll need it for almost everything. For instance, for opening a bank account, renting an apartment, buying a car, purchasing health insurance and much more. The NIF number allows the Portuguese tax authorities (Autoridade Tributária e Aduaneira) to track and process tax-related information effectively and it serves as your identification for various transactions and interactions with Portuguese authorities.

Here are some of key uses of the NIF number:

Employment:

Obtaining a Portuguese NIF number is a prerequisite for employment in Portugal. Without one, you simply cannot legally work in the country. Employers use this number for payroll purposes, tax deductions, and to ensure compliance with labor and tax regulations. With a NIF number, individuals can legally work and receive salaries, which allows them to contribute to the social security system.

Banking and Financial Transactions:

If you want to open a bank account, a NIF number is essential. This is also true if you want to obtain credit or debit cards, as well as other financial transactions within the country. For those applying for a visa such as the D7 visa or digital nomad visa, that require you to have a bank account in Portugal prior to moving here, it is crucial to acquire a NIF as soon as possible. Banks and financial institutions require the NIF number to comply with anti-money laundering regulations, identify customers, and facilitate financial operations securely.

Real Estate Transactions:

This is the part we deal with the most. If you plan on buying or selling property in Portugal regardless of whether or not you plan to live in the country, having a NIF number is a legal requirement for property transactions, ensuring proper identification of the buyer or seller and enabling the payment of associated taxes. Without a NIF number, it would be nearly impossible to complete real estate transactions and fulfill the necessary tax obligations.

Business Activities:

Entrepreneurs and freelancers, or self-employed people, in Portugal need a NIF number to establish and operate their businesses legally. It is a necessary requirement for registering a company, obtaining business licenses, and, again, complying with tax regulations. The NIF number links the individual's personal tax obligations with their business activities, ensuring proper reporting and tax compliance. If you’re self-employed and need to invoice or provide receipts for your services or selling of products, you’d be required to get “recibos verdes”, or green receipts, which you can also only get if you have a NIF number.

Health Services:

Accessing public healthcare services in Portugal often requires a NIF number. It enables the healthcare system to accurately track patient information, facilitate billing procedures, and ensure the provision of healthcare benefits. Having a NIF number simplifies the process of receiving medical care and benefits from the Portuguese healthcare system.

We will be sharing more about the NIF in our coming posts as this really is one of the first essential steps to getting set up in Portugal.

Até já,

Mia and Rafael