The NIF in Portugal:
a complete guide for non-residents.

All insights

If you are thinking of buying a home in Madeira, investing, working or simply opening a bank account in Portugal, there is a first step you cannot skip: obtaining the NIF, the Tax Identification Number (Número de Identificação Fiscal).

It is the most basic document in the Portuguese tax system and, at the same time, the one that causes the most confusion among foreigners. In this guide we explain what it is, who needs one, how to get it and, while we are at it, a point many people are unaware of regarding the obligation to have a tax representative.

What is the NIF?

The NIF, also known as the taxpayer number (número de contribuinte), is a unique nine-digit number issued by the Tax and Customs Authority. It identifies you before the tax office, the banks and all other public and private entities in Portugal.

Both Portuguese citizens and foreigners can hold a NIF, whether resident or non-resident. And in many cases it is not just a possibility, it is a necessity.

What is the NIF used for?

The truth is that almost nothing happens in Portugal, financially or legally, without a NIF. You need it to open a bank account at any Portuguese bank, to buy, sell or rent a property, and to sign virtually any contract, whether a tenancy, an employment contract or services such as water, electricity and telecommunications.

It is also indispensable for setting up a company or registering a self-employed activity, for meeting your tax obligations such as IRS, VAT or IMT, and even for accessing public services such as Social Security, the National Health Service or enrolling children in school. Anyone going through an immigration process knows this well: visa applications and residence permits require it right from the start.

In other words, if you plan to have any connection to Portugal, the NIF is the starting point.

Who needs a NIF?

The rule is simple. Anyone who is resident in Portugal, whether Portuguese or foreign, is required to have a NIF. And anyone who is not resident but has any tax-related activity in the country, such as buying a property, investing or opening an account, also needs to obtain one.

In practice, even those merely considering moving or investing usually sort out the NIF right at the start, simply because without it they cannot get almost anything done.

The point most people get wrong: do I need a tax representative?

This is, by far, the biggest source of confusion. And much of the information circulating online is out of date, so it is worth clarifying carefully.

Until 2022, any non-resident needed to appoint a tax representative in order to obtain a NIF. From that year onwards, the rule changed. Appointing a tax representative became mandatory only when the non-resident has a tax-legal relationship in Portugal, such as owning a property or a vehicle.

What this means, in practice, is that simply to obtain a NIF you no longer need a tax representative. But if you buy a property in Portugal, you become obliged to appoint one, and you have fifteen days after the deed to do so. Alternatively, you can opt for the Tax Authority's electronic notifications, which serve as that official contact channel.

So what, exactly, is a tax representative?

The tax representative is the person or entity, with a NIF and residence in Portugal, who acts as the point of contact between the non-resident and the tax office. They are the one who receives notifications from the Tax Authority, makes sure nothing is lost along the way and that deadlines are met.

As this is an ongoing responsibility, many foreigners prefer their accountant to take on this role, rather than asking a favour of a friend or acquaintance who may not give a letter from the tax office the attention it deserves.

How to get the NIF, step by step

There are two possible routes to obtaining the NIF.

• In person, in Portugal, by prior appointment, at any tax office (Serviço de Finanças) or Citizen's Shop (Loja de Cidadão). It can be done by the person themselves or by an attorney holding a power of attorney.
• Online, via the Portal das Finanças (e-balcão), without having to travel to Portugal. In this case, the request is submitted by a legal representative, an attorney such as your accountant, under a power of attorney granted for that purpose.

Note a distinction that confuses many people: this legal representative, who handles the NIF application, is not the same as the tax representative. Applying for a NIF does not, in itself, require you to appoint a tax representative.

As for documents, a non-resident usually needs an identification document, such as a passport, a proof of address in their country of origin, which can be a utility bill, a bank statement or a contract, and, where the request is made by a third party, the power of attorney and identification of the representative.

How much does it cost?

Applying for the NIF at the tax office is free. Any costs that may arise relate only to representation services or to having the process handled by a third party, never to the issuance of the number itself.

The tax address is not the same as the NIF

There is a detail here that often causes doubts. The NIF identifies you; the tax address tells the tax office where you live.

When you become resident in Portugal, you must report your Portuguese tax address to the Tax Authority. And something important happens at that moment: from the instant your tax address becomes Portuguese, you no longer need a tax representative, because you already have a tax domicile in the country. Whenever you move home, you have sixty days to report the change.

Buying a home in Madeira? The NIF is only the beginning

For those moving to or investing in Madeira, the NIF is only the first of several steps. Next usually come the possible appointment of a tax representative, if you buy a property, the treatment of IMT and Stamp Duty on the purchase, an eligibility analysis for the IFICI regime, which allows taxation at 20% for those who become resident and carry out a qualified activity, and IRS planning in your new condition as a resident.

Dealing with these steps in a joined-up way, rather than tackling them one by one as problems arise, saves time, money and more than one headache.

How Arco Fiscal can help

At Arco Fiscal, we handle the entire process for non-residents connecting to Madeira: the NIF application, the appointment of a tax representative when required, reporting the tax address and all the support that comes afterwards, from buying a home to IRS, including the analysis of regimes such as the IFICI.

We speak Portuguese and English, and we know well the specifics of those arriving from abroad. If you are planning to move to or invest in Madeira, talk to us. We start with the NIF and take care of the rest.