If I get a NIF, will I have tax obligations in Portugal (e.g. filing a tax return)?

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Published: November 2022 & Last Updated: November 2022

Moving to Portugal typically involves becoming tax resident there, but what happens if you obtain a NIF as a non-resident? An ever-increasing number of people are being asked to obtain a Portuguese NIF as part of their residency visa application – for the D7 visa, for example – and many people ask whether having a Portuguese tax number will mean having Portuguese tax obligations as well. Understandably, most people don’t want the challenges and costs of having to file a tax return in Portugal.

The good news is that simply having a NIF number doesn’t automatically mean that you have tax obligations in Portugal. According to Kathleen Lo from Bordr.io, “If you obtain a Portuguese NIF you won’t automatically have tax obligations in Portugal or be required to file a Portuguese tax return.”

That’s definitely good news for those that obtain a NIF number but don’t use it for anything. However, it should be noted that there are some instances in which you may have tax obligations in Portugal as Lo continues.

“However, even if you haven’t made Portugal your country of residence, you may have tax obligations in Portugal if you have purchased a property or car in Portugal, for example.”

Another bit of good news is that the law changed in 2022 regarding fiscal representation. Prior to this, non residents from outside of the EU/EEA with a Portuguese NIF number needed to have a fiscal representative. Most people ended up using a company and had to pay an annual fee for ongoing fiscal representation. Thankfully, that has now changed.

“If you are non-resident in Portugal, as of 2022 you no longer need an ongoing fiscal representative if you have a NIF but have no tax obligations in Portugal (e.g. owning a property here). You can simply activate “Electronic Notifications” in Portal das Finanças.”

Have other questions? Be sure to read our big guide to the Portuguese NIF number.

Professionally answered by Kathleen Lo from Bordr.io. Bordr connects individuals with financial and legal professionals, enabling them to obtain essential services like a NIF or Portuguese bank account.

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