You might think finding an apartment or making travel arrangements are the first tasks you need to do when moving to Portugal. But, you’d be wrong. The very first thing you’ll need to move is a Número de Identificação Fiscal, commonly referred to as a NIF.
This is kind of like a social security number in that it stays with you throughout the course of your life. Unlike a social security number, though, giving your NIF during practically every financial transaction will definitely not result in you being defrauded. A NIF is mandatory to open a bank account, so be prepared to obtain yours as soon as the migration process begins.
Fiscal Representative
To apply for a NIF as a foreign citizen, you must have someone vouch for you as a fiscal representative. In our case, the folks who provided ongoing guidance to help with our move, EI Migrante, were our fiscal reps.
The Portuguese government explains that you your fiscal representative (whether an individual or agency) must have Portuguese residency. Additionally you must supply your passport that serves as an identification document. Some agencies charge for this service and may charge a fee for every year that they remain your fiscal representative.
However, assuming you are on-track for a standard migration schedule, you will arrive in Portugal before the first year of fiscal representation ends. In this case, you’ll be able to remove that agency from your NIF.
Change NIF Fiscal Representation
When you arrive in Portugal, one of the first things you’ll want to do to avoid ongoing fees is to remove your fiscal representative. To do this, you’ll need access to your online account with Finanças. Your fiscal representative received the password access details for your account when they applied. You can change them once you login the first time. Pro tip, since you’ll probably still becoming familiar with the Portuguese language, use a Chrome browser. There is a button in the address bar that allows you easily switch between Portuguese and English.
To do so, you will need to login, go to the e-balcão area of the site and submit a request. You will need to provide a copy of your lease agreement or other proof of your Portugal address.
The Finanças team is very responsive and should reply within a few days. They’ll send an updated NIF document showing your new address and confirming the fiscal representative was removed. Your former fiscal representative may ask to see this updated NIF document.
NIFs are Everywhere
It will surprise you when you experience just how many places and people ask for your NIF or contribuinte once you’re in Portugal. It’s everywhere.
Service providers need it to issue you invoices and receipts for service. Stores commonly ask for it for large and small purchases – even groceries. The vendors report the sale to Finanças attributed to your NIF and pay their own taxes on the purchases. If you pay taxes in Portugal, you might receive a tax deduction based on certain categories of expenses. It also makes it easy for you to track your purchases online in your Finanças account – perfect for budgeting.