What if you wanted to know how to get a Portuguese bank account and tax number? This of course is super important if you want to relocate to Portugal or have plans of carrying out financial operations there.
The NIF is very similar to a social security number. It is essential for tax-related issues, and other daily activities such as purchasing goods and services, opening a bank account or entering into contracts, and so many others.
However, applying to get the tax number and open a Portuguese bank account is notoriously slow. And you’ll need documents like a valid passport, proof of address, and so on. In this article, we’ll share everything you must know about how to get a Portuguese tax number and bank account. Read on.
How to get a Portuguese bank account and tax number
You’ll need to get the NIF number first before you can go for the Portuguese bank account. So, let’s talk about what it takes.
How do I get a Portuguese tax ID number?
The NIF or “Numero de Identificacao Fiscal” is a Portuguese tax number and the first thing you need to get for immigration. This is different from many other countries, where tax numbers are issued to foreigners who have stayed in the country for over 183 days in a year.
As said, the NIF in Portugal works just like a security number. You’ll need it for purchasing goods, opening a bank account, buying property, investing in Portugal for the Golden Visa program, carrying out financial transactions, and entering contracts in Portugal. That is, a tax number (NIF) is issued to residents, non-residents owning property (real estate), or individuals receiving income from Portugal. Before you go on: read the tax benefits of moving to Portugal here.
Nevertheless, your application process also differs by your status as well. Below are the various classes of people eligible for the Portuguese tax ID number and their mode of application.
Residents and Citizens of Portugal
As a citizen or resident of Portugal, you will have to apply at the NIF tax office (Portuguese tax office) for your tax number. You have to include your Portugal-registered address in the application.
EU citizens and residents
If you are a European Union (EU) citizen or you reside in the EU, you will have to include your EU-registered address while applying for NIF in Portugal. That said, applying for the NIF requires applying in person and this process is mostly free for EU/EEA citizens. However, you can take the online service route. But this might mean paying some extra fee. That said, note that if you use your EU-registered address that isn’t in Portugal, it won’t make you a tax resident in Portugal.
Non-EU citizens and residents
As a non-EU citizen or resident, you won’t be able to apply directly at the NIF office. Rather you will have to go through your tax representative, which could be a lawyer or law firm. Your representative will include his/her Portuguese registered address in your NIF application form.
Besides, it is the responsibility of your representative to ensure you pay your taxes before their dates and keep you updated. It is important to note that you will need to pay an average of 1000 euros per annum to hire a tax representative in Portugal.
However, if you relocate to Portugal and wish to handle your NIF by yourself, then you will need to contact the NIF office and give them your Portuguese registered address.
How to Apply for the NIF
As we already established, there are two ways of applying for the NIF number. You can apply using an in-person appointment or online via a tax representative. Remember your status (Resident, non-resident, or EU citizen) determines which options are open to you. Let’s talk about the processes that both of them require.
Applying for your NIF in person
If you always walk in for your NIF at the Financas. But it’s much better to get an appointment first. To find the branch, go to the Portuguese government website and check out their opening hours.
Most bureaucrats may frown on appearing without making an appointment, especially when you are using Financas locations in cities like Porto or Lisbon. For your appointment, you can call tel:+351217206707. The online scheduling is only available for those with NIF and logging in for Portal das FInancas.
And even when you get the appointments done, people often suggest being there at least 45 minutes before opening hours to avoid spending your day there. That said, Financas offices in smaller towns often have shorter lines. But you may not find employees that speak English.
Documents you’ll need for your NIF
First, you’ll need address proof from your home country. For most people, this is their bank statement that is less than three months old and from their home country. Of course, if you are registering as a Portuguese resident, you need proof of your Portuguese address.
An EU citizen living outside the EU/EEA, you’ll need address proof somewhere in the EU. For this purpose, you can change your address on your current bank and print your next statement.
Some European citizens prefer to register for the many European online banks/fintech. This allows them to have a bank account that they can now use to get their European address. However, note that this method only works for EU/EEA citizens.
You can’t use it if you are an EU resident. When you are an EU resident, you’ll need your government-issued proof of address.
Other documents you’ll need include:
- You will have to attach a valid passport while applying for your NIF. If you are an EU citizen your national ID card listing your current address is accepted.
- Proof of address in Portugal (utility bill, or rental agreement).
How to get NIF online – Need a tax representative or not?
Before July 2022, as a non-EU/EEA resident, you would have also needed a tax representative. This would have attached his/her proof of address in Portugal or the EU as the case may be. You may no longer need a tax representative (However, The Portal of Citizen Services NIF still says you need it). So if you are a non-EU/EEA resident, always get one.
And they can make the process efficient especially as that’s the advantage of getting your NIF online via an NIF service provider or your lawyer.
In truth, a tax representative is someone with the Portuguese tax authority who can communicate on your behalf. Often it’s a lawyer, who is also a permanent resident willing to take on responsibility. Generally, lawyers cost about 300 – 700 Euros per year. Online NIF service providers are cheaper, but you should carefully review and ensure they have the jurisdiction to offer that service.
Also, this option works for both EU and non-EU residents. They will submit your documents on your behalf and help shorten the process.
How long does it take to get the NIF in Portugal?
It will take you about 30 minutes to apply for NIF at the tax office. And you are supposed to receive your tax number instantly after application. If you use an online service provider or lawyer the process might take a few days. The advantage of using online service providers or a lawyer isn’t about the cost or processing time.
It’s that they save you the issues surrounding scheduling, actually getting to the NIF office, and being attended to. Getting a NIF is notoriously challenging. If you’re doing it on your own. It might take a few days to get an appointment and even more to get into the NIF office. Of course, it’s free to do it in person. But through an online service representative, it will cost anywhere from 100 Euros to 300 Euros. Lawyers cost a bit more.
Popular online NIF service providers include
- Anchorless – costs from 79.20 Euros
- e-residence.com – costs from 89 Euros
- NIF online – costs from 67 Euros
Does NIF expire?
No, the NIF (Numero de Identificacao Fiscal) does not expire. It’s for life and valid indefinitely as your permanent tax identification number. You also do not need to renew. However, if you lose your NIF, you will have to start the process all over again. Still, the Portuguese tax office now accepts digital PDFs of your NIF document. So, you should save your NIF as a PDF on a cloud drive once you get it.
How to get a Portuguese bank account from a country like the UK?
After you’ve gotten your NIF, you can now proceed to get your Portuguese bank account. This often includes the following steps.
Step 1: Choosing a Bank
Before choosing a bank, first, ensure you have done proper research to find out if the bank you wish to choose can fulfill your banking needs. In Portugal, there are local banks, international banks, and virtual banks. So, when choosing a bank, consider factors such as monthly fees, online banking options, and the branch network. Consider the fees, and charges for account maintenance, ATM withdrawals, customer support, and bank reputation.
And if you’re not residing in Portugal, then you have to find banks that can suit your needs.
Step 2 – Gather your documents
- Before you make the move to opening a Portuguese bank account, one thing you must get is your tax number (NIF). As a non-resident, your lawyer or tax representative can help you get your nine-digit number (NIF).
- You will need proof of identification, which your valid passport can serve perfectly.
- Proof of address is also vital for opening a Portuguese bank account. A recent utility bill or lease agreement can serve as proof.
- You will need to attach your registered Portuguese address. But, as a non-resident, you will have to give proof of your physical address abroad. (Which is also important for tax affairs).
- Proof of income/employment is also essential, though the requirements depend on the bank. A current payslip or employment letter can serve as proof of income. If you are unemployed, you have to show proof of registration with the Portuguese employment center.
- Some banks may require your Portuguese mobile number, especially for SMS activation.
- Some banks may also require you to have a minimum deposit, which usually ranges from 200-300 euros.
Step 3: Pick your Account Type
Portuguese banks are very flexible and offer various account types that can satisfy your needs. Below are the 3 main account types available in the Portuguese banking system:
- Current account (Conta corrente): You can use it to carry out your daily cashless transactions and receipts of wages. With your current account, you will have access to debit cards, ATM withdrawals, and student or non-resident account services.
- Instant-access savings account (Conta poupanca): If you are the type that prefers your savings to be flexible, easy to convert, and moved, then an instant-access savings account is perfect for you. Because it gives you unrestricted access to your savings while simultaneously offering you a low interest rate.
- Time-deposit accounts (Conta de deposito a prazo): This is a unique type of savings account, which allows funds to be deposited into your account. The advantage of this account is its high interest rate. However, there are stringent restrictions for the length of time funds must stay in your account. That’s why you can’t just be moving cash out of your account very often or indiscriminately.
Can I open a Portuguese bank account online?
You can always open a Portuguese bank account online. Doing this will help facilitate the process. That said, you should always confirm before opening any bank accounts online.
Additional Considerations
- Residency requirements: Residency requirements may be demanded by some Portuguese banks. Though, it depends on your situation. If you are a Portuguese non-resident, you might qualify for a unique non-resident account. However, the options and requirements may vary.
- Tax Implications: Having a Portuguese bank account may attract tax implications. Therefore, you must consult a tax advisor if possible, especially if you are not residing in Portugal. The tax advisor will help you understand the effects of the tax implications on you. Besides, the tax advisor can also help you handle potential tax implications.
Concluding Thoughts
So, now you know how to get a Portuguese bank account and tax number. While you can always pick convenience by doing both online, ensure you carefully review the service providers you pick and understand all laws that apply to you.
Frequently Asked Questions (FAQs)
Can a UK citizen open an EU bank account?
A UK citizen can open an EU bank account. However, residence matters. EU regulations entitle legal residents to basic bank accounts. However, some banks may restrict accounts to residents only for other account types. And if the bank offers a non-resident account, there will be some limitations and of course higher fees.
Can you use Wise in Portugal?
Absolutely! Wise is a money transfer service that allows you to hold and manage multiple currencies, including Euros. You can use a Wise debit card to spend Euros in Portugal and avoid high foreign transaction fees.
What is the best bank for foreigners in Portugal?
There’s no single best bank. You can pick from banks like CGD, Millennium BCP, and Banco Santander Totta which are the biggest. Also, consider online banks and payment options for making transactions outside Portugal.
How hard is it to open a bank account in Portugal
Opening a bank account in Portugal is generally considered easier compared to some other European countries. The only aspect that might take some time is getting your NIF because you need it to open the bank account.
How much tax do you pay in Portugal?
The amount of tax you pay in Portugal depends on your income and residency status. That said, Income Tax (IRS) ranges from 14.5% to 48%. Social security rates however also vary. And you’ll pay Value Added Tax on most goods and services, with a standard rate of 23%. It’s best to consult a tax professional.
How do I get a tax residency certificate in Portugal?
A tax residency certificate proves you’re a tax resident in Portugal. It is also different from the NIF number. To get it, you’ll have to submit a request online or in person. For it, you need proof of residency, tax return filing proof, etc. (Specific requirements may vary)
How much does a fiscal representative cost in Portugal?
The cost of a fiscal representative in Portugal varies and will cost higher if you require established firms. Ideally, it can cost anywhere from 50 Euros to 1,000 Euros annually.
How to make an appointment in finance in Portugal?
If you already have your NIF and wish to still visit the tax office. You can go to the official Portuguese website via:https://info.portaldasfinancas.gov.pt/pt/docs/Conteudos_1pagina/Pages/portuguese-tax-system.aspx and schedule an appointment.
What banks have no fees in Portugal?
No banks in Portugal offer free accounts. However, charges will vary from banks charging monthly fees for just having accounts to banks that charge fees for transactions. Always research and compare different banks in Portugal before making your choice.
How to get a Portuguese NIF number?
You can get your Portuguese NIF number at the local Finanças office (tax office). You’ll need to bring your passport, and proof of address, and fill out an application form. Alternatively, you can use an NIF service provider or lawyer.
Do you need a Portuguese bank account to buy property in Portugal?
You don’t need a Portuguese bank account to buy property in Portugal. But it can simplify the process by making transactions easier, making certain to provide the appropriate proof of funds, and you’ll need a local account for paying property taxes and other fees in Portugal.
