First, if your goal is simply to obtain a Portuguese Tax Identification Number (NIF), we recommend exploring online resources to handle the process independently. Alternatively, if you wish to acquire a NIF alongside representation by a local accountant who can also issue a certificate of no outstanding debts with the tax authorities, social security, and act on your behalf with the Portuguese tax authorities, then keep reading—this service is designed for those who are interested in or considering starting any type of financial activity in Portugal.
In order to carry out any economic activity in Portugal, whether it’s a real estate investment, starting a business, or investing in any other sector, you must register with the tax authorities and obtain a Portuguese tax number.
For comparison, we will relate this to the situation in Israel – the tax system in Israel is linked to the citizen’s ID number (or the resident’s number for those who do not have an ID number), and citizens are the ones who report to the tax authorities and pay taxes in a simple and transparent manner.
Similarly, when foreign investors wish to invest in Israel, they must approach the Israeli tax authorities and obtain a tax number to begin any financial and economic activity in the country. It is not possible to operate legally in Israel without completing this process.
A similar system exists in many countries around the world, particularly in Portugal. If you are not a citizen or resident of Portugal but wish to conduct any economic activity there, you must register with the tax authorities to obtain a local tax number, thus making your economic activity legal.
With the tax number, you can also open a local bank account, deposit and withdraw funds, use a credit card, and of course, receive financing for your investments from the bank.
How to Obtain It? For those who do not speak Portuguese or are unfamiliar with the legal authorities in Portugal, obtaining a tax number may be a complex process.
The process involves a lot of bureaucracy, paperwork, and dealing with officials in the authorities, who usually speak only Portuguese. Despite their willingness to assist, communication can be challenging.
The service we offer to our clients (and also use ourselves for our investments) is to hire the services of a local tax consultant or lawyer – who is familiar with the law, the common procedures in the country, and of course speaks the language, enabling them to streamline and expedite the process significantly.
While there is a certain cost for hiring the services of a local professional, there is no doubt that this service can save investors valuable time and spare them from dealing with cumbersome bureaucracy in a foreign language.
