We offer two options when it comes to getting your NIF:
NIF with 1 year of tax representation – A one-time payment option.
NIF with 1 year of tax representation and automatic renewal – This ensures continued tax representation beyond the initial year.
Here’s a detailed explanation of which option works best for you.
Obtaining a Portuguese NIF (Número de Identificação Fiscal) is a crucial step for expats and foreign investors looking to establish a presence in Portugal.
However, choosing the right tax representation option can impact how you receive important notices from Finanças (the Portuguese tax authority).
Legally, once you activate electronic notification channels (notificações eletrónicas) through the Finanças portal, a tax representative is no longer required.
However, some critical tax notices are still only sent via regular mail, which could create complications if you do not have a reliable address in Portugal.
When Should You Opt for a 1-Year Tax Representation?
If you plan to relocate to Portugal within one year of obtaining your NIF and will update your tax address to a Portuguese address shortly after, a standard 1-year tax representation may be sufficient. During this time, your tax representative can receive official tax communications on your behalf.
When Should You Choose a NIF with Tax Representation Renewal?
If you do not plan to move to Portugal within one year or if you are unsure about updating your tax address to a Portuguese address in the near future, we highly recommend opting for a NIF with automatic tax representation renewal. This ensures that you continue to have a representative to receive critical tax-related communications beyond the initial one-year period.
Why Keeping a Tax Representative is Important
Even if you have activated electronic notifications, certain tax-related notices are still exclusively sent via regular mail, which means you could miss important deadlines or legal obligations.
Below are examples of such notices:
Examples of Notices Sent Exclusively by Mail
Audits & Tax Inspections Notices
If Finanças selects you for an audit or a tax inspection, they may send an official letter by mail requesting documentation or clarification about your tax situation.
Fines & Late Payment Warnings (Penalizações Fiscais)
Some tax penalties and warnings for overdue payments may only be issued by mail, requiring an official response.
Requests for Additional Documentation
If the tax office needs more documents for tax compliance or verification purposes, they may send a letter with a deadline for submission.
Taxpayer Summons for Hearings (Notificação para Audiência de Interessados)
If you are required to appear before Finanças for a hearing or legal procedure, the summons might only be issued via regular mail.
Final Tax Settlement Notifications
In certain cases, final tax settlements or formal decisions regarding disputes are communicated via physical mail.
Notifications of Property Tax (IMI) Issues
If there’s an issue with your property tax (IMI), such as a reassessment or correction, it might be sent via letter rather than appearing in the online system.
Legal Proceedings & Debt Collection Notices
If the tax office initiates legal proceedings for outstanding debts, some of these notices may only be sent via certified mail.
Fraud Investigations & Administrative Reviews
If your tax status is under review for suspected inconsistencies or fraud, certain notifications might be legally required to be sent by mail.
Final Recommendation
To avoid missing critical communications from Finanças, we recommend choosing the NIF with tax representation renewal if you are not planning to relocate to Portugal within a year or if you want to ensure uninterrupted tax representation for important notices.
Having a reliable tax representative ensures that you stay compliant and receive all necessary updates regarding your tax obligations in Portugal, preventing potential legal or financial complications.