Last updated: October 27, 2025
If you've received your NIF through Novomove and now want to open a self-employment activity in Portugal, you might be wondering if your tax representative can help with this. Here's what you need to know.
š Quick Answer
No, the tax representation included with your Novomove NIF service cannot open activities or register CIRS codes on the Portuguese tax portal.
This is a separate service that requires a different type of tax representativeāspecifically, a VAT tax representativeāwho takes on additional legal and financial responsibilities.
š What Does Novomove's Tax Representation Cover?
The tax representation included with your NIF service has a specific, limited scope.
Here's exactly what it covers:
ā Included in your NIF service:
Obtaining your NIF (Tax Identification Number)
Handling communications from the Portuguese Tax Authorities
ā NOT included:
Opening activities on the tax portal
Registering CIRS or CAE codes
Submitting tax returns (IRS or VAT declarations)
Making tax payments
Handling VAT obligations
š What's the Difference: Regular Tax Rep vs. VAT Tax Rep?
There are two distinct types of tax representation in Portugal for non-residents:
1. Regular Tax Representative (What you have with your NIF)
Purpose: Receive mail and communications from FinanƧas
Liability: Limitedāno financial responsibility for your taxes
Best for: Non-residents who own property, have a bank account, or need a NIF for passive purposes
2. VAT Tax Representative (What you need to open an activity)
Purpose: Register business activities, handle VAT obligations, file tax returns
Liability: Joint responsibility with you for VAT payments and compliance
Required for: Non-EU residents opening any self-employment activity in Portugal
Must be: A VAT-registered taxable person in Portugal
š¤ Do I Need a VAT Tax Representative?
You must appoint a VAT tax representative if:
ā
You are a non-EU resident (tax resident outside the EU/EEA)
ā
You want to open a self-employment activity in Portugal
ā
You want to register activity codes (CIRS or CAE) on the tax portal
ā
You plan to invoice clients for services or products
Important: This requirement applies regardless of your expected revenue or turnover. The VAT representative must be appointed before you start your activity.
š¢ Official Guidance from Portuguese Tax Authority
According to the Portuguese Tax Authority, the requirements differ based on your country of residence:
For EU/EEA Residents (Including Norway, Iceland, Liechtenstein, and Andorra):
The appointment of a tax representative is optional. You can instead subscribe to electronic notification channels to receive communications from FinanƧas.
For Non-EU/EEA Residents (Third Countries):
If you want to open a self-employment activity in Portuguese territory, it is mandatory to appoint a VAT tax representativeāeven if you subscribe to electronic notifications. The representative must be a VAT-registered taxable person with tax domicile in Portugal.
Source: Portuguese Tax Authority - Tax Identification Number to Foreign Citizens-Non-Residents, Page 5, Section 3.1
š” What About VAT Exemption?
You might have heard that Portugal has a VAT exemption for businesses earning under ā¬15,000 per year.
However, this exemption may not apply to non-residents.
Recent changes to Portuguese VAT rules indicate that self-employed individuals who are not tax residents in Portugal may no longer be eligible for VAT exemption, meaning they must follow the standard VAT regime from day oneāregardless of turnover.
Source: All Finance Matters - VAT exemption (article 53): what you need to know about the new rules
š What Should I Do Instead?
If you need to open a self-employment activity in Portugal, here are your options:
Option 1: Hire an Accountant with VAT Representation Services
Most Portuguese accountants offer VAT tax representation as part of their services. Typical costs:
ā¬50-ā¬100/month for VAT tax representation
ā¬100-ā¬250/month for full accounting services (depending on business complexity)
Option 2: Consult with a Tax Professional First
Before opening your activity, we recommend booking a consultation to understand:
Which CIRS or CAE codes apply to your business
Whether you need to charge VAT
What your ongoing tax obligations will be
How to properly register your activity
Option 3: Work with a Fiscal Representative Service
Some companies specialize in providing VAT tax representation for non-residents. They can:
Register your activity on the tax portal
Handle quarterly or monthly VAT declarations
Provide ongoing compliance support
ā ļø Important Notes
Timing matters: The VAT representative must be appointed before you start invoicing or conducting business.
Penalties for non-compliance: Opening an activity without the required VAT representative can result in fines ranging from ā¬75 to ā¬7,500.
Representative's liability: Unlike regular tax representatives, VAT representatives have joint liability for your VAT payments. This is why they charge higher fees and require more due diligence.
This doesn't replace your existing fiscal representative: If you had a fiscal representative appointed when you obtained your NIF through Novomove, that representative will continue to receive general correspondence from FinanƧas (as long as they remain registered on your NIF). The VAT tax representative is an additional appointment specifically for handling your business activity and VAT obligations.
š Additional Resources
Portuguese Tax Authority: Tax Identification Number to Foreign Citizens - Non-Residents (Official Guide)
Portal das FinanƧas: Portuguese Tax System Overview
š¬ Still Have Questions?
If you're unsure whether you need VAT tax representation or want to discuss your specific situation, our team is here to help:
Quick questions about NIF services: Contact us via your Novomove account
Tax planning and compliance questions: Book a tax consultation
General immigration questions: Book a free 15-minute call
This article is for informational purposes only and does not constitute legal or tax advice. Portuguese tax regulations are subject to change. Always consult with a qualified tax professional for advice specific to your situation.