Do I need to submit a Portuguese tax return after I receive the NIF number?

9 March 2021

Rui Pedro Fonseca

Obtaining a portuguese tax id or "número de identificação fiscal" ("NIF") does not necessarily mean you must prepare and submit a Portuguese tax return every year from that day on. In principle, you would be acquiring the non-residency tax status in Portugal, if you declare a non-PT address before the Tax Authority. On the contrary, when you declare a PT address, you would be turning your tax residency to Portugal automatically.

Any questions regarding the correct registration of the tax status should be addressed by a Tax specialist, notably when international tax matters arise.

A PT tax return must be submitted in Portugal in the following cases:

As a non-resident for tax purposes, you only have to file a tax return in respect of portuguese-sourced income, when it is not subject to a final autonomous withholding tax in Portugal, for instance the case of Rental Income or Capital Gains. Collecting the relevant documentation and duly verifying all invoices that may be deducted as expenses is crucial for the process.

Portuguese tax residents, irrespective of having the non-habitual resident status, are obliged to declare in Portugal their worldwide income from the date on which they become residents and up to the date on which they cease to be residents. So, reporting their worldwide income for portuguese tax residents, even if non-habitual residents, is mandatory by law.

Please note the Portuguese tax year is the same as the calendar year and the period to prepare and submit your tax return is between 1st of April and 30th of June.

The annual tax return should be properly prepared and submitted, mostly when the NHR tax exemptions or reliefs are expected, in order to guarantee the beneficiary takes full advantage of the regime.

Our tax team is available for any further clarifications and assistance on this process.