Once you earn an income, acquire real estate or purchase vehicles in Portugal, you will be bound by several tax obligations. To comply with them you must request, first of all, at a Tax Office or at a Loja do Cidadão (“Citizen’s Bureau”) your Número de Identificação Fiscal (NIF) (Tax ID Number), which will identify you before the Tax and Customs Administration.
For the time you have been considered as tax resident in Portugal, you must declare the income obtained in Portugal and abroad.
Until the first day of permanence (in the year of arrival in Portugal) or from the last day of permanence (in the year when the tax residence ends)you must only declare the income that, for IRS purposes, is considered as obtained in domestic territory and for which the presentation of the declaration is mandatory while non-resident.
In what concerns the formalities to be fulfilled, regarding the tax residence at the home country, it must be taken into account the legislation of that country. So, you must get in touch with the Tax Administration of that country, in terms let be clarified in relation to the proceedings to be adopted.
In the year of leaving Portugal you must present two income declarations, without prejudice to the possibility of exemption under general terms. A declaration concerning the period when you have been considered as resident, stating every income obtained during that period in Portugal and abroad, and another declaration concerning the period when you have been considered as non-resident, in which you must only declare the income obtained in Portugal.
You must appoint a tax representative whenever you intend to settle in a foreign country outside the European Union or the European Economic Area, and in the latter case, since that State is bound to administrative cooperation in the area of taxation equal to that established in the European Union.
The temporary residence allows the taxpayer to be considered resident at domestic territory only during part of the year, since he stays for more than 183 days, continuously or with interruptions, in any 12 month period. He will also be considered resident, when, staying for less time, he has accommodations that make believe his real intention to keep it and occupy it as usual residence.
Under these conditions, he will be considered resident in Portugal, from the 1st day of staying, being understood as day of presence any complete or partial day, that includes overnight stay, expiring the residence on the last day of staying in domestic territory.
If the taxpayer is able, at any moment of the year, to be resident and during the last year was also considered resident in domestic territory, the tax residence is considered as obtained since the first day of the year of return.
Additionally, although the decree-law stipulates that the last day of staying in domestic territory determines the cessation of residence, the taxpayer will always be considered resident in Portugal all year round, if he remains in Portugal more than 183 days, continuously or with interruptions, and has obtained during that year and after the last day o staying, income liable to IRS and not exempt, if he was considered as resident, except if he proves that such income are taxed by a similar tax:
- In another Member State of the European Union or in the European Economic Area (in the latter, since there is an exchange of information in fiscal matter and the administrative cooperation in fiscal matter can be foreseen;
- In another State, where the tax rate is not less than 60% of the one that would be imposed, if he was considered as resident in Portugal;
- On the year following that in which he lost that quality, he acquires the resident status again.
To communicate with the tax and customs authority, through the Tax Office Portal, you can request the corresponding password at www.portaldasfinancas.gov.pt through the option New User, on the right side of the computer screen and fill the application form with your personal data, on such terms you are requested for.
You can also allow the tax and customs authority to send you optional messages and messages of support to the voluntary compliance, through text-messages and email. This service is free, of personal and confidential nature. However, to allow us to provide it in a safe way, we need you to ensure your email and your mobile phone number.
As soon as the password request takes place, two codes will be automatically made available:
- To ensure your mobile phone, by text message:
- To ensure your email, through electronic mail
- Theses codes can only be confirmed at the Tax Office Portal at Cidadãos>Outros Serviços>Confirmação de Contactos (Citizens>Other Services>Confirmation of Contacts) after receiving the password to the Tax Office Portal, that is sent by mail, in a message-envelope, to your tax address.
Go to the Tax Office Portal at http://www.portaldasfinancas.gov.pt/at/html/index.html
Source: Ministry of Finance
