Some Key Info about Paying Taxes in Portugal (Linked to Expats)
If you want to get to Portugal, it is important to know what to expect when speaking of the tax system. The matter is that everyone who has a job in Portugal is obliged to pay taxes. This article will reveal the basics of the taxes to pay. Apart from this, you will learn how to get NIF.
Paying Taxes: Some Rules for Foreigners
First of all, you are thought to be a tax resident of Portugal if you stay in the country for 183 or more days. If the number of days spent in Portugal is fewer than this, you will pay taxes just on what you earn.
But anyway, those who receive NIF Portugal online (this is what may be done when you would like to achieve a certain goal) are associated with paying taxes. There is a very attractive NHR regime that non-residents apply for by the way. it is all about tax exemptions for the first ten years of residence, and reduced tax rates too. And, it is not that hard to apply. This is especially true in case you stick to the assistance of trustworthy intermediaries.
According to the NHR regime, expats can expect to pay a 20% personal income tax. And, they do not pay taxes on:
- Capital gains;
- Royalties, etc.
All of these benefits are going to work just within a period of ten years. After this time, it is vital to think about long-term residency in case you are interested in this.
Are There Any Other Payments to Be Aware of?
Well, you need to know that there are social security payments too. but these ones are associated with the future help that can be received from the government. For example, it is your pension once you retire. Apart from this, there is parental leave within the social security system in Portugal. You will need to receive a NISS number in order to pretend to receive these kinds of payments later.
What is more, there are property taxes in Portugal. It is a Property Purchase Tax (IMT), and Municipal Property Tax (IMI).
As for the tax associated with crypto, right now there is no such tax. The matter is that crypto is not thought to be an asset.
NIF: the Essence of Receiving the Tax Number
It doesn’t matter what goals drive you to go to Portugal. Some people want to open their company in this country while others consider themselves to be digital nomads and would like to apply for a corresponding visa.
Anyway, it is going to be essential to obtain NIF. This can be done in one of the local tax offices in case you are already in Portugal. But mostly, those who have specific plans linked to going to Portugal are far away and need to deal with the remote option of receiving a NIF number.
Well, all you should do is present a few vital docs. These are a passport and proof of address. Then, you simply enclose them to the site of a provider you are about to select and pay a fee. Besides, there is taking such a step as filling out the application in case this is necessary.
As for the sum to pay, you should expect to be charged around 100 EUR if you stick to the assistance of the intermediary online. But this is a fine price that is paid for the effective service and minimum effort that has to be made.
So, stay determined on your way to achieving goals, and try to have fun while moving there!
Is NIF Going to Be Necessary for Any Other Situations Apart from Paying Taxes?
Sure! The role of a NIF number in Portugal cannot be underestimated. It doesn’t matter what you want to be involved in: NIF is about to be required even in the most casual cases. For instance, it has to be presented when you decide to sign a mobile phone contract. Besides, NIF has to be suggested when you intend to study in Portugal.
Moreover, NIF has to be given if you would like to buy property. Sure, such a plan may not be considered by you in the near future but who knows? There is a great likelihood that you will have such an intention later. Apart from this, NIF is a document that is required on the step of opening a bank account in Portugal (this, in its turn, can be vital for plenty of other actions too).
So, as you see, it is sensible to obtain NIF asap. As for the tax system in Portugal, it is well-thought and there is a chance to stick to the options that will be nice for you as a foreigner (like the NHR regime).
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