How to obtain a Tax Identification Number (NIF) / Taxpayer Number
To be registered in the Tax Administration database, you need to request a Tax Identification Number (NIF) / Taxpayer Number. Any citizen, national or migrant, regular or not, can request a NIF.
To do this, you must go in person to one of the tax offices and request your NIF. It’s free and issued immediately.
How to Register as Self-Employed with the Tax Authority – Green Receipts
To start your activity with the Tax Authority and become self-employed, you must first have a NIF. You can register in person at a tax office or online if you already have an account by logging into the Portal das Finanças and navigating to 'All Services → Start Activity → Submit Declaration.
Important things to know:
- You must choose a CAE code or an Article 151º CIRS code, indicating the type of activity you will perform. Different professions may have different tax rates.
- You need to estimate your expected annual income. This helps the tax authority determine if you must charge VAT and withhold IRS on your receipts. VAT must be added to service prices and paid to the state if your annual self-employment income exceeds €10,000. It can be paid quarterly or monthly if your turnover exceeds €650,000. You can also voluntarily pay VAT monthly, which binds you for at least one year. IRS must also be withheld at source if your annual income exceeds €10,000.
- You must choose between simple accounting, where you handle your tax obligations yourself, or organized accounting, managed by a Certified Accountant (TOC). Organized accounting is mandatory if your annual turnover exceeds €200,000. With simple accounting, a fixed taxation rate applies (usually 75% of income taxed, 25% exempt). With organized accounting, you must provide documentation to prove profits and expenses.
If you decide to close your activity, make sure to formally notify the Tax Authority. This can be done in person or online. Also, ensure that all taxes and social security contributions are fully settled to avoid any unpleasant surprises if you plan to reopen your activity in the future.
