Considerations to be noted after registering as tax resident in Portugal
Author: Vanessa Laranjeira
Other than tax, there are many other procedures that a person must be aware of when moving to Portugal. Planning is essential to ensure that all these steps are completed successfully and on time.
In this article, we approach the main non-tax topics that must be considered when moving to Portugal.
- National Health Number (Número de Utente)
Foreign citizens legally living in Portugal may request the National Health Number, to have access to the public healthcare system. Most of the healthcare costs are covered by the State, although user charges (taxas moderadoras) may apply.
The national health number must be requested at the health center (Centro de Saúde) of the individual's area of residence. For that purpose, the individual must provide his/her tax identification number (NIF) and the residence certificate. Registration at a health center is free of charge.
Besides the registration in the national health system, foreign citizens usually subscribe a private health insurance to cover healthcare expenses where the public healthcare system cannot provide an appropriate answer (e.g., dentist appointments, eye doctor appointments, etc.).
- The European Health Card (EHIC)
The EHIC allows an individual that is insured or covered by a social protection system in one of the Member States of the European Union (EU) to obtain medical assistance from public healthcare providers during his/her temporary stay in another EU Member States, Iceland, Liechtenstein, Norway, Switzerland, or the United Kingdom.
Medical care is provided through that country's social security system, which means that some healthcare may not be free of charge and may require the payment of user fees.
The European Health Insurance Card can be applied for at any time and is valid for 3 years.
To apply for EHIC in Portugal, the foreign citizen must have the National Health Number or the Social Security identification number (NISS).
- Social Security identification number (NISS)
The NISS allows access to benefits and obligations of the Social Security system.
The NISS can be requested through a form on the Portuguese social security website.
For the NISS application, the following documents will be required:
- ID document, passport, the residence permit, or any other civil identification document; and
- Personal information (full name, date of birth, nationality, gender, marital status, tax residence and Portuguese tax identification number).
Once the request has been analysed by the services, the individual will receive an email confirming that the NISS has been assigned, with information to collect the document at one of the Social Security offices.
Note that, the NISS can only be collected by the individual that requested it, or by a lawyer or representative with a power of attorney.
- Certificate of registration for citizens of the European Union, European Economic Area and Switzerland
The Certificate of European Union citizenship formalizes the right of residence in Portugal for citizens of European Union, European Economic Area (EEA) and Switzerland.
This certificate must be requested at the City Hall of the individual's area of residence within 30 days after three months of entering in Portugal, along with the following documents:
- ID document or passport;
- Proof of tax identification number;
- Proof of tax residence in Portugal; and
- Statement that exercises a professional activity as a subordinate or self-employed person in Portugal or that has sufficient resources to support him/herself and the family members.
- Driving license
Driving licenses issued by European Union and the EEA member States are valid in Portugal until the expiry date indicated on the driving license.
However, the individual must register his/her residence at the Institute of Transport Mobility ("IMT - Instituto da Mobilidade dos Transporte") within 60 days of establishing residence in Portugal, through the respective internet site (link). For this purpose, the following documentation will be required: copy of the ID document, copy of the residence certificate from the Town Hall, copy of the driving license and digital medical certificate.
The driving licenses issued by OECD (Organization for Economic Co-operation and Development) and CPLP (Community of the Portuguese-Speaking Countries) countries may be accepted in Portugal if they meet specific requirements (e.g., the driving license was issued or renewed less than 15 years ago, the holder is under 60 years, the foreign driving license is still valid, etc.).
On the other hand, foreign citizens residing in Portugal with a non-EU nor EEA driving license (issued by countries with a bilateral agreement), must exchange their foreign license for a Portuguese one within 90 days of registering their residence in Portugal.
Driving licenses issued in non-EU countries are not recognized in Portugal.
After 90 days and up to 2 years, the individual can request an exchange of the driver's license, however, will no longer been able to drive in Portugal with the foreign license.
The foreign citizen must request the exchange of the driving license for a Portuguese license through this link.
Lastly, driving licenses issued by countries that have not adhered to the conventions are not valid for driving in Portugal. The titleholder can request the exchange of the driving title for a Portuguese driving license. However, besides the exchange requirements mentioned above, the holder must successfully pass a theoretical multimedia test and a practical driving test, for each category that the applicant holds.
- Importation of motor vehicles
Individuals changing their residency to Portugal may bring their vehicle through an importation process before the Portuguese Customs Authority, to be madeas soon as it arrives in Portugal.
The import of vehicles is subject to vehicle tax (ISV) and VAT. However, exemptions from these taxes are available, namely for persons that change their residence to Portugal and demonstrate that they already owned the vehicles before moving. The application of these exemptions is subject to the verification of specific requirements and deadlines, and, therefore, an increased attention should be given to this matter.
All vehicles must have at least third-party insurance cover. The insurance company will provide an insurance stamp for display in the lower right-hand corner of the vehicle’s windscreen, at the time the policy is issued. These documents, as well as the driver’s ID and license, should be carried at all times when using the vehicle.
- Wills
A foreign citizen residing in Portugal may organize his/her succession by choosing, during his/her lifetime, which law will apply to his/her succession.
Under the Portuguese law, as a rule, spouses and descendants (children) qualify as legitimate heirs. In specific situations, ascendants (parents, grandparents, great-grandparents) may also qualify as so.
Legitimate heirs are entitled, by law, to a portion of the inheritance, which the testator cannot dispose of – designated as “legitimate portion”. Therefore, the testator can only freely dispose of the remaining portion of his/her assets. Regarding this disposable portion, it must be defined in the will to whom it is assigned, as, in the absence of this document, the inheritance is distributed, in its entirety, to the legitimate heirs. Only in very specific situations can a legitimate heir be excluded from the estate (eg. in case the heir has committed specific crimes against the deceased).
If an individual does not make a will or does not state in the will the law that should regulate it, as a rule, the law to be applied to the succession will be the law of the individual's habitual residence at the time of death – in this case, Portugal.
This choice as to which law will govern the will is even more relevant in cases where an individual owns real estate in several countries. To avoid possible constraints at the time of succession, the individual may prepare and register a will for the Portuguese assets, which should be in line with the will registered abroad.
Wills in Portugal may be public, when written in a Notary Office, on the deed’s book, or sealed, when written and signed by the testator or by another person on his behalf. In this last case, it is still mandatory to be approved by a Notary, to ensure that the provisions are in accordance with the Portuguese Law.
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Tiago Almeida Veloso Tax Partner |
Vanessa Laranjeira Tax Senior In-charge |