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Portuguese NIF?

So I've just completed a wonderful week in Portugal (spent time in Porto, Madeira, and Lisbon), flying out to Budapest tomorrow. But I came across something interesting today (last day) that I hadn't encountered up until now which was various proprietors asking for my tax ID number. I just explained I didn't have one, but just curious what this was all about?

Posted by
386 posts

The NIF is similar to the Canadian SIN.

Everytime a purchase is made the NIF can be entered into a lottery run by the government tax department , cash prizes are awarded monthly, that's the reason the merchant asks for the NIF and it's optional.

Most people want to enter the lottery and the government has a very effective yet voluntary reporting of every transaction without hiring additional agents.
This has almost put a stop to the cash " under the table" type of transactions.

Posted by
1843 posts

I have never heard of that explanation. The NIF is similar to a social security number in the states, but not really. It has to do with taxes. When paying one’s taxes in Portugal, expenses such as food, medication, etc. can be deducted so one pays less taxes at the end of the year. Anyone who immigrates here is required to have one. There may be a lottery, but I have ever heard about that after living here for nine years.

Posted by
386 posts

Kathrynj

It's called Fatura da Sorte, started in 2014.
This link shows the prize awarded to someone in Braga for €35.000 in December 2023.
https://faturas.portaldasfinancas.gov.pt/FatSorte/home

In 2024 the government temporarily suspended the lottery while new protocols are being created, meanwhile the prize money purse continues to accumulate and is now over 2 million.
This link is in Portuguese, it explains the temporary suspension.
https://executivedigest.sapo.pt/noticias/governo-suspendeu-fatura-da-sorte-e-ha-dois-milhoes-de-euros-de-premios-acumulados-por-distribuir/

I'm fluent in Portuguese so I don't need it but if you're not you might try Google translate.