If you’ve lived in Portugal for any length of time, you’ve likely been asked, “Contribuinte on the bill?” For newcomers, this seemingly simple question can be puzzling. What is a NIF (Número de Identificação Fiscal)? Is it mandatory to give it? What are the benefits of sharing it, and could it actually make you money? Let’s dive into the fascinating world of Portugal’s Contribuinte system and explore why giving your NIF when shopping is not only a smart choice but also potentially rewarding. I’m Lisbob, the expat’s assistant, and I will tell you how to make money by giving your NIF.
The origin of the Contribuente system
The Contribuinte number, or NIF, was introduced as part of a government initiative to combat tax evasion and the underground economy. By encouraging consumers to request invoices with their NIF, the system ensures that more transactions are recorded and taxed appropriately.
This measure began in 2013, alongside the partial reimbursement of VAT for specific expenses, and has since expanded to include more categories. The results have been remarkable. According to official figures from Finanças, over 4 billion invoices were issued and recorded between January and October last year—an increase of over 10% compared to the same period the previous year. This transparency is one of the factors credited with Portugal’s recent economic growth, as more money circulates through legal and taxable channels.
Is giving your NIF mandatory?
While it might seem like it’s the merchant’s responsibility to issue an invoice with your NIF, the obligation actually falls on the consumer. Historically, this was enforced through surprise inspections at supermarkets, where officials would ask shoppers to show proof of their purchases. Non-compliance could lead to fines of several hundred euros.
Although such checks are now rare, the requirement to justify your purchases remains in effect. But avoiding penalties isn’t the only reason to give your NIF—it can also save you money and bring unexpected rewards.
Why give his NIF when shopping?
Many expats and locals see giving their NIF as tedious or unnecessary. However, it can actually save you money—sometimes hundreds of euros per year. Here’s how it works:
When you provide your NIF during purchases, the state tracks eligible expenses in categories like dining, transportation, or personal care (e.g., hairdressers). At the end of the year, you can claim up to €250 in tax credits across these categories.
For example, simply adding your NIF to your monthly public transportation pass could earn you €81 back by year-end. If you combine eligible expenses across multiple categories, the savings can be significant and can reach more than €1.000 if you include everything.
You can track the tax credit in each category on the website e-fatura.
These tax credits are applied when filing your annual tax return (IRS), often reducing the taxes you owe or even leading to a refund. For many, this means receiving extra cash just before summer holidays—perfect timing!
Contribuinte: How Giving Your NIF Can Save You Money (and More)
Win big: the tax lottery
Beyond tax credits, giving your NIF can also make you eligible for Portugal’s “Fatura da Sorte” (Lucky Invoice) lottery. Introduced in 2014, this initiative encourages consumers to demand invoices by offering luxurious prizes such as sports cars. Even their website looks like a betting or casino website.
Here’s how it works:
• For every €10 spent (or an indivisible fraction thereof), you earn one lottery coupon.
• If your total invoices add up to €70.20, you’ll receive eight coupons for the lottery.
Weekly “regular draws” and semi-annual “extraordinary draws” (held in June and December) randomly select winners. Prizes often include high-end cars, making it one of the more unusual perks of participating in the tax system.
You can check your lottery coupons and results through the Portal de Finanças.
To conclude Bob reminds you that fighting tax evasion is good, but being able to earn money and even sports cars is even better! Giving your NIF can seem useless and laborious especially when we have just arrived but the benefits can be important.
Why you should care
Fighting tax evasion is important, but the benefits of giving your NIF go beyond ethics. From direct savings on everyday expenses to the thrill of winning a luxury car, the advantages are tangible.
At first, sharing your NIF may feel like a hassle, especially for newcomers adjusting to life in Portugal. But once you see the financial and potential rewards, it’s a habit worth adopting. So next time someone asks, “Contribuinte on the bill?”, don’t hesitate—say yes!
Pro Tip: Keep track of your invoices and ensure your NIF is added correctly to maximize your benefits.
By giving your NIF, you’re not just participating in Portugal’s fight against tax evasion—you’re also putting money back in your pocket. So, what’s stopping you?
