Enchanted by the Portugal and planning to move there in 2014? You won’t get far without registering for your residency and tax ID cards, as Algarve resident and author of the PortugalBuyingGuide.com explains…

Article written by The Overseas Guides Company

Portugal is part of the European Union, but like most EU countries has some country-specific rules that all new arrivals must follow. If you’re going to have any kind of official existence in Portugal, the first thing you need is a fiscal number. Locally this is also known as a Número de Identificação Fiscal (NIF), or sometimes a Número de Contribuinte.

You need a fiscal number to do most bureaucratic things in Portugal, and that includes buying a property. It also includes setting up phone lines or Internet connections. You can get a fiscal number as a non-resident.

Obtaining a fiscal number is one of Portugal’s easier bits of red tape. Generally you just need to visit your local Financas department with some official identification (such as a passport). If you are obtaining a fiscal number whilst living in Portugal you will also need proof of address.

There is a small fee for processing the fiscal number (less than €10), and you can usually get it on the spot with no difficulties. The only time people seem (anecdotally) to have problems is when they have previously opened a Portuguese bank account from the UK branch of a Portuguese bank. Sometimes the banks are said to generate “temporary” fiscal numbers to open accounts, which then have to be cancelled before “real” fiscal numbers are given. This does seem to be an unlucky rarity, however.

Onto residency. The exact process depends on whether you are an EU citizen or if you have arrived from elsewhere. If you are a non-EU citizen, you must visit the SEF (Serviço de Estrangeiros e Fronteiras), and exact requirements will vary depending on your origin. Also, non-EU citizens with a certain amount of capital to invest may also be entitled to the new Golden Visa. The Portugal Buying Guide can offer more information on this.

For EU citizens, initial residency is handled by your local town hall (camera). Many people refer to the document you need as “residencia,” but the correct term is actually “Certificado de registo de cidadao da uniao Europeia.” It’s essentially a certificate that registers your long-term presence in the country.

The registration certificate usually lasts for five years and obtaining it should require you to visit the camera with identification, proof of address, your fiscal number and the willingness to declare that you are “financially independent.”

In many cases it is this simple, however there is plenty of anecdotal evidence to suggest that the town halls often request additional documentation, ranging from bank statements to employment contracts or proof of private health insurance. Essentially, it’s all about proving you won’t be a burden on the state, and some town halls will make you jump through hoops to show it.

Don’t worry unduly about this. As an EU citizen, it is (currently) your right to live in Portugal, but do take all the paperwork you have with you and prepare to be asked for the one document you don’t have to hand! After you’ve had the registration certificate for five years, you can visit the local SEF office and request permanent residency.

Finally, it’s worth being aware that plenty of expats will tell you “not to bother” with residency or to “stay under the radar.” This is not a wise thing to recommend. The Portuguese government can technically fine you for not following the residency process, and they are increasingly clamping down on those who don’t play by the rules. If you decide to take the “under the radar” approach, you will only have yourself to blame if, at some point in the future, something important becomes unexpectedly complicated.

If you are on the verge of buying property in Portugal or moving there, a simple way to save money is to use a currency exchange specialist when transferring your pounds into euros. For more information on this, download Smart Currency Exchange’s free report or visit the Currency Zone.

For more information on buying property successfully in Portugal download the Overseas Guides Company’s free Portugal Buying Guide – and start receiving free news updates by email. Or to see property for sale all over Portugal, visit Rightmove’s Portugal listings.