Managing your banking, money, and taxes in Portugal will be easy as the country boasts a modern and efficient banking system.
Banks in Portugal offer various accounts and financial services, including current and savings accounts, joint accounts and business accounts. Online banking is a standard feature of bank accounts in Portugal.
Money in Portugal
The Euro (EUR) is Portugal's official currency. One euro is divided into 100 cents.
- Notes: EUR 5, EUR 10, EUR 20, EUR 50, EUR 100, EUR 200, and EUR 500
- Coins: EUR 1, EUR 2 and 1 cent, 2 cents, 5 cents, 20 cents, and 50 cents
Banking in Portugal
Portuguese banks are part of a national grouping of banks called Multibanco. This makes accounts easily accessible, and account holders may use a Multibanco debit card in ATMs across the country and for buying most goods.
Opening a bank account
Opening a bank account in Portugal is fairly straightforward. You will need to visit a bank branch in Portugal with certain documents, including proof of identity and address. Documents may vary between banks, so you should check with your chosen bank.
Some banks may also require your Portuguese tax identification number, known locally as a Número de Identificação Fiscal (NIF). You must also deposit a minimum sum to activate the bank account.
Multibanco
The Multibanco system in Portugal is lauded for allowing its users various conveniences. In addition to normal withdrawal and transfer services, at a Multibanco ATM you can:
- Pay certain utility bills
- Load talk time onto mobile phones
- Pay income tax and value-added tax
- Purchase concert tickets
- Pay motor tolls
Credit cards and ATMs
Credit cards and debit cards are widely accepted throughout Portugal. Transaction charges do apply for those using international cards in Portugal, though.
You can easily find ATMs in most town centres and urban areas, and they accept major foreign cards. They also tend to provide better exchange rates than those offered by bureaux de change and are therefore a convenient way to access money in Portugal, especially for those without a Portuguese bank account.
Taxes in Portugal
In Portugal, residents and non-residents are taxed differently. To be considered a resident for tax purposes, a person must reside in the country for 183 days of the year or have a permanent home in Portugal. If someone is considered a resident, they are liable to be taxed on their worldwide income.
For tax residents, tax is charged according to a sliding scale based on the individual's global income. Non-residents are taxed only on income derived from within Portugal, usually at a flat rate.
As an expat, you may be concerned about being simultaneously taxed in Portugal and your home country, but in many cases, treaties exist to prevent double taxation. Often, becoming a resident of Portugal can exempt you from higher overseas taxes. It's a good idea to consult an international tax planner to find the most advantageous tax plan.