Banking & Finances

“First steps in Portugal — NIF, bank account, and MB Way: almost nothing works without them”

Opening a Bank Account

Required Documents

• NIF (Tax Identification Number) — see Visas & Residence
• Passport or Cartão de Cidadão
• Proof of address (rental contract, utility bill)
• Proof of income (required by some banks)

Account Types

• Conta à ordem — current account for everyday transactions
• Conta poupança — savings account with interest
• Conta não residente — for non-residents, with restrictions

Most expats need a conta à ordem — with a Multibanco debit card and MB Way access.

Banks in Setúbal

Traditional Banks

Digital Banks

International Services

For everyday life in Portugal, a Portuguese account (CGD, BPI, or Moey!) is recommended — needed for utilities, taxes, and Social Security. Revolut/N26 work well as a secondary option.

Cards & Payments

Multibanco

Portugal’s national payment network — one of the most advanced in the world. Over 12,000 Multibanco ATMs allow:

• Cash withdrawals and deposits
• Bill payments: utilities, taxes, fines (por referência)
• Phone top-ups and transport card recharges
• Bank transfers

MB Way

Mobile payment app — the de facto standard in Portugal:

• In-store payments — via QR code or NFC
• Person-to-person transfers — instant, by phone number
• Online shopping — virtual cards
• Bill splitting — “vaquinha” feature

Registration: through your bank’s app or at a Multibanco ATM. Requires a Portuguese phone number.

Contactless

All major banks issue contactless cards (up to €50 without PIN). Apple Pay and Google Pay are supported by most banks.

Taxes: IRS

IRS Brackets 2026

IRS (Imposto sobre o Rendimento das Pessoas Singulares) — personal income tax. Progressive scale with 9 brackets:

Minimum existence (2026): €12,880/year — income below this amount is not taxed.

Filing

• Deadline: 1 April — 30 June (for the previous year)
• Portal: Portal das Finanças — via CMD or eID
• Automatic declaration (IRS Automático): for simple cases (single income category, no extra deductions)
• Category A — employment; Category B — self-employment; Category E — investment income

Key Deductions

To claim deductions, you need your NIF on receipts — get into the habit of giving your NIF at shops, restaurants, and pharmacies.

IFICI (NHR 2.0) — Expat Tax Regime

Since 1 January 2025, NHR (Non-Habitual Resident) has been replaced by IFICI (Incentivo Fiscal à Investigação Científica e Inovação).

Key Conditions

• Flat 20% rate on employment and self-employment income in qualifying sectors
• Exemption for most foreign-sourced income (excluding pensions)
• Valid for 10 years from becoming a tax resident
• Application deadline: 15 January of the year after becoming tax resident

Who Can Apply

Unlike the old NHR, IFICI targets specific sectors:

• Scientific research and R&D
• Certified startups (Startup Portugal)
• Companies exporting >50% of turnover
• University teachers and researchers

IFICI is not suitable for retirees or remote workers without ties to Portugal’s innovation sector. For them — standard IRS applies.

Social Security (Segurança Social)

Contribution Rates

Self-Employed: How It’s Calculated

• Base = 70% of average income over the last 3 months
• Minimum monthly contribution — €20
• Maximum base — 12× IAS (IAS 2026 = €537.13)
• First year: exemption from contributions (first-time activity opening)

NISS

NISS (Social Security Number) is required for employment, healthcare, and benefits. See Visas & Residence for details.

Tax Office in Setúbal

Serviço de Finanças Setúbal 1

Online Alternatives

• Portal das Finanças — IRS filing, tax payments, IMI, IMT
• CMD (Chave Móvel Digital) — digital signature for government services
• ePortugal — unified public services portal

Foreigners can also get a NIF at Loja do Cidadão in Setúbal.

Useful Links

Information current as of February 2026. Portuguese tax law is actively changing — check current rates on official websites.