As a Portuguese freelancer, Amazon seller, investor, or business owner earning U.S.-source income, you may be required to apply for an ITIN (Individual Taxpayer Identification Number) issued by the Internal Revenue Service (IRS).

Under the U.S.–Portugal Tax Treaty, Portuguese residents can benefit from reduced or zero U.S. withholding tax on income such as dividends, interest, and royalties. However, to claim these treaty benefits and receive payments without interruption from platforms like Stripe, Payoneer, Amazon, Google AdSense, Fiverr, and Upwork, holding a valid ITIN is mandatory.

House of Bookkeepers, an IRS-Certified Acceptance Agent (CAA), helps applicants from Portugal obtain their ITINs securely and remotely, without the need to mail passports to the United States.

 

What Is an ITIN?

An Individual Taxpayer Identification Number (ITIN) is a nine-digit number (format: 9XX-XX-XXXX) issued by the IRS for individuals who need to file or report U.S. taxes but are not eligible for a U.S. Social Security Number (SSN).

🔍 What an ITIN is NOT:

  • Not a U.S. work permit
  • Not an immigration status
  • Not a substitute for an SSN
  • Not authorization to work in the U.S.

However, an ITIN is required for individuals in Portugal who want to legally receive payments from U.S.-based platforms such as Stripe, Upwork, Fiverr, Amazon KDP, Amazon Seller Central, Google AdSense, Etsy, Payoneer, and more.

 

Why Portuguese Freelancers and Business Owners Need an ITIN

If you’re a freelancer, creator, remote worker, entrepreneur, or investor based in Portugal earning U.S.-sourced income, an ITIN can help you:

  • Submit Form W-8BEN to claim U.S.-Portugal tax treaty benefits
  • Avoid the default 30% U.S. withholding tax
  • Prevent payment holds or account suspensions
  • Receive faster payouts from Stripe, Payoneer, and Amazon
  • File U.S. tax returns (Form 1040-NR) when required
  • Maintain long-term compliance with the IRS and payment platforms

 

Who in Portugal Commonly Needs an ITIN

Freelancers & Digital Professionals

Designers, developers, consultants, writers, and digital creators in Portugal earning via Upwork, Fiverr, AdSense, Amazon KDP, or Payoneer typically need an ITIN to:

  • Submit Form W-8BEN and stay compliant with U.S. tax laws
  • Avoid payment delays or account verification issues
  • File Form 1040-NR to claim refunds or maintain compliance

Amazon & E-Commerce Sellers

Portuguese sellers operating on Amazon FBA, Shopify, or Stripe Atlas need an ITIN to:

  • Correctly complete W-8BEN or W-9 forms
  • Prevent 30% default U.S. withholding
  • Manage tax filings for U.S. marketplaces or LLCs

Property Investors

If you own or sell U.S. real estate, FIRPTA (Foreign Investment in Real Property Tax Act) withholds 15% of the sale price.

Having an ITIN allows you to file Form 1040-NR and reclaim any excess withholding.

 

Filing Jointly with U.S. Spouse

If your spouse is a U.S. citizen or green card holder, an ITIN is required to file a joint return and access family-related tax benefits.

 

LLC Owners & Entrepreneurs

Portuguese residents who own or manage a U.S. LLC often need an ITIN for IRS filings. Essential documents typically include:

  • Articles of Organization
  • IRS EIN Confirmation Letter (CP575)
  • Operating Agreement (required for multi-member LLCs)

 

Benefits of Having an ITIN from Portugal

  • File U.S. tax returns legally
  • Reduce or avoid 30% U.S. withholding
  • Claim refunds on overpaid taxes
  • Reclaim FIRPTA withholding on property sales
  • Open and maintain U.S. business or payment accounts
  • Establish long-term credibility for U.S.-based business operations

 

U.S.-Portugal Tax Treaty Benefits

Portugal does have a tax treaty with the United States, allowing residents to benefit from reduced withholding rates on certain types of U.S.-source income.

Even when a situation does not qualify for treaty relief, Portuguese residents can obtain an ITIN for:

  • Platform withholding and reporting (Stripe, Payoneer, Amazon)
  • U.S. LLC or business tax filings
  • Financial institution compliance (KYC / FATCA)

This allows Portuguese applicants to submit Form W-8BEN, certify foreign status, and receive payments efficiently from U.S. platforms.

 

Income Type Default Rate Treaty Rate(Thailand)
Dividends 30% 15%
Interest 30% 0%
Royalties 30% 10%

 

To claim treaty benefits, you need:

  • A valid ITIN
  • A correctly completed Form W-8BEN
  • Form 8233 (for certain academic or research income)

How to Apply for an ITIN from Portugal in 2026

Step 1: Confirm Eligibility

Valid reasons include:

  • Filing Form 1040-NR
  • Claiming treaty benefits via W-8BEN
  • U.S. property transactions (FIRPTA)
  • Filing jointly with a U.S. spouse
  • Owning or managing a U.S. LLC
  • Receiving U.S. scholarships or research income
  • Banking or compliance requirements (KYC/FATCA)

💡 If you only need an ITIN for platform verification or withholding relief, you may qualify under an exception and not need to attach a tax return.

ITIN Eligibility Scenarios for Portuguese Applicants

Reason for Applying Description W-7 Box to Check Tax Return Required?
Filing a U.S. tax return Reporting freelance, investment, or property income b – Nonresident alien filing a U.S. tax return ✅ Yes (attach Form 1040-NR)
Claiming treaty benefits via W-8BEN Avoiding 30% withholding on platforms like Amazon, AdSense, Payoneer, Upwork h – Exception 1(d): Third party withholding ❌ No (treaty exception category)
U.S. rental or sale (FIRPTA) Reporting real estate sale or rental income b (if filing) or  h (if exception) ⚙️ Depends
Filing jointly with a U.S. spouse Joining a U.S. joint tax return e – Spouse of U.S. citizen/resident ✅ Yes (joint return)
Owning or managing a U.S. LLC Required for foreign reporting or EIN activation b or h (if treaty applies) ⚙️ Depends
Receiving U.S. scholarships or grants Nonresident student or researcher receiving taxable U.S. funds f – Nonresident alien student/professor/researcher ⚙️ Depends on institution
Bank or financial compliance Needed for U.S. banks, brokers, or FATCA purposes h – Exception 1(d) ❌ No (exception category)
Refund claim for excess withholding Claiming refund on U.S. source income b – Nonresident alien filing a U.S. tax return ✅ Yes (attach Form 1040-NR)

Note: Exception 1(d) applies to platform withholding, U.S. banking compliance, and LLC filings.

 

Step 2: Complete Form W-7

  • Official IRS ITIN application form
  • Accuracy is critical to avoid delays or rejection

Step 3: Gather Required Documents

  • Valid passport (scan accepted when using a CAA)
  • U.S. tax return (unless exempt)
  • Supporting documents (W-8BEN, income statements, property papers, etc.)

Step 4: Apply Through a Certified Acceptance Agent (CAA)

With House of Bookkeepers:

  • Your passport stays in Portugal
  • Identity verified locally
  • Certificate of Accuracy (COA) issued
  • Secure submission to the IRS

ITIN Processing Timeline (2026)

  • Standard: 8-13 weeks
  • Peak season (Jan–Apr): 13-16 weeks
  • CP565 letter may arrive slightly later

 

Common Mistakes to Avoid

  • Incomplete or incorrect W-7 forms
  • Using uncertified passport copies (without a CAA)
  • Missing required tax returns
  • Mailing originals via unreliable couriers
  • Assuming an ITIN grants work authorization

 

Quick FAQs for ITIN from Portugal

Q1. Can I apply for an ITIN from Portugal?

Yes. With House of Bookkeepers as your IRS CAA, you can apply directly from Portugal.

Q2. Does Portugal have a tax treaty with the U.S.?

Yes. The treaty reduces withholding on dividends, interest, and royalties.

Q3. How will I know my ITIN is approved?

You’ll receive IRS Letter CP565 once issued.

Q4. Do I need a U.S. address?

No. The IRS can mail your ITIN letter to Portugal.

Q5. How is identity verified?

We verify identity securely using passport validation and a compliance selfie.

 

Apply with Confidence

House of Bookkeepers ensures ITIN applications for Portugal-based professionals are simple, accurate, and fully IRS-compliant.

📍 IRS-Certified Acceptance Agent (CAA) – Portugal Service

🌍 Website: https://www.houseofbookkeepers.com

Start your ITIN application today and unlock U.S.-Portugal treaty benefits, faster payments, and stress-free IRS compliance.