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@solmaz piri

You can't. If you change the NIF in a rental contract, you are creating a new contract with another tax entity. So, at the portaldasfinancas website you have to end the old contract that was with a private individual and create a new contract with the company.

@JohnnyPT

Thank you very much.

Now 2 more questions rise:

1- I am an individual (not a company) and my only income is this rental income. Is it possible that I continue receiving the rent in total like before? And then declare income in my IRS? because I was told that if I rent to a company, the company will keep 25% of the rent as my IRS on a monthly basis.

2-I have also been told that if I take the contract to be registered on Financas website I have to pay a one off 10% IVA. Is this obligatory?

Thanks for your time and reply.

1 True. There is a withholding of 25 % of the monthly rent. However, in your annual IRS statement, this amount that has been withheld will be taken into account in the total calculations. This amount withheld will automatically be placed by the system in Annex F of your tax return, as the amount that was withheld by the company, and which you didn't receive.

(art. 101º, Nº1, Alínea E do CIRS)

2. True,  when you sign a new contract, the landlord has to pay stamp duty ( not IVA as you've said), which is 10% of the rent.

@JohnnyPT

Thank you for your reply.

Is it the system that defines this 25% retention? Because my friend told me that he has not opted for this and declares his yearly IRS without retention although he is renting his property to a company and the rent is his only source of income in Portugal.

Could you comment on this?

Thanks

Withholding 25% of the rent is compulsory when the tenant is a company with organised accounting. That's written in the first link. Pls use your browser's translator.

A company has organised accounting when its income exceeds 200,000 euros/year. When the company's income is less than this amount, it can opt for a simplified accounting system, and if so,  the company  may not withhold the 25% of the rent/month.