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Around the internet I have read that have unique permissions for items within a document library can affect performance.

Is this still valid for SharePoint online?

I am writing an add-in and want to have unique permissions within a document library that can store upto 5000+ documents.

Thanks

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Yes, it's still valid, as it's still a SharePoint.

You can read more about the limits at TechNet site: https://technet.microsoft.com/en-us/library/cc262787.aspx

As you can see limitation are the same for SharePoint 2013 on premise and SharePoint online

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    thanks for the reply. In the technet article link there is a line "he number of uniquely scoped children is not a significant issue, and can scale to large numbers. The number of principles that will be added as limited access up the chain of scopes to the first uniquely-permissioned web will be a limiting factor" in my case i wont be having more users. lets assume it may not exceed 100 users. will i have a major performance impact? if i had more unique permissioned items. – Pubudu Tennakoon Jan 21 '16 at 12:04
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    It's not easy to predict... I have discover that very similar tenants configurations can have different behaviours. In general your tenant it's a part of the bigger installation, and if other tenant do not require to much resources it could work, and in other case it could a problem. I have similar problem with workflow which was working perfect in one tenant and in another there were a problem with performance... You have to made a test. Or someone else can share his experience. – Tomasz Szulczewski Jan 21 '16 at 14:18

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