Portugal freelancer tax calculator 2026

Updated 15/10/2026 · income tax and social security rules for 2026

Enter what you invoice and see how much goes to social security and income tax (IRS), how much your clients withhold and what you keep, per month and per year. Includes IRS Jovem and the IFICI 20% rate.

How much you invoice per monthHow much you invoice per year

Per month Per year

Invoice amounts, without VAT.

Type of activity

Sets the share of your invoicing that pays income tax: 75%, 35% or 15%. The code is on your activity registration. Find my code (in Portuguese).

How long you have been self-employed

Tax residence

Your situation I also have an employment contract

Gross monthly salary

Assumes 14 payments and 11% social security.

I invoice my employer (or a company in the same group)

I am 35 or younger and want IRS Jovem

IRS Jovem year

Counted from your first year with work income (employment or self-employment). Years without that income do not count. Age is checked on 31 December.

I am registered for IFICI (the "new NHR")

For people who moved to Portugal after 5 years abroad, in an eligible profession and for eligible clients. Your freelance income pays a flat 20% instead of the general rates, for 10 years. Cannot be combined with IRS Jovem. Who qualifies for IFICI.

Income tax rates

In force Cut approved on 9/10

Parliament approved lower rates for 2026, not yet published. For now they only exist for the mainland.

Expenses and deductions (optional)

Business expenses on e-fatura

Only count above 15% of your invoicing. Up to about €30,600 a year you do not need them.

Tax credits (deduções à coleta)

By default €250 of general family expenses, which almost everyone reaches. Add health, education, rent… or enter 0.

Enter how much you invoice to see your net income.

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How your net income is worked out

Freelancers in Portugal (on recibos verdes, "green receipts") pay two things: social security contributions every month and income tax once a year, in the tax return. Your net income is what is left of your invoicing after both.

Example: a consultant on the mainland invoicing €2,000 a month (€24,000 a year) pays €299.60 a month of social security and €2,353.36 of income tax for the year, keeping €18,051.44 a year, or €1,504.29 a month.

Art. 151 profession, mainland, more than 2 years self-employed, no employment contract
Invoiced per month	Social security / month	Income tax / year	Net / month
€1,000	€149.80	€0.00	€850.20
€1,500	€224.70	€1,462.70	€1,153.41
€2,000	€299.60	€2,353.36	€1,504.29
€2,500	€374.50	€3,336.00	€1,847.50
€3,000	€449.40	€4,749.48	€2,154.81
€4,000	€599.20	€8,107.41	€2,725.18

General rates or IFICI?

With IFICI, freelance income pays a flat 20% on taxable income instead of the progressive rates. Below a certain income the general rates are still cheaper, and you can choose them in the tax return. Same example as above:

Income tax for the year, art. 151 profession, mainland
Invoiced per month	General rates	IFICI	Net / month with IFICI
€2,000	€2,353.36	€3,360.96	€1,504.29
€3,000	€4,749.48	€5,204.02	€2,154.81
€4,000	€8,107.41	€7,201.92	€2,800.64
€6,000	€15,398.94	€10,802.88	€4,200.96
€8,000	€23,429.08	€14,403.84	€5,601.28
€12,000	€43,451.97	€22,609.56	€8,736.52

IFICI is not automatic and most freelancers working for foreign clients do not qualify. Read who qualifies for IFICI before counting on it.

Frequently asked questions

How much income tax do freelancers pay?

In the simplified regime only part of your invoicing is taxed: 75% for the professions listed in article 151 of the IRS Code (consultants, IT, design, engineering, translation and many more), 35% for other services and 15% for goods. The same progressive rates as for salaries apply to that amount.

In your first two years the percentages drop by 50% and 25% if you have no salary or pension. Above about €30,600 a year, in art. 151 professions, you need business expenses on e-fatura to avoid paying more.

What is withholding tax (retenção na fonte)?

An advance on your income tax that a Portuguese business client deducts from each invoice and pays to the tax authority: 23% for art. 151 professions and 11.5% for other services (20% with IFICI). Private clients and clients abroad do not withhold.

If you expect to invoice less than €15,000 a year you can opt out. The annual tax return settles the difference.

Do I pay Portuguese tax on work for foreign clients?

Yes, if you are tax resident in Portugal. Working from Portugal for a client abroad is Portuguese-source income: it goes in your Portuguese tax return and pays the same income tax and social security as work for a Portuguese client. Foreign clients just do not withhold tax or, if they are businesses, pay VAT. See the invoice calculator.

How does IRS Jovem work for freelancers?

Up to age 35, part of your work income is exempt in your first ten years with that income: 100% in year 1, 75% in years 2 to 4, 50% in years 5 to 7 and 25% in years 8 to 10, capped at 55 times the IAS (€29,542.15 in 2026). It applies to foreigners who become tax resident too, but not together with IFICI.

Are these figures official?

The rules and amounts are those in force in 2026, taken from the IRS Code, the Contributory Schemes Code and the VAT Code. The final amounts are those assessed by the tax authority and Social Security. Our methodology is described (in Portuguese) on the about page.

Legal basis: Art. 31.º do CIRS (coeficientes, redução no início de atividade, justificação de 15% das despesas); art. 68 CIRS; Código dos Regimes Contributivos, arts. 132.º a 168.º (Lei n.º 110/2009, na redação do Decreto-Lei n.º 2/2018); Art. 58.º-A do EBF (Lei n.º 82/2023) e Portaria n.º 352/2024/1, de 23 de dezembro; folheto IFICI da AT (março de 2025); retenção a 20%: art. 101.º, n.º 1, d) do CIRS; incompatível com o IRS Jovem desde 2025.