Recibos Verdes Fácil
Portugal freelancer tax calculator 2026
Updated · 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.
Result
| Yearly invoicing (without VAT) | €44,160.00 |
|---|---|
| Social security (€551.26 a month) | − €6,615.12 |
| Income tax (IRS) | − €7,042.33 |
| Net per year | €30,502.55 |
Withholding tax of 23%: €10,156.80 a year (€846.40 a month), if your clients are Portuguese companies.
In your tax return you get back €3,114.47.
Clients abroad never withhold Portuguese tax.
How we got to the income tax
| Coefficient (art. 151 profession) | 75% |
|---|---|
| Invoicing × coefficient | €33,120.00 |
| − Social security above 10% of invoicing | €2,199.12 |
| + Unjustified expenses (15% rule) | €2,036.91 |
| Taxable freelance income | €32,957.79 |
| Taxable income | €32,957.79 |
| Average tax rate | 22.13% |
| Tax before credits | €7,292.33 |
| − Tax credits | €250.00 |
| Income tax | €7,042.33 |
- Companies and other clients with organised accounting withhold 23% of each invoice. It is an advance on your income tax, settled in the following year's tax return. Private clients and clients abroad do not withhold.
- Above €15,000 a year in Portugal you lose the VAT exemption: the following year or, above €18,750, straight away. VAT is added to the invoice and passed on to the State, so it does not change your net income. Invoices to foreign businesses under the reverse charge do not count towards the limit.
- You are €2,036.91 short of business expenses on e-fatura to justify the 15% required in the simplified regime. That amount is added to your taxable income. If you have expenses, enter them under "Expenses and deductions".
- For a single person with no dependants, taxed individually and resident in Portugal for the whole year. Does not include payments on account, work accident insurance or other business costs.
* Illustrative calculation using the 2026 rules. It does not replace the tax authority's assessment, the contributions set by Social Security or professional advice.
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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.
| 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:
| 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.