Portugal Freelancer Tax Calculator

Under the simplified regime (Regime Simplificado), only 75% of your gross income from services is considered taxable. This 75% coefficient is defined in Artigo 31.º of the CIRS. The remaining 25% is assumed to cover your business expenses — you do not need to deduct individual expenses.

IRS is calculated by applying progressive tax brackets (Artigo 68.º CIRS) to your taxable income (75% of gross). The 2026 brackets range from 12.5% on the first €8,342 to 48% on income above €86,634. Recibo Simples applies each bracket automatically.

Independent workers pay Social Security on 70% of their gross income at a rate of 21.4% (Código Contributivo, DL 2/2018). Payments are monthly and based on the previous quarter's declared income. New freelancers are exempt for the first 12 months.

When invoicing companies or entities with organised accounting, they may withhold IRS at source (typically 25%, or 11.5% if you earned less than €15,000 in the previous year). This is an advance payment — the withheld amount is subtracted from your final IRS bill when you file your annual declaration.

If your annual gross income is below €15,000, you are exempt from IVA under Artigo 53.º of the CIVA. Once you exceed this threshold, you must register for IVA and charge the applicable rate (usually 23%) on your invoices.

The annual IRS declaration period runs from April 1 to June 30 each year, for income earned in the previous calendar year. You file via the Portal das Finanças (portal.portaldasfinancas.gov.pt).