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Portugal Freelancer Calculator

Estimate your net income as a Trabalhador Independente (Regime Simplificado)

€

Business invoices via e-fatura (equipment, software, services). SS contributions are counted automatically. Together must cover 15% of gross to avoid a penalty.

ℹ️ Regime Simplificado coefficient: IT services (code 1320) — only 75% of gross revenue is subject to IRS.
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Enter your revenue to see results

Common Questions

When your client is outside the EU (US, UK, Canada, etc.), your services qualify as export. Under the EU Reverse Charge rule, IVA = 0% — you invoice your full rate and receive exactly that amount. Your output VAT obligation to the state is zero.

Here's where it gets interesting: you still pay 23% VAT on every purchase you make in Portugal — a laptop, a software licence, a coworking desk.

Registered under Regime Normal (VAT payer), that input VAT is not a cost — it's a credit. Every quarter you file a declaration:

•Output VAT (your sales): €0
•Input VAT (your purchases): total spend × 23%
•Result: the state owes you the difference — paid as a cash refund to your bank account, or carried forward as credit.

What qualifies for reclaim: hardware (laptops, monitors, phones, tablets), software licences (JetBrains, AWS, Figma, SaaS subscriptions), internet and mobile plans registered to your NIF as a business, coworking or office rent. In practice, every professional purchase becomes 23% cheaper — the state effectively co-funds your work setup.

Regime Simplificado is the standard self-employment regime for annual revenues under €200,000. The tax code (Art. 31.º CIRS) automatically grants a structural 25% business expense deduction — no receipts required. IRS is therefore applied only to 75% of your gross revenue (the “taxable base”).

However, that 25% deduction splits into two parts:

•10% — unconditional, no documentation needed.
•15% — must be backed by proven expenses: e-fatura invoices + SS contributions.

If proven expenses fall below 15% of gross, the gap is added back to your taxable base as a penalty. For most IT contractors, SS contributions alone (∼15% of gross) cover this threshold, so no penalty arises.

The alternative is Contabilidade Organizada (full bookkeeping), worth it only if actual costs exceed 25% of revenue.

As a trabalhador independente you contribute 21.4% to Segurânça Social. The base is not your full gross — it’s 70% of your average monthly revenue of the preceding quarter.

Effective cost: approximately 15% of gross (21.4% × 70%).

Key rules:

•Year 1 (first 12 months): SS fully exempt — you pay €0. Applies to new activity registrations.
•From month 13: quarterly contributions, reviewed every 3 months based on actual earnings.
•SS contributions count as documented expenses for the 15% expense trap (Art. 31.º CIRS).

The year 1 exemption is a major benefit — you keep 100% of revenue minus only IRS.

NHR 2.0, officially IFICI (Incentivo Fiscal à Investigação Científica e Inovação), replaced the old Non-Habitual Resident scheme (closed to new applicants in 2024).

Key benefit: 20% flat IRS rate instead of progressive rates up to 48%.

Who qualifies:

•IT, software, and technology professionals
•R&D, scientific research, and innovation roles
•Must not have been a Portuguese tax resident in the 5 years prior to application

Duration: year of registration + 4 more years = 5 years total.

When is it worth it? NHR 2.0 saves money above roughly €25,000 taxable base, where the progressive rate exceeds 20%. At €80,000 taxable base, the annual saving can exceed €10,000. The “NHR 2.0 vs Standard” comparison in our calculator shows the exact difference.

How to apply: register via the AT (Autoridade Tributária) portal after establishing tax residency. Deadline: 31 January of the year following registration.

Regime Simplificado grants a structural 25% deduction, split into:

•10% — unconditional, no receipts needed.
•15% — must be covered by proven expenses: SS contributions + e-fatura invoices.

If proven expenses are less than 15% of gross, the shortfall is added to your taxable base as a penalty.

What counts as proven expenses:

•SS contributions (automatically counted)
•Hardware and computer equipment
•Software licences and SaaS subscriptions
•Professional services and accountant fees
•Coworking / office rent
•Internet and mobile registered to your NIF as business

For most IT contractors, SS contributions alone cover the 15% threshold. Our calculator shows in real time whether you’re above or below the limit.

Year 1 (first 12 months after registering activity):

•SS fully exempt — you pay €0.
•Taxable base coefficient is halved: 0.75 × 50% = 0.375. Only 37.5% of gross is subject to IRS.
•Year 1 is usually the most tax-efficient year for a new Portuguese freelancer.

Year 2 (calendar year after registration):

•SS kicks in from month 13 of activity.
•Coefficient reduced by 25%: 0.75 × 75% = 0.5625. IRS on 56.25% of gross.

From year 3 onwards:

•Full regime: coefficient 0.75, full SS ∼15% of gross.

Important: these reductions only apply on your first registration of activity (início de atividade). Consult a certified accountant (contabilista certificado) to confirm eligibility.