Portugal's trabalhador independente: recibos verdes, the €15,000 VAT exemption, and Segurança Social
Freelancing in Portugal means registering as a trabalhador independente with the tax authority, issuing recibos verdes, and — under the simplified regime — being taxed on a coefficient of your income. The VAT exemption rose to €15,000 in 2025.
This article is general information, not tax advice. Regulations change — verify the current rules with the official sources below before acting.
Freelancing in Portugal starts with an início de atividade — declaring your activity to the Autoridade Tributária (AT) through the Portal das Finanças. From there you issue recibos verdes (green receipts) for your work, and two regimes shape what you owe.
The simplified regime and its coefficients
By default you're on the regime simplificado (up to €200,000 of annual income). It taxes a coefficient of your gross income rather than profit: 0.75 for professional activities listed in article 151 CIRS, 0.35 for other services, 0.15 for goods and hospitality. Cross €200,000 for two consecutive years (or €250,000 in a single year) and you move to contabilidade organizada (organised accounting with real expense deduction).
The VAT exemption — now €15,000
Under Article 53 of the CIVA, you can be exempt from IVA if prior-year turnover stays at or under €15,000 — a figure raised from €13,500 by Decreto-Lei 35/2025, effective 1 July 2025. Exempt means you charge no IVA and reclaim none. Exceed the threshold by more than 25% (i.e. €18,750) and you must move to the normal VAT regime.
Segurança Social
Independent workers contribute at 21.4%, applied to a base of 70% of your service income (the monthly base is one-third of the prior quarter's relevant income). New freelancers get an automatic exemption for the first 12 months, and there's a small minimum monthly contribution once that ends. Because contributions track a rolling window of income, a quarter of strong invoicing raises your bill two quarters later — worth planning for.
General information about the Portuguese trabalhador independente regime, current as of the review date above, and not tax advice. Thresholds and rates change — confirm current figures with the Autoridade Tributária, Segurança Social, or a qualified contabilista.
Frequently asked questions
What is the VAT (IVA) exemption threshold in Portugal?
€15,000 of prior-year turnover, under Article 53 of the CIVA — raised from €13,500 by Decreto-Lei 35/2025, effective 1 July 2025. Below it you can be exempt from IVA (charge none, reclaim none). Exceed the threshold by more than 25% (€18,750) and you must switch to the normal VAT regime.
How is a Portuguese freelancer taxed under the simplified regime?
The regime simplificado applies up to €200,000 of income and taxes a coefficient of your gross income, not your profit: 0.75 for listed professional activities, 0.35 for other services, 0.15 for goods. Above €200,000 for two consecutive years (or €250,000 in one year) you move to organised accounting. Segurança Social is charged at 21.4% on a base of 70% of your service income, with the first 12 months exempt.