Skip to content 
Looking to register as a freelancer in Portugal? The process is simpler than many expect, as long as you know the steps. Whether you’re moving to Portugal, already living here, or planning to work remotely for international clients, becoming a “trabalhador independente” opens the door to legal invoicing, tax benefits, and full access to the Portuguese system.
Who Can Become a Freelancer in Portugal?
Dito pelo ChatGPT:
Why Working as a Freelancer in Portugal
Being a freelancer in Portugal offers many advantages, but it also comes with responsibilities such as tax compliance and social security contributions. If you are ready to embark in this journey here are some of the advantages of working as a freelancer in Portugal:
Working as a freelancer in Portugal comes with several advantages that make the country especially attractive. First, you benefit from access to the entire EU market, giving you a huge pool of potential clients and collaborators across Europe. Portugal’s EU membership makes cross-border work straightforward and highly appealing for international professionals.
You’ll also find a thriving freelance community here. From co-working hubs to regular meetups and industry events, freelancers in Portugal have plenty of opportunities to network, share ideas, and build partnerships that help their businesses grow.
On top of that, Portugal offers a cost of living that’s generally more affordable than many other Western European countries. While major cities like Lisbon and Porto can lean higher, the overall lifestyle cost remains competitive, making it easier to live comfortably while running your freelance business.
Is Better to Register as a Freelancer or Open a Company in Portugal?
When establishing your business presence in Portugal, you face the choice between launching an individual company or registering as a freelancer. Typically, if you’re operating solo, creating a company may not be the most practical route.
As a freelancer or independent worker (trabalhador independente), you maintain a flexible association with multiple clients rather than being tied to a single entity.
Opting for freelance status offers several advantages over forming a company. These include lower social security contributions and tax exemptions for earnings below €12,500, particularly benefiting certain types of occupations.
Furthermore, running a business also requires you to hire a full-time employee, which can cost monthly from €250.
Required Documents to Register as a Freelancer in Portugal
Tax Identification Number (NIF)
To register as a freelancer in Portugal, you will need to provide several essential documents and identification numbers. Here’s a breakdown of the required documents:
The NIF, also known as the Fiscal Identification Number, is a unique tax identification number that is crucial for any financial activity in Portugal.
If you are from a country outside the EU/EEU you will need to appoint a tax representative. Your tax representative can be an individual or company residing in Portugal.
Portuguese Bank Account
You must have an International Bank Account Number (IBAN) to receive payments and manage your finances as a freelancer in Portugal. You’ll get an IBAN when you open a Portuguese bank account, and it’s best to choose a bank that offers services tailored to freelancers—such as low fees, easy online banking, and tools for handling international transfers.
Residency Certificate
A residency certificate confirms your legal right to live and work in Portugal.
EU Citizens
EU/EEA citizens can obtain the EU certificate (CRUE) by visiting their local Junta de Freguesia (parish council) with:
- Your NIF
- A rental contract or other proof of accommodation
- Your passport or ID card
Non-EU/EEA Citizens
If you’re a non-EU/EEA citizen, you must apply for a residency visa or work visa first. Once your residence permit is issued, you’ll have the legal status required to work as a freelancer in Portugal.
Social Security Number in Portugal (NISS)
The NISS, or Social Security Identification Number, is necessary for registering with the Portuguese Social Security system (Segurança Social) since Freelancers are required to contribute to Social Security in Portugal.
How to Apply for a Social Security Number (NISS) in Portugal
Applying for a Social Security Number (NISS) in Portugal is a straightforward process and essential for freelancers, employees, and anyone legally living in the country.
Where to Apply
You can request your NISS at a Segurança Social (Social Security) office. Some municipalities also allow online or assisted applications, but most people apply in person.
Required Documents
- Your passport or ID
- Your NIF (tax number)
- Proof of residency in Portugal
- Your work contract or freelancer registration
How the Process Works
- Visit your nearest Social Security office.
- Take a ticket and submit your documents.
- Fill out a short form with basic personal information.
- Once approved, your NISS is issued—sometimes on the same day, or within a few days depending on the office.
Registering as a Freelancer in Portugal: Step-by-Step Guide
Step 1: Gather all required documents
You’ll need your NIF, residency certificate or residence permit, a Portuguese bank account with an IBAN, and your NISS (social security number).
Step 2: Log in to the Tax Portal (Portal das Finanças)
Access your personal account in Portal das Finanças using your NIF and password. If you don’t have an account yet, you can request login credentials directly on the portal.
Step 3: Open your activity (“Início de Atividade”)
When registering your self-employed activity on the Portal das Finanças, you will need to:
- Select your professional activity (CAE/CIRS code)
- Enter your expected annual income
- Decide on your accounting framework. Most freelancers choose the simplified regime (regime simplificado), which is straightforward and suits those with simple finances and lower to medium incomes. If your earnings are higher or you prefer more detailed financial management with the support of a certified accountant, you can opt for organized accounting (contabilidade organizada) instead.
Indicate whether you qualify for VAT exemption under Article 53
Step 4: Confirm social security registration
Once your activity is open, Social Security will automatically be notified. If you’re new to freelancing, contributions will begin after the standard waiting period, unless you opt in earlier.
Portugal Taxes for Freelancers in Portugal
Income tax for freelancers in Portugal, often refers to as Personal Income Tax (Imposto sobre o Rendimento das Pessoas Singulares or IRS), is levied on the income earned by self-employed individuals.
Portugal uses a progressive tax system for individuals, including freelancers. The income tax rates can vary depending on the total annual income. Individuals in the lowest income category will be subject to a 14.5% tax rate, while those in the highest income bracket will face a 48% tax rate.
Moreover, if your annual earnings exceed 80,000 euros, you’ll also have an obligation to pay a solidarity tax, which falls within the range of 2.5% to 5%.
Tax Deductions for Freelances in Portugal
Freelancers in Portugal can benefit from various tax deductions and allowances, which can help reduce their taxable income. These deductions may include:
- Health and education expenses.
- Mortgage interest.
- Donations to recognized charitable organizations.
- Retirement savings contributions.
- Business-related expenses.
It’s important to keep thorough records of your income and expenses to accurately claim deductions and reduce your taxable income.
IRS Declaration for Freelancers in Portugal
In addition to quarterly payments, freelancers are required to submit an annual income tax return by April 30 of the following year. This return reconciles your actual income and expenses, allowing you to adjust for any overpayments or underpayments made during the year.
Social Security Contributions for Freelancers in Portugal
Freelancers in Portugal are also required to make social security contributions (Segurança Social) based on their income. These contributions provide access to social benefits, including healthcare and pension benefits.
Upon your registration as self-employed in Portugal, you will enjoy a 12-month grace period during which you are exempt from social security contributions. Following this initial period, you will be required to declare your earnings every quarter by submitting an online quarterly report (known as “declaração trimestral”).
In Portugal, self-employed individuals are subject to a social security rate of 21.4%. However, for individual entrepreneurs, this rate increases to 25.2%.
VAT for Freelancers in Portugal
Value Added Tax (VAT) for freelancers in Portugal, known as Imposto sobre o Valor Acrescentado (IVA), is an important aspect of financial management when operating as a self-employed professional
Freelancers in Portugal are generally required to register for VAT if their annual turnover (total sales) exceeds €12,500 of annual turnover. Those who earn less than €12,500 a year are exempt from charging VAT.
Periodic VAT Declaration (Declaração periódica de IVA)
Once your earnings exceed the €12,500 threshold, you are required to notify the tax authority and you will be required to make quarterly income tax payments (prestações de conta) based on estimated earnings. These payments are made in March, June, September, and December. The amount is calculated based on your projected annual income and the applicable tax rate.
VAT Rates in Portugal
- Standard Rate (Taxa Normal): The standard VAT rate is 23%. This rate applies to most goods and services.
- Reduced Rate (Taxa Reduzida): A reduced VAT rate of 13% is applicable to specific items like certain food products, books, and more.
- Intermediate Rate (Taxa Intermediária): An intermediate rate of 6% applies to certain services such as restaurant meals and renovation services.
- Zero Rate (Taxa Zero): Some goods and services, like exports and international transportation, are taxed at a 0% VAT rate.
- Exempt (Isento): Certain services, like healthcare and education, are VAT exempt.
How to Issue an Invoice as a Freelancer in Portugal?
1. Log in to the Tax Portal (Portal das Finanças): Use your NIF and password to access your account.
2. Go to the “Faturas e Recibos Verdes” section: This is where freelancers issue invoices, receipts, and receipt-invoices.
3. Choose the document type: Most freelancers issue a “recibo verde”, which works as both an invoice and a receipt. You’ll fill in the client’s details, your service description, and the amount charged.
4. Apply VAT or use the exemption: If you’re VAT-exempt under Article 53, include the exemption note. Otherwise, select the correct VAT rate.
5. Submit and download your invoice: Once submitted, the invoice is automatically registered with the tax authorities, and you can send the PDF to your client.
Why Work With Us
Local Expertise
We know Portugal intimately. Moreover, due to our extensive local knowledge, we firmly believe that concentrating our services in a single country destination is the best way to provide you with the most thorough and useful information available.
Holistic Approach
We offer one single channel of communication for the entire process. Furthermore, we provide you with a comprehensive service that covers all aspects of your move, ranging from identifying the ideal residency visa to finding your new home or assisting you in settling down.
Transparent Service
We recommend what’s best for you based on an extensive process experience that saves time and money for clients. Additionally, our pricing is clear and competitive, and we refrain from offering services solely for the sake of increasing our revenue.
Simple Process
Technology plays a very important role in our company. We minimize our clients’ involvement in paperwork. We are customers ourselves and we know how to serve you.
Frequently Asked Questions
Who needs to register as a freelancer in Portugal?
Anyone who intends to work as a self-employed individual, providing goods or services in Portugal, must register as a freelancer.
Those what is the first step in registering as a freelancer?
The first step is obtaining a NIF (Fiscal Identification Number) from the tax authorities. It’s a crucial requirement for tax purposes.
What information do I need to provide during registration?
To complete the registration process, you’ll need to furnish details such as the starting date of your business activity, along with a description of the services you offer. Additionally, you’ll be required to provide your estimated annual income and your bank account details, including your IBAN.
What is the difference between the simplified and organized accounting frameworks?
The simplified option is commonly chosen due to its simplicity; nonetheless, it doesn’t require hiring an accountant, but it doesn’t allow for business expense deductions. Conversely, the organized option becomes mandatory if your annual earnings exceed €200,000, thus necessitating the engagement of an accountant for proper financial management.
Are there any exemptions for social security contributions?
Freelancers are generally exempt from paying social security for the first 12 months after registration.
What are the VAT obligations for freelancers in Portugal?
VAT obligations depend on your annual income. If your income exceeds €12,500, you may be required to charge and report VAT. The specific VAT rates vary based on the nature of your services or products.
Is it necessary to issue invoices and receipts in Portugal?
Yes, it’s essential to issue invoices for your services or products. After receiving payment, you must also provide receipts to clients. A combined “fatura-recibo” can be used when clients pay upfront.
Can I get assistance or guidance for the registration process?
Yes, you can seek assistance from local tax authorities or consider consulting with a tax professional or relocation agencies who is knowledgeable about Portuguese tax regulations.
What are the consequences of not registering as a freelancer in Portugal?
Operating without proper registration can lead to legal and tax issues, including fines and penalties. It’s essential to comply with registration and reporting requirements.
Excellent
4.9 | 47 Reviews
