Self-Employee

Dedicated Assistance for Self-Employed Professionals

Navigate the complexities of self-employment in Portugal with our tailored assistance services. From navigating tax regulations to accessing resources, we’re here to support your entrepreneurial journey.

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It’s time to thrive!

We understand the weight of tax and accounting burdens. Let us be your trusted guide in navigating these complexities, freeing you to focus on what matters most: growing your business. Together, let’s pave the way to financial ease and success!

Your trusted guide!
Liberate yourself from tax stress.
Fulfill your entrepreneurial dreams.
Achieve peace of mind with accounting assistance.
Tax and Social Security Regime

Decoding Portugal's Self-Employed Tax & Social Security Landscape

Embarking on a self-employed journey comes with its own set of responsibilities, akin to those of traditional employees.

A Brief Overview
Personal Income Tax (IRS) for Self-Employed Individuals

Self-employed workers can choose between two tax regimes:

Tax rates range from 14.5% to 48%. Under the Non-Habitual Resident (NHR) regime, high-value activities are taxed at a flat 20%. New self-employed workers benefit from reduced tax coefficients (50% in year 1, 25% in year 2) if self-employment is their main income.

VAT (Value Added Tax) for Self-Employed Workers

Self-employed individuals in Portugal who provide services or sell products regularly are generally subject to VAT. However, if your annual turnover is below €15,000 you may be exempt. The standard VAT rate is 23%.
VAT location rules depend on the client type:

Social Security for Self-Employed Workers

Self-employed individuals in Portugal must contribute to Social Security after their first 12 months of activity. No contributions are required during the first year.


Afterward, contributions are 21.4% of the monthly contribution base, calculated from 70% of the income earned in the previous three months. These are reassessed quarterly.

A Roadmap for Self-Employed Professionals in Portugal

Empower your self-employment journey in Portugal with our concise guide to fulfilling reporting obligations. Navigate tax and social security requirements confidently, ensuring compliance and peace of mind.

Demystifying Reporting Obligations
One-time Registration
1

Register as a Self-Employee with Tax Authorities

Kickstart your self-employment journey by registering with the tax authorities in Portugal. This crucial step ensures compliance with tax regulations and establishes your status as a self-employed professional.

2

Obtain Your Social Security Number

Secure your access to social security benefits by obtaining your unique social security number. This essential identifier ensures you're properly accounted for in Portugal's social security system, safeguarding your future financial well-being.

3

Issue Monthly Invoices

Keep your finances in order by issuing monthly invoices for your services rendered. Timely and accurate invoicing not only facilitates smooth transactions with clients but also ensures compliance with tax reporting requirements.

4

Monthly Payment of Social Security Contributions

Fulfill your social security obligations by making monthly contributions. These payments are vital for maintaining your social security coverage, providing protection against unforeseen circumstances such as illness, unemployment, or retirement.

5

Submit Quarterly VAT Returns

Stay on top of your value-added tax (VAT) obligations by submitting quarterly VAT returns. This process involves reporting your taxable sales and purchases, ensuring compliance with Portugal's VAT regulations.

6

Submit Quarterly Recapitulative VAT Return

Comply with VAT regulations by submitting your quarterly recapitulative VAT return. This report provides a summary of your intra-community transactions, aiding in the accurate assessment and collection of VAT.

7

Submit Quarterly Social Security Return

Meet your social security obligations by submitting quarterly returns. This essential process ensures accurate reporting of your income and contributions, maintaining your eligibility for social security benefits.

8

Maintain Annual Register of Business Expenses

Track your business expenses throughout the year and maintain an annual register for tax purposes. Proper documentation of expenses allows you to claim deductions, reducing your taxable income and optimizing your tax situation.

9

Submit Annual Personal Income Tax Return

Fulfill your annual tax obligations by submitting your personal income tax return. This comprehensive report accounts for your income, expenses, and deductions, ensuring accurate assessment and compliance with tax laws.

Resources

Transform Your Self-Employment Journey with Our E-Books!

Hey there, self-employed superstar! 🌟
Are you ready to tackle the world of self-employment in Portugal?
We’ve got just the resources you need to make it easier!

Navigate Portugal's tax and social security nuances effortlessly with our concise guide for self-employed professionals.
Grab your Portugal's Tax & Social Security Demystified E-book for just €7!

For only €7, you’ll get a straightforward guide that covers:


 

📊 Essential Regime Insights: Understand personal income tax, social security, and VAT without the confusion. 


 

💡 Real-Life Examples: See practical scenarios and tax estimates that apply to you. 


 

🗓️ Handy Reporting Summary: Stay on top of your deadlines and obligations with our easy-to-follow overview. 


 

This e-book is perfect if you want to build a solid foundation without getting overwhelmed!

Empower yourself with a comprehensive DIY solution. Navigate reporting requirements independently with our easy-to-follow guides, templates, and resources, ensuring compliance and control over your business finances.
Level up with the Premium version including up-to-date step-by-step instructions!

If you’re serious about your self-employment journey, our €100 premium e-book is your best bet. It includes everything from the extended version AND:

 

Step-by-Step Compliance Instructions: Get detailed guidance on meeting all reporting obligations (excluding self-employment registration and annual tax returns).

 

🔄 Always Updated Instructions: You’ll have access to a link where we’ll keep all instructions current. No need to buy them again when changes occur!

 

This option is ideal if you want to be fully prepared and confident in managing your self-employment journey.

Have a lot of questions?

Book Your Consultation and Get Your Ebook for Free!

Don’t miss out on the myriad opportunities Portugal has to offer. Schedule your tax and/or immigration consulting meeting today. Get expert guidance tailored to your needs for a seamless transition and compliance with Portuguese regulations.

As a bonus, receive your free “Portugal’s Tax & Social Security Demystified” E-book to help you navigate the process with ease!

Navigate Your Journey to Portugal
What our clients say

“One of the best and most competent Tax Consulting agencies in Portugal.️”

Absolutely recommended!
We have worked with Step Inside Portugal for the past 2 years and they helped us getting our residency & tax papers in order, as well as doing our accounting & tax return as freelancers. They always went above and beyond, replying to all the questions we had, and making sure that everything was done perfectly.
Niko
I am extremely satisfied with the professional experience I had working with Step Inside Portugal.
Their expertise and guidance have been invaluable in ensuring that my taxation process in Portugal is handled correctly and efficiently. I highly recommend their services to anyone in need of expert advice and assistance with USA and Portugal taxation.
Customer
Provides all you need!
They are great! Very knowledgeable and always available for any questions.
Customer
Great service.
Great service, friendliness, practicality, clear explanations and speed of processes.
Pedro Corte-Real

ONE-time Registration

Officially Register as a Self-Employee with Tax Authorities

Kickstart your self-employment journey by officially registering as a self-employee with tax authorities. Simultaneously, obtain your essential social security number, laying the groundwork for your future endeavors with compliance and confidence.

Tailored Solutions Await!
Self-Employee Register + NISS

Secure Your Entrepreneurial Foundation: Register as a Self-Employee and Obtain Your NISS (Social Security Number).

 

Lay the groundwork for your self-employment journey with these essential steps, ensuring compliance and access to social security benefits.

200

(+ VAT)

Self-Employee Register

Launch Your Self-Employment: Register as a Self-Employee.

 

Begin your entrepreneurial journey by registering officially as a self-employee.

100

(+ VAT)

How to Get Started

Enjoy the free time!​

Embark on a hassle-free journey with Step Inside Portugal.
Here’s how to kickstart the process:

Your peace of mind is our priority.

P.S. We’ll always send the documents for your review and approval before submitting anything. 😉

Video Tutorial on how to get started

ongoing obligations

Meet Your Reporting Monthly Obligations

Stay Compliant, Stay Successful: Both services help self-employed professionals navigate reporting obligations seamlessly, ensuring adherence to regulations for business success.

Never miss a deadline!

Want us to handle it for you throughout the year?

Let us handle the reporting obligations for self-employed individuals.

Our experts ensure accurate and timely reporting, compliance with regulations, and optimized tax outcomes, so you can focus on growing your business.

Monthly Accounting Assistance

Get peace of mind with our Monthly Accounting Assistance service tailored for self-employed individuals. Stay organized and compliant as we handle your accounting needs, leaving you free to focus on growing your business.

Want to do it yourself?

Prefer to handle your self-employment reporting yourself? Our comprehensive instructions kit provides step-by-step guidance, essential tips, and all the resources you need to confidently manage your tax reporting obligations.

Empower yourself with a comprehensive DIY solution. Navigate reporting requirements independently with our easy-to-follow guides, templates, and resources, ensuring compliance and control over your business finances.

Never Miss a Deadline!

Claim Your Free “Reporting Obligations Calendar” and “Email Alerts” Today!

Simply provide us with your email, and you will receive a link to connect the alerts to your online calendar.


Additionally, you’ll receive emails a few days before each deadline, reminding you to comply with the obligation.

 

Stay organized and on top of your reporting requirements effortlessly!

Add to your calendar

Unlocking Self-Employment Success Together

Empowering Self-Employment: Your Path to Success Starts Here

Discover the difference with our tailored support for self-employed individuals. Benefit from expert guidance, streamlined processes, and flexible solutions designed to address your unique needs. Take control of your business journey with confidence and peace of mind.

Tailored Solutions

Customized assistance designed specifically for self-employed individuals, addressing their unique needs.

Expert Guidance

Access to experienced professionals well-versed in self-employment regulations and challenges.

Flexible Support

Assistance available on-demand, providing flexibility to adapt to changing business needs.

Professional, fast and helpful.

Step Inside Portugal helped me quickly and professionally with all my needs and accounting questions. First as an employee and then as self-employed individual in Portugal. Highly recommended, professional, fast and really helpful. 10/10 ⭐️

Customer

FAQs

Your Questions Answered

Get answers to common queries about self-employment in Portugal, covering registration, taxes, reporting obligations, and more.

Being self-employed means you work for yourself and are responsible for managing your business activities, including finding clients, setting prices, and handling administrative tasks.

Yes, if you’re engaging in business activities as an independent worker, you’re required to register as self-employed with the tax authorities (Autoridade Tributária e Aduaneira – AT) in Portugal. This registration is necessary for tax purposes and social security coverage.

Self-employed individuals in Portugal are typically subject to income tax (Imposto sobre o Rendimento das Pessoas Singulares – IRS) on their business profits, as well as social security contributions (Segurança Social) based on their income. Additionally, VAT (Imposto sobre o Valor Acrescentado – IVA) may apply to certain goods and services provided.

To register as self-employed in Portugal, you’ll need to obtain a taxpayer identification number (Número de Identificação Fiscal – NIF) and complete the appropriate registration forms with the tax authorities. You may also need to register with the social security system (Segurança Social) to ensure coverage for benefits such as healthcare and pensions.

Self-employed individuals in Portugal are required to keep accurate records of their business income and expenses and report this information to the tax authorities on a regular basis. This includes filing quarterly VAT returns (if applicable), quarterly social security returns, and an annual personal income tax return.

It’s essential to stay informed about Portuguese tax and social security rules and regulations and seek assistance from qualified professionals if needed. Consider working with an accountant or tax advisor who specializes in Portuguese tax law to ensure compliance with reporting obligations and optimize your tax situation.

In Portugal, self-employed individuals must issue invoices for the goods or services they provide. Invoices must include specific details such as the taxpayer identification number (NIF) of both the issuer and recipient, invoice number, date, description of goods or services, and total amount including taxes. Familiarizing yourself with invoicing requirements is crucial to ensure compliance with Portuguese tax regulations.

Yes, Portugal offers various tax incentives and deductions for self-employed individuals. These may include deductions for business expenses such as office supplies, rent, utilities, and professional services. Additionally, certain industries or activities may qualify for specific tax incentives or exemptions. It’s essential to stay updated on available deductions and incentives to optimize your tax situation.

Self-employed individuals in Portugal may be required to charge VAT (Imposto sobre o Valor Acrescentado – IVA) on their goods or services, depending on their annual revenue and the nature of their business activities. Understanding VAT obligations, including registration thresholds, invoicing requirements, and VAT rates, is essential to ensure compliance with Portuguese tax regulations.

Self-employed individuals in Portugal can access various resources to assist them in understanding and complying with tax and social security regulations. These resources may include online guides and publications from the tax authorities (Autoridade Tributária e Aduaneira – AT) and social security system (Segurança Social), as well as professional associations and organizations offering guidance and support tailored to self-employed individuals’ needs. Additionally, consulting with a tax advisor or accountant familiar with Portuguese regulations can provide personalized assistance and advice.

You are obliged to keep detailed records of your income and expenses for tax purposes during 4 years.

You need to file an annual tax return between 1 April and 30 June of the following year.

Yes, you can usually deduct legitimate business expenses from your taxable income, which can help reduce your overall tax liability. You can download our resource with further information on this regard.

Failing to pay taxes on time can result in penalties and interest charges.

Budgeting, saving for taxes, and setting aside funds for emergencies are essential financial management strategies.

Contact us
If you have any immediate questions or concerns, feel free to contact us by email or whatsapp.

Have a lot of questions?

Book Your Consultation Today!

Don’t miss out on the myriad opportunities Portugal has to offer. Schedule your tax and/or immigration consulting meeting today. Get expert guidance tailored to your needs for a seamless transition and compliance with Portuguese regulations.

Navigate Your Journey to Portugal
Embark on Your Self-Employment Journey

Ready to Transform Your Self-Employment Dreams into Success?