0.75 or 0.35? 5 rules to know which coefficient applies to your work
Under the simplified regime, a self-employed worker’s IRS depends on one number: the coefficient. For a professional activity, 75% of what you invoice is taxed; for other services, only 35%. The difference is large and is decided, to a great extent, by the activity code you choose when you open your activity. These are the five rules to get it right.
Simplified regime or organised accounting: 5 rules to choose the right regime
If you issue recibos verdes, you pay IRS under one of two regimes. Under the simplified regime, the Tax Authority taxes a fixed percentage of what you invoice; under organised accounting, you pay on your real profit, after all your expenses. Neither is better for everyone: it depends on how much you spend to do your work. These are the five rules to work out which one suits you.
IRS payments on account: 5 rules so you are not caught by surprise
If you work on recibos verdes, the Tax Authority may ask you every year for three advance payments of IRS: in July, September and December. The amount is calculated from your IRS of two years earlier, so it does not always match what you are earning now. These are the five rules to understand how much you pay, when you pay and what to do if your income has changed.
Over €15,000: 5 rules to start charging VAT without surprises
When what you invoice to clients in Portugal goes over €15,000 in a year, you are no longer VAT-exempt. When you start charging depends on how far you went over the limit. From then on, there is a return to file, prices to agree with clients and VAT to pay to the State every three months. These are the five rules to make the change without surprises.
Withholding tax on recibos verdes: 5 rules to know how much is withheld and when you can avoid it
When a client with organised accounting pays you, it keeps part of the amount and pays it to the Tax Authority on your behalf. It is not an extra tax – it is IRS paid in advance – but it affects the money you receive every month. These are the five rules to know when there is withholding, how much it is, how to use the waiver and how that amount counts in your IRS.
Foreign clients: 5 rules to invoice without charging too much or too little VAT
When your client is a company outside Portugal, the invoice changes. For most services you do not charge Portuguese VAT, there is no withholding tax and the amount does not even count towards the €15,000 limit. But it all depends on who the client is, where they are and the type of service. These are the five rules to get it right.
How to issue a fatura-recibo on the Portal das Finanças: 5 rules to fill in every field without mistakes
Issuing a recibo verde takes two minutes, but every field has consequences. The NIF decides who sees the expense, the VAT regime decides whether you charge tax and the withholding option decides how much you receive. These are the five rules to get every document right – and to fix the ones that go wrong.
Moving to Portugal as a freelancer: 5 rules to get everything done in the right order
NIF, visa, bank account, NISS, opening activity, tax residence: if you are moving to Portugal to work for yourself, there is a lot to sort out, and many steps depend on each other. These are the five rules to avoid getting stuck waiting for a document.
Ato isolado or opening activity? 5 rules to decide before you invoice
If you are asked to do a one-off job and do not have an open activity, the ato isolado (one-off act) lets you invoice it without registering as self-employed. But it only works for an occasional transaction, and the VAT, IRS and Social Security rules are not what many people imagine.
First and second year on recibos verdes: 5 rules to make the most of the benefits (and prepare for when they end)
When you start out as self-employed, you pay less at first: no Social Security for a year, reduced IRS for two tax years and, in many cases, no VAT to charge. But each benefit has conditions and an end date, and the third year is when many people get caught out.