Portugal Freelancer Tax

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A working estimate of your IRS and Social Security as a recibos-verdes freelancer in Portugal. Covers the NHR / IFICI flat rate, new-activity discounts in years 1 and 2, dependent deductions, and the 15% e-Fatura rule.

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How this works

1. Coefficient on the gross. Under the simplified regime, only a slice of your gross income is taxable. For professional services that base coefficient is 0.75. For goods and hospitality it's 0.15. The rest is treated as fictitious expenses.

2. New-activity reduction. Article 31(10) of the IRS Code halves the coefficient in your first year of self-employment and reduces it by 25% in your second. So year 1 services land on a coefficient of 0.375, year 2 on 0.5625.

3. The 15% e-Fatura rule. For services you must justify 15% of gross income - but the specific deduction (8.54 × IAS, €4,587 in 2026) and the part of your Social Security up to 10% of gross already count toward it automatically. Only the gap that remains after those plus your documented e-Fatura expenses is added back to your taxable base. The reduction in (2) doesn't waive this rule.

4. IRS, progressive or flat 20%. Standard taxable income passes through 9 brackets from 13.25% to 48% (plus a solidarity surcharge above €80k). Under NHR or IFICI, qualifying Cat B income is taxed at a flat 20% instead, for 10 years.

5. Dependent deductions. These come off the IRS owed: €600 per dependent age 3+, €726 for the first dependent under 3, and €900 for each additional dependent under 3.

6. Social Security. Independent workers pay 21.4% on the relevant income - 70% of services income, 20% for goods or hospitality. The monthly base is capped at 12 × IAS (€6,446/mo in 2026) with a €20/mo floor. Year 1 of activity is fully exempt for the first 12 months, automatically. Year 2 onward is the full rate.

7. The Social Security deduction. The part of your mandatory Social Security above 10% of gross income is deducted directly from your post-coefficient income (IRS Code art. 31(2)), in addition to the e-Fatura credit in (3). This is why a real services freelancer's taxable income lands below the raw 75% coefficient.

Sources

• PwC Portugal: PIT Guide 2026
• PwC Portugal: Social Security 2026
• gov.pt: Social Security for self-employed
• gov.pt: First-year exemption
• PwC Tax Summaries: tax credits and incentives
• Código do IRS, art. 31.º & 25.º (Portal das Finanças)
• IAS 2026 €537,13 - Portaria n.º 480-A/2025/1 (DR)

Common questions

Does the year-1 IRS reduction stack with the SS exemption?
Yes. They're independent. In year 1 the IRS coefficient is halved, AND Social Security is fully exempt for the first 12 months. That's why the first year of self-employment in Portugal looks unusually light on tax compared to year 3 onward.
Do I qualify for NHR or IFICI?
Legacy NHR (granted before end of 2023) applied broadly to "high value-added activities" for 10 years from registration. IFICI (NHR 2.0, 2024+) is much narrower. Mostly R&D, science, innovation, qualifying tech roles, university teaching. Only tick the toggle if you have an active grant. Both regimes require a formal application.
What if I don't document the 15% in expenses?
Less of a problem than it sounds. The specific deduction (≈€4,587 in 2026) and your Social Security contributions already count toward the 15% automatically. For most freelancers that alone covers it, so €0 is added back even with no documented expenses. A gap only opens at higher incomes, where 15% of gross exceeds that automatic credit - then only the uncovered part is added to your taxable income. Tracking e-Fatura expenses with your NIF still helps high earners close that gap.
When are Social Security contributions actually paid?
Quarterly declaration is due by the last day of January, April, July, and October. The amount owed gets split into three monthly payments, each due between the 10th and 20th of the following months.
Why is my IRS so low when I add NHR?
NHR / IFICI replaces the 9 progressive brackets (13.25% to 48%) with a flat 20% on qualifying Cat B income. For higher earners (€40k+) this is a big cut. The simplified-regime coefficient still applies first, so the 20% is computed on the same taxable base.
Why won't this match my accountant to the euro?
Because a real return sees things no calculator can. The big one is e-Fatura: a slice of your everyday spending comes back as IRS credit. Restaurant meals, the mechanic, the gym, the vet. Your dinner receipts quietly lower your income tax. Add health and education deductions, plus registration dates that straddle two years, and the clean formula breaks. This tool models the common path. Your accountant models you.
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1Income
Total invoiced this year, before any tax or contribution.
Services = consultants, designers, doctors, lawyers (75% coefficient). Goods = trade or hospitality (15% coefficient).
Services have a 15% e-Fatura rule: if documented expenses fall short, the gap is added back to your taxable income.
2Status
New activity gets relief: Year 1 halves the IRS coefficient (services: 0.75 → 0.375) and Social Security is fully exempt for the first 12 months. Year 2 reduces the coefficient by 25% (0.75 → 0.5625), Social Security at full rate.
For NHR (legacy): your registration year. For IFICI (NHR 2.0): the year you became Portuguese tax resident.
Your 10-year period has ended. The calculator is applying standard progressive IRS instead.
3Family
Children under 18, or under 25 if in education and earning under €12,180.
Higher deduction: €726 first, €900 each subsequent.
Estimated tax

Portugal's tax code has a line for everything, and an exception for every line. Treat the number below as a good estimate, not a verdict. Your accountant will land a few percent off it, and on that day they're the one who's right.

Show per
Gross income -
Coefficient applied -
Auto-justified (deduction + SS) -
Unjustified expenses added -
SS deduction (art. 31.º/2) -
Taxable income -
IRS (income tax) -
Dependent deduction -
Social Security -
Total tax + SS -
Net income -
Effective rate -
Quarterly Social Security: - per quarter. Declared end of Jan / Apr / Jul / Oct. Paid monthly between the 10th and 20th.
Estimate only. Not tax advice. This calculator handles the most common cases for mainland Portugal. It skips: regional surcharges (Madeira and Açores), couple-filing splits with a non-freelancer spouse, deductions for health, education, or housing, the solidarity surcharge above €80,000 taxable income, mid-year activity registration (where the 12-month SS exemption straddles two calendar years), and IRS Jovem (the youth IRS reduction). Verify with a Portuguese accountant before relying on these numbers.
Sources PwC Portugal: PIT Guide 2026·PwC Portugal: Social Security 2026·gov.pt: Social Security for self-employed·gov.pt: First-year exemption·PwC Tax Summaries: tax credits and incentives·Código do IRS, art. 31.º & 25.º (Portal das Finanças)·IAS 2026 €537,13 - Portaria n.º 480-A/2025/1 (DR)
Last updated: May 2026 · Based on 2026 State Budget rates