Freelancer Tax in Portugal
Calculate your net income as a freelancer or self-employed worker in Portugal for 2026.
Freelancer tax system in Portugal
Self-employed workers in Portugal (trabalhadores independentes) pay IRS (income tax) at progressive rates from 14.5% to 48% on their taxable income. Portugal offers a simplified regime (regime simplificado) where only 75% of service income is considered taxable, effectively reducing the tax base. Social security contributions are 21.4% of relevant income, calculated on a quarterly basis from reported earnings.
- •IRS: progressive 14.5%–48% on taxable income, with a €4,104 personal deduction
- •Simplified regime: only 75% of service income is taxable (25% automatic expense deduction)
- •Social security: 21.4% of relevant income, paid quarterly based on declared earnings
- •First-year exemption: new freelancers are exempt from social security in their first 12 months
- •IVA (VAT): 23% standard rate, exemption for revenue under €13,500/year
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