Self-Employed in Portugal: Recibos Verdes, Taxes and Social Security Explained (2026)

Last updated: 28 September 2026 · By Haider Shah, accounting technician in Portugal

“Recibos verdes” (green receipts) is the everyday name for working as self-employed in Portugal. The green paper receipts disappeared long ago. Today you issue electronic invoices (faturas-recibo) on Portal das Finanças, but the name stuck.

This guide covers the three things you deal with as a self-employed worker: IRS (income tax), VAT and Social Security, with real 2026 numbers.

1. Issuing a fatura-recibo

Every time you are paid, you must issue a document. On Portal das Finanças, search for “Emitir recibo verde” (or go to Faturas e Recibos Verdes, then Emitir), choose Fatura-Recibo, and fill in:

• the client’s NIF and name
• the date and a description of the service
• the amount
• the VAT regime (for example, exempt under artigo 53.º)
• IRS withholding, if it applies (see below)

2. IRS withholding (retenção na fonte)

When your client is a company or has organised accounting, they may have to withhold part of your payment and pay it to Finanças on your behalf. It works as an advance on your annual IRS.

Exemption from withholding (dispensa): if your Category B income is expected to stay below €15,000 a year, you can choose not to have tax withheld. You indicate this on each invoice. Clients who are private individuals without organised accounting never withhold.

3. How IRS is calculated in the simplified regime

In the simplified regime, only part of your income counts as taxable income. The rest is treated as expenses automatically:

That taxable amount is added to any salary you have and taxed at the normal IRS rates in your annual return.

4. VAT

If your annual turnover in Portugal is up to €15,000, you can be exempt from VAT under artigo 53.º. Above that, you charge VAT (23% standard rate on the mainland, lower for some goods and services) and file periodic VAT returns. The rules, including the €18,750 tolerance, are explained in our opening-activity guide.

5. Social Security

The first 12 months are free

In your first 12 months of activity you are normally exempt from contributions and do not submit quarterly declarations.

After that: 21.4% on 70% of your income

• Rate: 21.4%
• Base for services: 70% of what you invoiced (for sales of goods, 20%)
• The quarterly total is converted to a monthly amount, and you pay that every month
• Minimum contribution: €20 per month

Worked example

Ana is a freelance designer. She invoices €1,500 a month, which is €4,500 a quarter, and is past her first 12 months.

Quarterly declarations and payment

You declare your income for the previous quarter in Segurança Social Direta:

The monthly contribution is paid between the 10th and 20th of the following month, by Multibanco, homebanking or direct debit.

Also working with a job contract?

If you also work for an employer and your self-employed relevant income is below 4 × IAS (€2,148.52 a month in 2026), you are generally exempt from self-employed contributions. The exemption is not always automatic, so check your situation in Segurança Social Direta.

Your yearly calendar

Frequently asked questions

Do I pay Social Security in my first year?

Normally no. The first 12 months of activity are exempt.

What if I invoice nothing in a quarter?

You still submit the quarterly declaration, with zero. Your contribution then drops to the minimum or to zero, depending on your situation.

Do I need an accountant?

In the simplified regime it is not mandatory, but many people use one to avoid mistakes with withholding, VAT and Social Security declarations.

Official sources

• e-konomista – Segurança Social: datas para trabalhadores independentes em 2026
• PwC – Guia Fiscal 2026: Segurança Social
• simuladorneto.pt – Retenção na fonte recibos verdes 2026
• IAS 2026 fixed at €537.13 (APCMC)
• calculariva.pt – Artigo 53.º (2026)

This guide is general information, checked against official sources on 28 September 2026. Rules and portals in Portugal change often, so confirm the current rules with the official source before you act. It is not legal advice.