Green Receipts Simulator 2026
A self-employed worker in Portugal 2026 (recibos verdes) pays: Social Security 21.4% (Article 168(1) of the Contributory Code) on the monthly contribution base, which is one third of the relevant income of the quarter (Article 163(1)) — relevant income being 70% of service fees (Article 162), IRS withholding 23% (liberal professions) or 11.5% (other services), and is VAT-exempt up to €15,000/year. Example: €30,000 annual revenue ≈ €4,494 Social Security + ~€4,500 IRS. IRS Jovem exempts 100% in year 1, then 75%, 50% and 25%, up to year 10, for people aged up to 35 (Article 12-B of the IRS Code).
Calculate your IRS and Social Security contributions as a self-employed worker (recibos verdes) in Portugal for 2026. Enter your annual income to see total tax burden and net earnings.
Tax Rules for Self-Employed Workers in Portugal (2026)
- IRS withholding: 23% for liberal professions, 11.5% for other services
- Social Security: relevant income = 70% of invoiced services (Article 162 of the Contributory Code); the monthly base is one third of the relevant income of the quarter (Article 163(1)), and the 21.4% rate applies to that base (Article 168(1))
- VAT exemption: exempt up to €15,000/year (Art. 53 VAT Code)
- Simplified regime: available up to €200,000/year turnover
Self-employed workers in Portugal pay Social Security on a monthly basis, calculated on the previous quarter's income. No contributions are due in the first 12 months of activity: the first registration only takes effect on the first day of the 12th month after the start (Article 145 of the Contributory Code).
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Frequently asked questions
How much Social Security do I pay as a self-employed worker?
21.4% on relevant income, which is 70% of service income (articles 162 and 168 of the Contributory Code). The monthly base is one third of the quarter's relevant income (article 163). No contributions are due in the first 12 months of activity, because registration only takes effect in the 12th month (article 145).
Do I have to charge VAT?
No, if you invoice up to €15,000 a year and meet the other conditions of article 53 of the VAT Code. Above that, the standard rate of 23% generally applies in mainland Portugal (article 18).
What withholding tax applies to green receipts?
23% for the professions listed in article 151 of the Personal Income Tax Code and 11.5% for other services (article 101(1)). Tax is only withheld when the client keeps organised accounts.
How is income taxed under the simplified regime?
Personal income tax applies to a fixed share of income: 75% for the professions in the article 151 table, 35% for other services and 15% for sales (article 31(1) of the Personal Income Tax Code). The regime applies up to €200,000 of annual income (article 28).
Do I pay Social Security in a quarter with no income?
You still file the quarterly return. With no income in the quarter, a minimum contribution of €20 a month is due unless you are exempt (article 163 of the Contributory Code).