Simplified Regime vs Organized Accounting 2026

For Portuguese self-employed (category B) income, organized accounting pays off when your real costs — documented expenses, Social Security and a certified accountant — exceed the deduction the simplified regime's coefficient presumes (25% of income under the 0.75 coefficient). Use the simulator to compare 2026 income tax under both regimes and find your expense break-even.

How taxable income is computed under each regime

Under the simplified regime, taxable income comes from fixed coefficients (art. 31(1) of the IRS Code): 0.75 for professions in the art. 151 list, 0.35 for other services and 0.15 for sales of goods, restaurants and hotels. Under the 0.75 and 0.35 coefficients, the 15% rule also applies: if you cannot justify expenses equal to 15% of gross income — counting an automatic minimum of €4,587.09 (8.54 × the 2026 IAS of €537.13) or your Social Security contributions, if higher — the shortfall is added to taxable income.

Under organized accounting, tax is charged on real profit, computed under corporate tax (CIRC) rules with IRS Code adaptations (art. 32): income minus documented expenses, Social Security contributions and the accountant's own fee. If costs exceed income, no tax is due and the tax loss can be carried forward.

The 2026 tax brackets used in the simulation

The simulator applies the progressive brackets of art. 68 of the IRS Code, as amended by Law 73-A/2025 (2026 State Budget): 12.5% up to €8,342; 15.7% up to €12,587; 21.2% up to €17,838; 24.1% up to €23,089; 31.1% up to €29,397; 34.9% up to €43,090; 43.1% up to €46,566; 44.6% up to €86,634; and 48% above. It assumes a single taxpayer with no other income and no tax credits.

When switching to organized accounting is worth it

The decisive calculation is simple: organized accounting only wins if the income tax saved versus the simplified regime exceeds the certified accountant's annual fee (an indicative €2,100/year in the simulator). Since expenses and Social Security are identical in both scenarios, the simulator compares the tax bill of each regime, adds the accountant to the organized scenario and computes the break-even: the level of documented annual expenses from which organized accounting starts to win. The option is exercised when registering the activity or in March, via an amendment declaration on the Portal das Finanças — confirm your deadline with a certified accountant.

Run the full numbers with the green receipts simulator, compare with opening a company or talk to HVR about organized accounting.

Frequently asked questions

When does organized accounting pay off?

When real costs — expenses, Social Security and the accountant — exceed the deduction the coefficient presumes (25% under 0.75; 65% under 0.35; 85% under 0.15) and the tax saved outweighs the accounting fee.

Can I switch regimes, and when?

Yes: when registering the activity or in March, via an amendment declaration on the Portal das Finanças, effective that year. Confirm the deadline with a certified accountant.

What is the 15% rule?

Under the 0.75 and 0.35 coefficients, any part of 15% of gross income not justified with expenses (automatic minimum of €4,587.09, or Social Security if higher) is added to taxable income — art. 31(13)-(14) of the IRS Code.

What obligations does organized accounting carry?

A mandatory certified accountant, full bookkeeping under CIRC rules (art. 32 of the IRS Code) and complete records — in exchange for deducting real costs and carrying losses forward.

What are the advantages of the simplified regime?

Simplicity and low cost: no mandatory accountant, costs presumed by the coefficients and, as a rule, available for income up to €200,000/year (art. 28 of the IRS Code).