Portugal freelancer tax calculator
Work out what you keep as a freelancer (trabalhador independente, paid with recibos verdes) in Portugal in 2026, under the simplified regime, and how it compares with being an employee on the same gross.
€499 a year more than an employee with the same gross salary, before your business costs.
Step by step
| Income invoiced in the year | €40,000 |
|---|---|
| Taxable share: coefficient 75% | €30,000 |
| Social security above 10% of income | −€1,992 |
| 15% expense test: shortfall added back | +€1,413 |
| Taxable income | €29,421 |
| IRS on the 2026 scale | €6,058 |
| Personal deduction | −€250 |
| IRS to pay | €5,808 |
| Social security (21.4% of 70% of income) | −€5,992 |
| Take-home pay | €28,200 |
Freelancer vs employee, 2026
| Income a year | Freelancer, take-home | Employee, take-home | Difference |
|---|---|---|---|
| €20,000 | €15,244 | €15,742 | −€497 |
| €30,000 | €22,170 | €22,139 | +€31 |
| €40,000 | €28,200 | €27,701 | +€499 |
| €50,000 | €33,879 | €33,314 | +€565 |
| €60,000 | €39,605 | €38,275 | +€1,330 |
| €80,000 | €49,940 | €48,136 | +€1,804 |
| €100,000 | €60,253 | €57,692 | +€2,560 |
Single, professional services in the art. 151 list, third year or later, no business expenses, mainland Portugal. Employees pay 11% social security; the employer adds more on top, which a freelancer does not get.
How freelancers are taxed
- Simplified regime: only part of your income is taxed. For professional services in the article 151 list it is 75%, for other services 35%. In your first two years the share is cut by 50% and then 25%, if you have no salary or pension in those years.
- The 15% expense test: you must show expenses of at least 15% of your income, or the shortfall is added to your taxable income. The fixed €4,587.09 deduction (8.54 × IAS) counts towards it, so with no other expenses the test only bites above about €30,581 a year.
- Social security: 21.4% of 70% of your income from services. The part of your contributions above 10% of your income is deducted from taxable income.
- IRS: your taxable income is added to any other income and taxed on the same scale as salaries. Clients with organised accounts withhold 23% (or 11.5% for other services) as an advance; you settle the difference in your annual return.
Assumptions
- A single person whose only income is this freelance work, resident in mainland Portugal, 2026 rules.
- The mínimo de existência, IRS Jovem, IFICI and organised accounts (contabilidade organizada) are not included.
- Social security is worked out on the yearly income; quarterly declarations and the ±25% option can shift payments between years.
Frequently asked questions
How much do freelancers pay in tax in Portugal?
On €40,000 of professional fees in 2026, a freelancer in the simplified regime pays about €5,992 social security and €5,808 IRS, keeping €28,200 a year (€2,350 a month). An employee on the same gross keeps €27,701.
How much social security does a trabalhador independente pay?
21.4% of 70% of your income from services, declared every quarter, with a minimum of €20 a month. The first 12 months after you register are free, and the monthly base is capped at 12 times the IAS (€6,445.56 in 2026).
Do I have to charge VAT?
Not if your turnover in the previous year was under €15,000 (article 53 of the VAT Code). You leave the exemption once this year's turnover passes €18,750.
Can I use IRS Jovem or IFICI as a freelancer?
Yes, both cover self-employed income from category B. This calculator does not apply them yet, because the tax authority has not confirmed exactly which income figure the exemption applies to for the simplified regime.
Sources: Portal das Finanças: CIRS article 31 (simplified regime coefficients), Portal das Finanças: CIRS article 25 (specific deduction, 8.54 × IAS), Segurança Social: practical guide for self-employed workers, Portal das Finanças: CIRS article 101 (withholding rates), AT Newsletter 39 (January 2026): IAS, VAT exemption limit and 2026 IRS scale. Employees: Portugal take-home pay calculator.