Freelancer accounting

What are recibos verdes?

Recibos verdes are the electronic invoices Portuguese freelancers issue through the tax authority’s portal. Each one determines the IVA due, any IRS withholding, and the basis for Segurança Social contributions.

What is included

• issuing or checking your recibos verdes;
• periodic IVA returns (Portuguese VAT) where they apply;
• the quarterly Segurança Social declaration (Portuguese social security);
• managing the simplified regime or organised accounting;
• the annual IRS return, category B (Portuguese personal income tax);
• deadline reminders through the year.

Simplified regime or organised accounting?

	Simplified regime	Organised accounting
Income ceiling	Up to €200,000	None
Taxable base	Coefficient on gross income	Real profit, deductible costs
Certified accountant	Optional	Mandatory
Best when	Few business costs	High business costs

The right answer depends on your numbers: we run the comparison before you decide.

What about the first-year social security exemption?

Someone registering a new activity is generally exempt from contributions for the first twelve months, subject to the legal conditions. Contributions then become quarterly, calculated on relevant income.

Official sources

• Portal das Finanças
• Segurança Social Direta