Simplified Regime Coefficients, IRS & IRC (Portugal 2026)

What coefficients do

Under the simplified regime (regime simplificado), you don't deduct individual business expenses. Instead, the tax authority applies a coefficient to your gross revenue. The result is your taxable income.

A coefficient of 0.75 means 75% of your revenue is taxable, and the remaining 25% is assumed to be business costs.

IRS coefficients (sole proprietors)

For trabalhadores independentes under the IRS simplified regime. Legal basis: Article 31 CIRS.

Activity type	Coefficient	Taxable %
Services, Art. 151 listed professions	0.75	75%
Services, not in Art. 151	0.35	35%
Sales of goods	0.15	15%
Short-term accommodation	0.35	35%
IP licensing, crypto mining	0.95	95%
Operating subsidies	0.10	10%

Art. 151 professions include: software developers, IT consultants, architects, lawyers, accountants, doctors, engineers, and most professional services. If you're a freelance developer or consultant, you're almost certainly at 0.75.

First-year discount

Year	Services coefficient (Art. 151)	Taxable %
Year 1	0.375	37.5%
Year 2	0.5625	56.25%
Year 3+	0.75	75%

Conditions: no employment or pension income in the same calendar year, and no similar activity registered in the last 5 years. The discount is calculated by calendar year from January 1, not by 12 months from your registration date.

Worked examples

The examples below use the 0.75 coefficient for Art. 151 services (software developers, consultants, architects, accountants, engineers). Actual IRS owed depends on your full Modelo 3, including deductions, other income sources, and any 15% expense adjustments.

€20,000 gross (first year of activity)

Year-one coefficient: 0.375 (the standard 0.75 halved).

Item	Value
Gross revenue	€20,000
Coefficient	0.375 (year-1 discount)
Taxable income	€7,500

In your first calendar year, you pay IRS on €7,500 of €20,000 gross. The 15% expense rule applies at €3,000 (15% of €20,000). First-year freelancers not yet enrolled in Social Security typically have their automatic specific deduction cover this threshold automatically.

€40,000 gross (year 3+, standard coefficient)

Standard coefficient: 0.75.

Item	Value
Gross revenue	€40,000
Coefficient	0.75
Taxable income (before expense adjustment)	€30,000
15% expense threshold	€6,000

AT requires documented expenses of at least €6,000. The automatic legs cannot reach it at this income: Social Security counts only up to 10% of gross (€4,000 here), which is below the specific deduction, so coverage is the deduction alone and roughly €1,413 must be documented. That shortfall does not depend on your SS contribution level - no level closes it. The 15% expense rule shows the exact calculation and what counts toward the threshold.

€80,000 gross (year 3+, higher earner)

Standard coefficient: 0.75.

Item	Value
Gross revenue	€80,000
Coefficient	0.75
Taxable income (before expense adjustment)	€60,000
15% expense threshold	€12,000

At €80,000 gross, the €12,000 expense threshold almost always requires documented business expenses on top of the automatic legs. Software subscriptions, professional development, hardware purchases, and professional services all qualify. They need to be linked to your NIF in the e-fatura system or declared directly in Anexo B Quadro 17.

The €200,000 revenue ceiling

The simplified regime is only available up to €200,000 in annual gross revenue. Above that, organized accounting (contabilidade organizada) is mandatory, and expenses are deducted individually rather than by coefficient. The tax calculator lets you compare the two regimes at different revenue levels.

The 15% expense rule

Services freelancers (0.75 and 0.35 coefficients) must prove at least 15% of their gross services revenue in documented business expenses. If your documented expenses fall short of the 15% floor, AT adds the gap back to your taxable income.

Social Security contributions and the automatic specific deduction cover the floor automatically up to a point. Above that income level, most services freelancers need real documented expenses. Goods sellers (0.15 coefficient) are not subject to this rule.

The 15% expense rule covers what counts, what the automatic legs provide, and who is most likely to need to document extra.

IRC coefficients (companies)

For companies (Lda, Unipessoal Lda) on the IRC simplified regime. Legal basis: Article 86-B CIRC.

Revenue type	Coefficient	Effective tax (at 15% PME)
Sales of goods, restaurant/hotel	0.04	~0.6%
Services (general)	0.10	~1.5%
Cryptocurrency income	0.15	~2.25%
Non-operating subsidies	0.30	~4.5%
Local accommodation	0.35	~5.25%
Professional services (Art. 151)	0.75	~11.25%
Crypto mining, IP, capital income	0.95	~14.25%

IRC startup bonus

Year	General services coefficient	Effective tax
Year 1	0.05 (halved)	~0.75%
Year 2	0.075 (reduced 25%)	~1.1%
Year 3+	0.10 (standard)	~1.5%

IRS vs IRC simplified: the key difference

The same activity can have very different coefficients depending on whether you operate as a sole proprietor or a company. The gap is smaller than it first looks, and for a software consultant it may not exist at all. Art. 86-B nº1 b) CIRC puts activities listed in the Art. 151 CIRS table at 0.75 under IRC as well, the same coefficient as IRS, and code 1332 (programadores informáticos) is in that list. The 0.10 coefficient is alínea c), restantes prestações de serviços. Which one applies is a substance question and AT looks at the activity actually performed rather than the CAE on file, so confirm it with a certified accountant before opting in.

The comparison is not straightforward, though. IRC applies at 15% to taxable income on the first €50,000 (PME rate), which keeps the effective rate low at the coefficients above. But an Lda also has Social Security obligations, accounting costs, and administrative overhead that a sole proprietor doesn't. The tax calculator shows the take-home comparison for both structures at your revenue level.

See also: IRS filing for sole proprietors in Portugal and Social Security for freelancers in Portugal.