Coeficiente do Regime Simplificado
Simplified Regime Coefficient
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The multiplier that determines how much of your gross income is taxable under the IRS simplified regime. For professional services it's 0.75, meaning 75% of gross is taxable and 25% is deemed business costs.
The simplified regime's central mechanic is the coefficient. It's the number that decides how much of your gross income actually gets taxed.
Why coefficients exist
The simplified regime is designed for solo entrepreneurs who don't want to track every business expense. Instead of declaring actual costs, rent, equipment, software subscriptions, client entertainment, the regime assumes a fixed percentage of your revenue covers business costs. That assumed cost is built into the coefficient.
For professional services, the coefficient is 0.75. This means AT treats 75% of your gross income as the taxable base. The other 25% is presumed to be business costs, no receipts required.
If you earned €48,000 in consulting fees in 2025:
- Gross income: €48,000
- Taxable base (75%): €36,000
- The €12,000 "non-taxable" portion is your deemed expense deduction
You don't claim it separately, it's automatic.
Coefficients by activity type
| Activity | Coefficient | Taxable % |
|---|---|---|
| Professional services (Art. 151, most freelancers) | 0.75 | 75% |
| Other services (not listed in Art. 151) | 0.35 | 35% |
| Goods sales | 0.15 | 15% |
| Short-term accommodation | 0.35 | 35% |
| Intellectual property / crypto mining | 0.95 | 95% |
Art. 151 of the CIRS covers most professional activities: IT, consulting, legal, medical, architecture, engineering, accounting, advertising, design, translation. If you're a typical service freelancer, you're almost certainly at 0.75.
The 0.35 coefficient for non-listed services is actually better (35% taxable is a larger implied cost deduction), but it applies to a narrower set of activities.
What gets deducted on top
The coefficient isn't the only deduction. After the coefficient reduces your gross to the taxable base, you can further deduct your actual Social Security contributions paid, declared in Campo 501 of Anexo B.
In the example above: €36,000 taxable base, minus €3,500 in SS contributions = €32,500 final taxable income. Progressive IRS rates then apply to €32,500.
The first-year discount
In the first two years of activity, a scaling rule applies:
- Year 1: Taxable base is 50% of the normal coefficient (for Art. 151 services: 37.5% instead of 75%)
- Year 2: 75% of the normal coefficient (56.25% instead of 75%)
- Year 3+: Standard coefficient
This applies only if you had no similar registered activity in the previous 5 years and have no simultaneous employment or pension income in the same year.
The discount doesn't apply automatically in some edge cases, verify in your first-year simulation.
Checking your coefficient
Your applicable coefficient is based on your CAE code or registered profession. You can see your registered activity type in Portal das Finanças under your activity profile. If you're unsure which coefficient applies, the IRS simulation in the portal will show the calculation, and Descodify's tax calculator can estimate your liability before you log in.
Frequently asked questions
What is the simplified regime coefficient?
The coefficient is a multiplier applied to your gross income to determine your taxable income under the simplified regime. Instead of deducting actual business expenses, the system applies a fixed deemed-cost coefficient. For professional services (the most common freelancer situation), the coefficient is 0.75, meaning 75% of your gross income is taxable.
What coefficient applies to my freelance services?
Most freelancers providing professional services (consulting, IT, design, writing, legal, medical, engineering, etc.) fall under the 0.75 coefficient. This applies to activities listed in Article 151 of the IRS code. If your services aren't listed in Art. 151, a 0.35 coefficient may apply instead, meaning only 35% of gross is taxable, which is better but less common for typical professionals.
How does the coefficient affect my actual tax bill?
The coefficient reduces your taxable base before IRS rates apply. On €40,000 gross professional income: coefficient 0.75 → €30,000 taxable. Then subtract Social Security contributions (say €4,000) → €26,000 taxable base. Progressive IRS rates apply to €26,000, not €40,000. The difference is substantial, the coefficient is the main reason why the simplified regime is straightforward for most freelancers.
Do I choose my coefficient, or does AT decide?
AT determines the coefficient based on your registered activity type (CAE or professional code). You don't choose it, but you should verify it's correct. If you do mixed activities (some Art. 151 services, some goods sales), different coefficients apply to different income streams, and the calculation can get more complex.
Is there a first-year discount on the coefficient?
Yes, in the first year of activity (and the second year), the taxable percentage is reduced. In year one, only 37.5% of professional services income is taxable (half the normal 75%). In year two, it's 56.25%. This applies provided you had no similar registered activity in the previous 5 years and have no simultaneous employment or pension income.
Related terms
Portugal's simplified tax regime for solo entrepreneurs and small businesses, where taxable income is calculated using fixed coefficients applied to gross revenue.
Categoria BCategory B: Business and Professional IncomeThe IRS income category for self-employment income in Portugal. Covers freelancers, sole traders, and independent professionals. Declared in Anexo B of the Modelo 3 IRS return.
IRSImposto sobre o Rendimento das Pessoas Singulares · Personal Income TaxPortugal's personal income tax: the annual tax that solo entrepreneurs pay on their individual income, declared each spring for the previous year's earnings.
Anexo BAnnex B: Self-Employment Income (Simplified Regime)The IRS annex where solo entrepreneurs on the simplified regime declare their self-employment income (Category B). Contains your gross revenue, withholding tax, and activity codes.
Recibo VerdeGreen ReceiptA combined invoice-receipt (fatura-recibo) issued by solo entrepreneurs in Portugal through the Portal das Finanças when they receive payment for services.
Deduções EspecíficasSpecific DeductionsIRS deductions applied to each income category before tax rates are calculated. For Category B (self-employment), the simplified regime's deemed cost coefficient acts as the specific deduction. For Category A employees, there's a fixed deduction of €4,462 or actual mandatory contributions if higher.