Recibo Verde

The name translates to "green receipt," a holdover from the green paper forms that Portuguese freelancers used to fill out by hand. The paper is long gone. The name stuck, and it now refers to something you do on the Portal das Finanças (the tax authority's online portal).

What makes the Recibo Verde unusual is that it's a fatura-recibo, an invoice and a receipt fused into a single document. That hyphen is doing a lot of work. In most countries, you send an invoice when you do the work, and a receipt when you get paid. Two steps, two documents. Portugal collapsed them into one.

Cash-basis accounting in one document

This fusion is what makes cash-basis accounting work for solo entrepreneurs on the simplified regime (regime simplificado). You issue the Recibo Verde when you receive payment. That single action does three things at once: it invoices the client, confirms the payment, and registers your income with the tax authority.

No Recibo Verde, no tax event.

This is a genuine advantage. In Sweden, a freelancer issues a real invoice to the client and then separately books the income when payment arrives, two steps that need to stay in sync. In Portugal, there's only one step. The system is simpler, at least for domestic work.

Foreign clients: use the two-step process

The problem shows up when you work with foreign clients. A company in Berlin or Stockholm needs an invoice before they can pay you. Their accounts payable department needs a document to enter into their system, approve, and schedule for payment. That's how B2B works across Europe.

You can't issue a Recibo Verde before payment, it tells the tax authority that money changed hands.

The solution is the two-step process: issue a standard fatura (FT series) through certified invoicing software when the client needs an invoice, then issue a receipt (RC series) when payment arrives. Your IRS income and Social Security contributions are still based on payment timing, the simplified regime's cash-basis treatment applies regardless of which document type you use.

What goes on a Recibo Verde

When you fill one out on the Portal das Finanças, you'll enter:

• Your client's details (name, NIF or foreign VAT number, country)
• A description of the service
• The amount
• VAT treatment (exempt, applicable rate, or reverse charge for EU B2B)
• Whether income tax withholding (retenção na fonte) applies

The portal assigns a sequential number and the document is immediately registered with the tax authority. There's no draft state. Once you submit, it exists.

For domestic Portuguese clients, the Recibo Verde is the only document you need. For foreign clients who need an invoice before payment, use a standard fatura (FT) and close the loop with a receipt (RC) when payment arrives.

Further reading

• How to issue a Recibo Verde in Portugal, a step-by-step walkthrough of the Portal das Finanças: logging in, filling in client details, VAT treatment, and submitting
• Why every freelancer in Portugal talks about "green receipts", the history behind the name, from 1978 paper booklets to the Portal das Finanças
• Invoicing foreign clients as a solo entrepreneur in Portugal, why the two-step process works and why you don't need workarounds
• Portugal freelancer tax calculator - estimate your IRS and Social Security for the first 3 years based on your expected income
• Read your IRS declaration (comprovativo) - upload your PDF and see every field explained, including how your Recibo Verde income feeds into the final calculation