For solo entrepreneurs in Portugal
Portugal freelance tax calculator
2026 rates and thresholds
If you're freelancing in Portugal as a trabalhador independente (solo entrepreneur) on the simplified regime, this calculator shows what you'll owe in income tax (IRS) and Social Security contributions - and how much you need to prove in documented expenses.
How it works
- Portugal assumes 25% of your income is expenses and only taxes the remaining 75%. No need to prove every purchase.
- In your first calendar year, only 37.5% is taxable - roughly half the normal rate. Second year: 56.25%. Year three onward: the standard 75%.
- Social Security enrolment is deferred if this is your first ever activity: you join the regime on the first day of the 12th month after your start date, and owe nothing before then. Once enrolled, you pay 21.4% on 70% of your income. The monthly contribution base is capped at 12 × the Social Support Index (IAS), which means the maximum you'll pay is around €1,379/month (~€16,552/year) regardless of how much you earn.
- You must prove 15% of gross income in documented expenses - invoices with your NIF registered in the e-fatura system. Part of this is covered automatically: you get the higher of a fixed deduction of €4,587.09 or your actual Social Security contributions. The rest you need to cover with documented business expenses. If you fall short, the unproven amount gets added back to your taxable income, which means you pay more IRS. Try adjusting the “Documented expenses” in the calculator below to see the impact.
- Tip: The first-year discount is per calendar year, not your first 12 months. Start in January to get the full benefit.
Year 1 January–December | Year 2 | Year 3+ | |
|---|---|---|---|
| Annual income (€) | |||
| Documented expenses (€) | |||
| Business activity | |||
| Gross income | €40,000 | €120,000 | €160,000 |
| Assumed expenses (25%) | −€10,000 | −€30,000 | −€40,000 |
| Taxable before discount | €30,000 | €90,000 | €120,000 |
| New activity discount | −50% | −25% | - |
| Taxable income | €15,000 (37.5%) | €67,500 (56.3%) | €120,000 (75%) |
| 15% expense proof | |||
| Required (15% of gross) | €6,000 | €18,000 | €24,000 |
| Covered automatically(2026 specific deduction, or SS up to 10% of gross) | −€4,587 | −€12,000 | −€16,000 |
| Your documented expenses | −€1,413 | −€2,000 | −€2,000 |
| Shortfall | None | €4,000 | €6,000 |
| Taxable income (before) | €15,000 | €67,500 | €120,000 |
| − Social Security above 10% of gross (Art. 31 nº2) | - | −€4,552 | −€552 |
| + shortfall added back | - | +€4,000 | +€6,000 |
| Adjusted taxable income | €15,000 | €66,948 | €125,448 |
| What you owe | |||
| Income tax (IRS) | €2,221 | €21,417 | €48,828 |
| Social Security(21.4% on 70% of income) | Exempt | €16,552 | €16,552 |
| Total | €2,221 | €37,969 | €65,380 |
| Effective rate | 5.6% | 31.6% | 40.9% |
| Estimated take-home | €37,779 | €82,031 | €94,620 |
About this estimate
IRS calculated using 2026 brackets for a single taxpayer with no dependents, no other income, and standard deductions. Your actual tax will differ based on marital status, dependents, other income (employment, rental, investments), NHR/IFICI tax status, withholding tax (retenção na fonte), and municipal surcharges. If this is your first-ever activity, Social Security contributions start in your 12th month rather than being waived. The reduced IRS coefficient covers your first two calendar years and requires no employment or pension income in the same year.
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Want to understand the system behind these numbers? Read about the regime simplificado, see the simplified regime coefficients explained, or learn how Social Security contributions work for freelancers.
Save this estimate - the numbers change after year one
Social Security starts once you are enrolled, at the end of your first year. This estimate shows what you'll pay in year 2 and beyond. Send it somewhere you'll find it when the bill arrives.
See these numbers update in real time as you invoice. Descodify calculates your tax, SS, and expense proof from your actual data.
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