Freelancing in Portugal combines the freedom of self-employment with the country’s rich culture, beautiful landscapes, and pleasant climate. Here's a comprehensive guide to becoming a freelancer in Portugal, covering everything from registration to tax obligations.

*Please be aware that we do not update this information in real time, so you should verify that the law has not changed recently.

Eligibility for Freelancing in Portugal

To work as a freelancer in Portugal:

• You must legally reside in the country with a valid visa or residence permit.

• Non-residents and expats may need additional documentation, such as proof of address and a tax representative.

Required Documents to Register as a Freelancer

1. Numero de Identificacao Fiscal (NIF):

• A tax identification number issued by the Portuguese tax authority.

• Application is free but requires:

• Passport.

• Proof of a tax representative if you’re a foreigner.

2. IBAN:

• Open a business bank account with a Portuguese bank.

• Required documents:

• Passport.

• Proof of residency.

3. Certificate of Residency:

• Obtainable at the Junta de Freguesia (local parish office).

• Submit your NIF, rental contract, and passport as proof.

4. NISS (Social Security Number):

• Issued by the social security office, requiring:

• Certificate of Residency.

• Passport.

• NIF.

• Processing can take months, so apply early. Freelancers may be exempt from contributions during their first 12 months.

Tax Responsibilities for Freelancers in Portugal

1. Income Tax:

• Portugal uses a progressive tax system:

• Rates start at 14.5% for low earners.

• Top earners pay up to 48%.

• Solidarity tax applies to incomes over €80,000, ranging from 2.5% to 5%.

2. VAT (Value-Added Tax):

• Standard rate: 23%.

• Reduced rates: 13% or 6% (depending on services or goods).

• VAT thresholds:

• €12,500 for businesses.

• €25,000 for self-employed individuals.

• Non-residents must pay VAT regardless of income levels.

3. VAT Exemptions:

• To claim, submit a single invoice detailing annual income below the exemption threshold.

How to Create VAT-Compliant Invoices

Invoices must include:

• Seller and buyer names and addresses.

• Tax identification numbers.

• Description of goods or services sold.

• Date of the transaction.

• Total cost and applicable VAT rate.

Prepare invoices throughout the year to ensure compliance, even if your income starts below the VAT threshold.

Five Steps to Register Your Freelance Business in Portugal

1. Apply for a Certificate of Residency.

2. Request a NIF.

3. Set up a Business Bank Account.

4. Register to Pay VAT.

5. Request an NISS.

Final Thoughts