Portugal Freelancer Tax Calculator 2026
Enter your income and see an estimate of IRS withholding, Social Security, and net income as a self-employed worker (recibos verdes) in Portugal, using the 2026 rules (simplified regime, Category B).
Estimated net income / month
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Gross income
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IRS withheld
€0
Social Security
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How net income is calculated for freelancers (recibos verdes)
Under the simplified regime (Category B), Portugal's tax authority doesn't tax your gross income directly. A coefficient is first applied to your annual gross income, 75% under the standard regime, to reach your taxable income, which is then subject to progressive IRS brackets. Social Security is calculated separately, on 70% of your relevant income over the last three months (capped at 12x the IAS per year).
This calculator applies the official "average rate + marginal rate" simplified method: up to the previous bracket's limit, the accumulated average rate for that bracket applies, and only the excess is taxed at the marginal rate of the bracket your taxable income falls into. It's the same method used in the official withholding tables.
Simplified regime: reduced coefficients in the 1st and 2nd year
Anyone just starting out gets a reduced coefficient in their first two years of activity: 37.5% in the first year and 56.25% in the second, instead of the usual 75%, which significantly lowers taxable income (and therefore IRS) during that period. From the third year onward, the standard 75% coefficient applies.
Social Security exemption in the first year
Anyone opening activity as a self-employed worker for the first time generally gets an exemption from Social Security contributions for the first 12 months of activity. After that period, contributions are calculated normally (21.4% of 70% of relevant income, with a monthly minimum). This calculator models that exemption as an option you can toggle.
VAT exemption (and why it isn't part of this calculation)
Anyone issuing recibos verdes who expects (or invoiced in the previous year) less than €15,000 generally falls automatically under the VAT exemption regime (article 53 of the VAT Code), meaning no VAT is charged on invoices or handed over to the state, but VAT on business expenses can't be deducted either. Above that threshold, or by choice, normal VAT charging applies. This calculator focuses only on IRS and Social Security, VAT doesn't affect your take-home net income the same way taxable IRS income does, so it isn't part of this calculation.
What this calculator doesn't replace
These figures are a careful estimate based on the official 2026 tables and formulas, but they don't account for every particularity of your situation (for example, specific deductions, dependent ascendants, or less common special regimes). For your actual IRS tax return, or for decisions that depend on an exact figure, talk to a certified accountant.
Frequently asked questions
Are "recibos verdes" and "self-employed worker" the same thing?
Yes, "recibos verdes" is the everyday term for working as a self-employed/freelance worker in Portugal (Category B of IRS), issuing invoices through the Finance Portal instead of receiving a salary with tax withheld at source. "Recibos verdes" is the colloquial term, "self-employed worker" is the official one, this calculator covers both.
What taxes does a self-employed worker pay in Portugal?
Two main ones: IRS (Category B, withheld on each invoice or paid on account) and Social Security (21.4% on 70% of relevant income over the last three months, usually exempt in the first year of activity). There can also be VAT, depending on annual income, see the next question.
When is a self-employed worker exempt from VAT?
Anyone who expects (or invoiced in the previous year) less than €15,000 generally falls automatically under the VAT exemption regime (article 53 of the VAT Code): no VAT is charged on invoices or handed over to the state, but VAT on business expenses can't be deducted either. Above that threshold, or by choice, normal VAT charging applies.
Does a self-employed worker always need an accountant?
It's not a legal requirement to have a certified accountant while under the simplified regime, but it becomes mandatory once you move to organized accounting (generally above €200,000 of annual income, or by choice). Even without that obligation, many people hire an accountant to make sure their tax framework and filings (VAT, withholdings) are correct.
Now you know your net income. Do you know how much you can spend per day until your next payment?
Otterbond shows how much you can safely spend per day until your next payday. Add what you owe for IRS and Social Security as a monthly savings fund, and the daily number subtracts it.
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