Recibos Verdes: Working as a Freelancer in Portugal, Step by Step
Green receipts are how most freelancers bill in Portugal. Opening activity, the VAT exemption, Social Security after the first year and the quarterly declarations.
Freelancers in Portugal register as self-employed (trabalhador independente) by opening activity on the Portal das Finanças, then bill clients with electronic green receipts (recibos verdes). As of November 2026, turnover under €15,000 a year can be VAT-exempt, and Social Security contributions of 21.4% normally start after the first 12 months.
You need a NIF and access to the Portal das Finanças before you start. Rates and thresholds below are as of November 2026, from gov.pt, the Tax Authority and Social Security. Your exact taxes depend on your income and other activities, so a certified accountant (contabilista certificado) is worth a consultation in your first year.
How do I open activity as a freelancer?
You file a start-of-activity declaration (declaração de início de atividade) with the Tax Authority, online or at a tax office. The steps:
- Log in to the Portal das Finanças with your NIF and password or the Chave Móvel Digital.
- Open the start-of-activity declaration and choose the activity code that matches your work. Some professions have specific codes in the IRS Code list.
- Choose your VAT regime: the small-business exemption under article 53 of the VAT Code if you qualify, or the normal regime.
- Submit. Finanças tells Social Security automatically, and Social Security registers you as self-employed and notifies you.
If you are not a resident or your case is unusual, a tax office appointment can save corrections later. Lawyers and solicitors also issue green receipts but contribute to their own fund, CPAS, instead of Social Security.
How do I issue a recibo verde?
Receipts are issued on the Portal das Finanças under “Faturas e recibos” and then “Emitir”. You pick one of three documents:
- Fatura-recibo (invoice-receipt): when you are paid at the moment you issue it.
- Fatura (invoice): when payment comes later.
- Recibo (receipt): issued against an earlier invoice once it is paid.
You enter the client’s NIF, the date, a description of the service, the price before tax, and either the VAT rate or the reason for the exemption. On an invoice-receipt or receipt you also choose the IRS withholding that applies, if any. For clients abroad, choose “foreign client” and the country.
Do I have to charge VAT?
Not if your turnover stays under €15,000 a year and you meet the other conditions of article 53 of the VAT Code, as gov.pt confirms for 2026. Exempt freelancers write “IVA – regime de isenção” on their receipts and cannot deduct VAT on their purchases.
| VAT situation (as of November 2026) | What applies |
|---|---|
| Turnover under €15,000 a year | Can use the article 53 exemption |
| Turnover passes €18,750 during the year (25% above the limit) | Leave the exemption at once and charge VAT from the receipt that crosses it |
| Normal regime, turnover under €650,000 | Quarterly VAT return, due by the 15th of the second month after the quarter |
| Standard rate, mainland Portugal | 23% |
Services to businesses in other EU countries usually fall under the reverse charge: you do not add Portuguese VAT, you note the reverse charge on the receipt, and you file a recapitulative statement (Modelo 8). The gov.pt guide says that statement is due even under the article 53 exemption.
When do Social Security contributions start?
For a first-time freelancer, registration with Social Security takes effect on the first day of the 12th month after you start, so most people pay nothing during their first year. You can opt in earlier in a quarterly declaration if you want to build a contribution record for benefits.
Once you are in, the gov.pt guide for the self-employed and Social Security’s own practical guide set these rules:
- Your relevant income is 70% of what you invoiced for services (20% for sales of goods).
- The monthly base is one third of the relevant income for the previous quarter.
- The rate is 21.4% of that base (25.2% for sole traders, empresários em nome individual).
- The minimum contribution is €20 a month, even with little or no income.
- You pay between the 10th and the 20th of the following month.
A freelancer who invoiced €6,000 in a quarter has relevant income of €4,200, a monthly base of €1,400 and pays €299.60 a month. You need a NISS for all of this.
What are the quarterly declarations?
Every self-employed worker files a Social Security quarterly declaration (declaração trimestral) on Segurança Social Direta by the last day of January, April, July and October, covering the income of the previous three months. It sets your contributions for the next quarter. If your income changes a lot, the declaration is where the amount adjusts.
People who also have a job with an employer can be exempt from self-employed contributions if their freelance income stays below four times the Social Security index (IAS, €537.13 in 2026 according to gov.pt) and their salary meets the minimum conditions. Social Security usually applies this exemption itself; check your account.
How is the income taxed?
Freelance income is category B in the annual IRS return, filed from 1 April to 30 June for the previous year. Clients that are companies may withhold IRS on your receipts, which counts as an advance on your annual tax. See our guide to filing your IRS return, and check whether the IFICI regime applies to your profession.
Bottom line
Open activity before you send your first bill, put the first-year Social Security exemption date in your calendar, and set money aside from every receipt. Most surprises come when contributions start in month 12 or when turnover crosses the VAT limit mid-year.
FAQ
Can I issue recibos verdes while employed?
Yes. Many people combine a contract with freelance work. You may be exempt from self-employed Social Security contributions if your freelance income is low and your job already pays contributions.
Can I invoice clients outside the EU?
Yes. Services used outside the EU are generally not subject to Portuguese VAT, but the income still goes in your IRS return and counts for Social Security.
How do I stop being self-employed?
File a declaration of cessation of activity on the Portal das Finanças. Finanças informs Social Security, but check that your quarterly declarations and contributions are closed.
