Recibos verdes: how to register as self-employed in Portugal — 2026 guide
Registering as a freelancer with the Portuguese tax office is free, online and takes minutes. VAT, social security and first-year exemptions, explained.
Before you can issue your first recibo verde — Portugal’s freelance invoice-receipt — there is one mandatory step: opening activity (“abrir atividade”) with the tax office. The good news fits in a sentence: it is free, done online on the Portal das Finanças in under 15 minutes, and first-year exemptions soften the landing into self-employment considerably.
How do you register as self-employed in Portugal?
On the Portal das Finanças, with your tax credentials, look for “Início de Atividade” and fill in the declaration: choose your activity code (CAE or CIRS code), estimate your turnover for the year and provide your IBAN. Social Security is notified automatically — no second registration needed — and you can issue receipts the same day, also through the portal. If you estimate up to €15,000 of annual turnover, you fall under the Article 53 VAT exemption: you charge no VAT to clients and file no periodic VAT returns.
How much social security do freelancers pay?
In the first year, nothing — provided you have never worked as self-employed before (or haven’t in at least three years), you get a full 12-month exemption from contributions. After that, the general rule is a 21.4% contribution on your relevant income, calculated through the quarterly declarations you file with Social Security. For income tax, freelance earnings fall under category B; many business clients apply withholding at source, and low earners can request a waiver. It is worth doing the maths carefully in year one — and if you are under 35, check whether the IRS Jovem youth tax break stacks on top.
What support exists for people starting out?
Going solo does not have to mean going without a net. The IEFP subsidises training through the Cheque-Formação scheme, and the official self-employed worker’s guide, with every tax and contribution obligation, is published on the gov.pt portal.
Frequently asked questions
Do I need an accountant?
Under the simplified regime, no — most freelancers handle everything on the portal. With organised accounting, yes.
Can I combine recibos verdes with an employment contract?
Yes; each income type is taxed in its own category, and combining them is common.
Does closing your activity cost anything?
No — cessation is also free and done online.
Illustrative · Photo: Kaboompics / Pexels