How to register as self-employed in Portugal
Freelancers and sole traders in Portugal "open activity" (abrir atividade) at Finanças before their first invoice. From then on you issue your invoices in the Portal das Finanças, the "recibos verdes" everyone talks about.
Short answer. Submit the declaração de início de atividade online in the Portal das Finanças, or at a Serviço de Finanças or Loja do Cidadão, before your first invoice. Social Security exempts you from contributions for your first 12 months, but you still file the quarterly declaration.
Opening activity at Finanças
Online: Portal das Finanças > Cidadãos > Serviços > Atividade; or in person at any Serviço de Finanças or Loja do Cidadão. You declare:
- your activity code (CAE or CIRS code);
- the expected start date;
- your expected VAT position;
- your IBAN.
You need a NIF first (how to get one).
Social Security
- New self-employed workers are exempt from contributions for their first 12 months.
- You still submit the quarterly income declaration, in January, April, July and October.
- After the exemption, the rate is 21.4% on 70% of your income from services.
You also need a NISS: see how to get a NISS.
Not an EU citizen: two checks first
- Your permit. Check that your residence permit type allows the self-employed work you plan. Holders of an employment permit who also want to work independently have to ask AIMA, by appointment, to replace the permit.
- A VAT fiscal representative. While your tax address is still outside the EU, self-employment here needs a VAT fiscal representative resident in Portugal, appointed before you start. The electronic notifications do not replace it. Once you are a Portuguese tax resident this no longer applies.
At tax time
Your self-employed income goes on your yearly IRS return (Annex B), filed between 1 April and 30 June for the previous year. For the first year, an accountant is worth it.