Freelancer net income under each regime

Simplificado applies a statutory coefficient to revenue — commonly 0.75 for article 151 professional services and 0.15 for sales of goods. It does not require organised accounts, but invoices and qualifying expense records still matter for the 15% adjustment. Organizada taxes documented profit and requires a certified accountant.

There is no universal 25% crossover. Model the correct activity coefficient, the Simplificado justified-expense adjustment, documented costs, accountant fee and marginal IRS rate. High recurring costs are a signal to compare, not a guaranteed result.

The 2026 CIRS art. 68 brackets for mainland Portugal run from 12.5% to 48%, with the art. 68-A solidarity surcharge above €80,000. For the ordinary scale, the tool applies the current 30% regional differential in Açores and Madeira. The simplified Social Security estimate uses 21.4% on 70% of services or 20% of goods income; mixed activity uses a disclosed midpoint.

On a first start of self-employed activity, compulsory coverage normally begins on the first day of the 12th month after activity starts. This is timing-based, not conditional on earning below €5,030. You may opt in earlier, while restarts can follow different rules; confirm your date in Segurança Social Direta.

You choose at the start of activity or submit an activity-change declaration by the end of March for that tax year. Mandatory Organizada starts in the following year after more than €200,000 in two consecutive years or more than €250,000 in one year.

CIRS art. 101 currently sets 23% for article-151 professional activities and 20% for qualifying IFICI Category B income. Other Category B income can use different rates, and an exemption may apply. Select the toggle only when your Portuguese payer is required to withhold; AT credits eligible withholding in the annual assessment.