RealUtil
A working estimate of your IRS and Social Security as a recibos-verdes freelancer in Portugal. Covers the NHR / IFICI flat rate, new-activity discounts in years 1 and 2, dependent deductions, and the 15% e-Fatura rule.
Open calculator ↓How this works
1. Coefficient on the gross. Under the simplified regime, only a slice of your gross income is taxable. For professional services that base coefficient is 0.75. For goods and hospitality it's 0.15. The rest is treated as fictitious expenses.
2. New-activity reduction. Article 31(10) of the IRS Code halves the coefficient in your first year of self-employment and reduces it by 25% in your second. So year 1 services land on a coefficient of 0.375, year 2 on 0.5625.
3. The 15% justification rule. For services you must justify 15% of gross income with business expenses - but the specific deduction (8.54 × IAS, €4,587 in 2026) and the part of your Social Security up to 10% of gross already count toward it automatically. Only the gap that remains after those plus your documented business expenses is added back to your taxable base. The reduction in (2) doesn't waive this rule.
4. IRS, progressive or flat 20%. Standard taxable income passes through 9 brackets from 12.5% to 48% (plus a solidarity surcharge above €80k). Under NHR or IFICI, qualifying Cat B income is taxed at a flat 20% instead, for 10 years.
5. Dependent deductions. These come off the IRS owed: €600 per dependent, +€126 for each child aged 3 or under, and +€300 for the second and later dependents aged 6 or under (so a young second child is worth €900).
6. Social Security. Independent workers pay 21.4% on the relevant income - 70% of services income, 20% for goods or hospitality. The monthly base is capped at 12 × IAS (€6,446/mo in 2026) with a €20/mo floor. Year 1 of activity is fully exempt for the first 12 months, automatically. Year 2 onward is the full rate.
7. The Social Security deduction. The part of your mandatory Social Security above 10% of gross income is deducted directly from your post-coefficient income (IRS Code art. 31(2)), in addition to the e-Fatura credit in (3). This is why a real services freelancer's taxable income lands below the raw 75% coefficient.
Sources
• PwC Portugal: Social Security 2026
• gov.pt: Social Security for self-employed
• gov.pt: First-year exemption
• PwC Tax Summaries: tax credits and incentives
• Código do IRS, art. 31.º & 25.º (Portal das Finanças)
• IAS 2026 €537,13 - Portaria n.º 480-A/2025/1 (DR)
Common questions
Does the year-1 IRS reduction stack with the SS exemption?
Do I qualify for NHR or IFICI?
What if I don't document the 15% in expenses?
When are Social Security contributions actually paid?
Why is my IRS so low when I add NHR?
Why won't this match my accountant to the euro?
Why is the Social Security estimate higher than what I actually pay?
4 e-Fatura credits optional
Personal IRS credits, separate from the business expenses above. Enter the credit you realistically reach in each — the everyday two are pure NIF discipline; health, education and rent need real spending in that category. The sum is capped by your income.
You've reached your income ceiling — adding more in these categories won't increase the credit.
Portugal's tax code has a line for everything, and an exception for every line. Treat the number below as a good estimate, not a verdict. Your accountant will land a few percent off it, and on that day they're the one who's right.