Freelancers in Portugal: Taxation and Contribution Guide
More and more professionals decide to move to Portugal to work as freelancers. By becoming tax residents in Portugal, even if under the special tax regime for Non-habitual Residents in Portugal (NHR), and regardless of whether their income is earned in Portugal or abroad, these professionals must register as freelancers, becoming liable to the respective tax and contributory regime.
Workers who perform an activity that is not subject to an employment contract (or legally equivalent contract) for the supply of services or for commercial or industrial purposes, fit into the category of this regime. Fiscally speaking, the income derived from the self-employed professional activity is considered Category B income and is generally taxed at a progressive rate that may be as high as 48%, in accordance with the personal income tax rate tables in effect. It should be pointed out that the personal income tax rate tables applicable to the Autonomous Regions of Madeira and Azores are different from those applied to residents of mainland Portugal. Non-habitual residents who perform activities that are considered to be of high added value may benefit from a fixed personal income tax rate and even benefit from some exemptions, should the necessary requirements be met. In light of their importance, it is crucial that registration, inclusion in the proper framework, and compliance with taxation and contribution obligations by self-employed persons be duly assured.
We have prepared a Taxation and Contribution Guide, which you can download below. By reading it, you will better understand the legal framework and your tax obligations as a freelancer in Portugal.
NEWCO, through its team of certified accountants, supports the Non-habitual Resident who wishes to develop professional activities in Portugal, from the initial registration as a NHR to starting a business, identifying the most appropriate accounting regime, and fulfilling all tax and contributory obligations inherent to your activity.
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