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What recibos verdes areOpening activityInvoicing and reporting cycleHow the income is taxedCommon questionsWhat recibos verdes are
Recibos verdes, literally green receipts, is Portugal's system for self-employed work. You register an activity with the tax office, invoice clients through the Financas portal, and the receipts feed your tax and social security position automatically. If you freelance, consult, or contract from Portugal, this is the framework you work inside.
This guide is the map. The two companion pieces go deep on the parts with real money attached: the simplified regime coefficients and social security contributions.
Opening activity
Before you open activity
Prepare these details before completing the activity questionnaire. Your answers determine the relevant IRS and IVA regimes.
- Activity codeIdentify the CIRS or CAE activity you will carry out.
- Expected turnoverEstimate business income through the end of the year.
- Bank accountHave the IBAN and BIC/SWIFT for an account in your name.
Register the activity
Done online in the portal or at a tax office: you declare your activity code, expected turnover, and start date. Free, and effective immediately.
Choose your IVA (VAT) position
Expected turnover at or below the exemption threshold (15,000 euros in 2026) lets you invoice without charging IVA under article 53. Above it, you charge and file IVA.
Get your social security number
Registration with Seguranca Social follows activity opening. Your first 12 months as a first-time self-employed worker are generally contribution-exempt.
Issue the right document
Use a fatura when the service date and payment date differ, a fatura-recibo when they coincide, and a recibo when later payment settles an existing fatura. The Portal das Financas records the client, amount, IVA treatment, and any withholding.
Invoicing and reporting cycle
One job. Which document?
Match the document to the timing of the transaction and payment. Keep the invoice linked to its receipt.
- Different datesFatura for the transaction → Recibo when payment is received.
- Same dateFatura-recibo combines the transaction and its payment.
| Rhythm | What happens |
|---|---|
| Each service | Issue the invoice by the applicable deadline; use a fatura-recibo for same-day payment or a recibo when a previously invoiced amount is paid |
| Quarterly | Declare income to Seguranca Social (once contributing); pay monthly contributions |
| Periodically | IVA declarations, if you are above the exemption threshold |
| Every spring | Modelo 3 with Anexo B: your freelance income joins your annual return |
How the income is taxed
Most freelancers start in the simplified regime, where a coefficient of turnover is deemed taxable instead of tracking every business expense. For most professional services the coefficient is 75%, meaning tax applies to three quarters of what you invoice. Whether that is generous or painful depends on your real cost structure, which is exactly the question the regime-comparison guide answers.
Keep three sets of records
A reading aid for the invoicing, contribution and annual-return sections in this guide. Separate folders make the different obligations easier to follow.
- TransactionsInvoices, receipts and client withholding records.
- ContributionsDeclarations, payment notices and payment evidence.
- Annual returnIncome summaries and records supporting the return.
Worked example
Maya, a UX consultant in Porto, invoices 40,000 euros in a year under the simplified regime, using a round 40,000 for illustration.
The 30,000 is what enters her annual return through Anexo B; the tax actually due on it depends on the progressive scale and the rest of her income.
When you invoice Portuguese companies, they generally withhold tax at source on your recibos, which becomes a credit on your annual return. New freelancers under the turnover threshold can waive withholding in their first years.
Common mistakes
- Treating every document as a recibo. A fatura records the service before later payment, a fatura-recibo covers a service paid at the same time, and a recibo records payment of an existing fatura.
- Assuming the IVA exemption is permanent. Cross the 15,000 euro threshold and you move into charging and filing IVA; the exemption is a position you can outgrow.
- Counting the first-year exemption twice. It keys on first enrollment with Seguranca Social, once, not per activity or per return to freelancing.
- Leaving Seguranca Social Direta for later. The quarterly declarations and monthly payments run through it once you contribute; set it up when you open activity, not when the first deadline lands.
- Losing track of client withholding. Tax withheld on your recibos by Portuguese clients is a credit on your Modelo 3; forget it and you overpay or file a messy correction.
Common questions
Can I freelance alongside an employment contract?
Yes, the categories coexist. Employment income files under its own annex, freelance income under Anexo B, and social security has specific rules for accumulation.
Do I need a Portuguese accountant?
Not legally, under the simplified regime. Organized accounting requires a certified accountant. Many freelancers self-manage the simplified regime after the first year.
What about foreign clients?
You still issue the appropriate invoice document. IVA treatment depends on the client's location and status, so confirm the place-of-supply and reverse-charge rules for the specific service.
I already freelance elsewhere. Does that count as first-time?
The first-year social security exemption keys on first enrollment in the Portuguese system, not on your career history abroad.
Sources
- Autoridade Tributária, Fatura e recibo (document types, invoice timing, IVA and withholding)
- CIVA article 53 exemption, 2026 threshold
- Segurança Social, self-employed worker enrollment rules
- TaxClara, Portutax, and GrowIN Portugal 2026 freelancer guides (checked August 2026)
This guide is general information, not personalised tax advice. Rules and rates change, and your facts can move you off the defaults described here. Confirm your position with a qualified professional before acting on it.