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Recibos Verdes Calculator: Portugal Self-Employed Tax

If you work on recibos verdes (self-employed invoices) in Portugal, two charges apply to what you bill: Social Security and IRS. Enter your annual income from services and see an estimate of your Social Security contribution, your IRS under the simplified regime, and the income you actually keep.

Use the gross annual income you bill for services (category B). In the first year of activity there is normally a Social Security exemption for the first 12 months.

Net income (year)
€21,560
€1,797 per month · total charge 28.1%
ItemAmount (year)
Gross income€30,000
Social Security (21.4% on 70%)−€4,494
IRS (simplified regime, 0.75 coefficient)−€3,946
Net income€21,560
Social Security (effective rate)
15%
On the relevant income: €21,000
IRS (effective rate)
13.2%
On the taxable income: €22,500

It estimates Social Security and IRS under the simplified regime for services, individual taxation. It does not cover the sale of goods, organised accounting, the minimum/maximum contribution-base limits, VAT, dependants, tax credits, IRS Jovem or the minimum-existence rule.

Educational estimate, not tax advice. The 21.4% rate, the 70% factor, the 0.75 coefficient and the IRS brackets are official for 2026. Check Segurança Social Direta and your assessment note.

Social Security: 21.4% on 70% of what you bill

As a self-employed worker, the Social Security contribution does not apply to everything you invoice. First the “relevant income” is worked out (for services that is 70% of what you receive) and the 21.4% rate is applied to that. In practice Social Security comes to about 15% of gross income. The base is assessed quarterly from the previous three months; this calculator works with the annual total.

IRS: the simplified regime taxes 75% of income

Under the simplified regime (income up to €200,000/year), IRS is not charged on all your income: a coefficient presumes your expenses. For professional services (the Art. 151 table) the coefficient is 0.75, so 75% of what you bill is taxed and the other 25% is treated as expenses. The general IRS brackets (the same rates an employee pays) then apply to that 75%.

What the calculator assumes (and does not cover)

It assumes professional services under the simplified regime, individual taxation, and that documented expenses (including your own Social Security contributions, already worth about 15% of income) meet the required 15%, so the full 0.75 coefficient applies. It does not include the sale of goods (0.15 coefficient), organised accounting, the minimum and maximum Social Security contribution-base limits, VAT (IVA), dependants, tax credits, IRS Jovem or the minimum-existence rule. It is an educational estimate to see the order of magnitude, not your final assessment.

Worked example

Take €30,000 billed in a year for services. The Social Security relevant income is 70%, €21,000, and the contribution is 21.4% of that: €4,494 a year (≈ €375/month). For IRS, the simplified regime taxes 75%, €22,500, on which the general brackets produce a tax of about €3,946. Together, around €21,560 net is left for the year, or roughly €1,797/month. In the first year of activity, with the Social Security exemption, you would keep more: only IRS would be deducted.

Frequently asked questions

How much Social Security do I pay on recibos verdes?
The rate is 21.4%, but it does not apply to everything you bill: it applies to the “relevant income”, which for services is 70% of what you receive. In practice it comes to about 15% of gross income. The base is assessed quarterly from the income of the previous three months.
How is IRS calculated under the simplified regime?
Under the simplified regime, IRS is not charged on all your income. A coefficient presumes your expenses: 0.75 for professional services (Art. 151). So 75% of what you bill is taxed, and the general progressive IRS brackets (the same rates an employee pays) apply to that amount.
Am I exempt from Social Security in the first year?
If you are starting an activity for the first time, you are generally exempt from the Social Security contribution for the first 12 months. IRS still applies normally. Tick the “first year” option in the calculator to see the effect of that exemption on your net income.
What is the 0.75 coefficient?
It is the share of income the simplified regime treats as taxable for professional services. The other 25% is presumed to be expenses. To keep the coefficient, the law requires you to justify expenses equal to 15% of gross income, but your mandatory Social Security contributions (≈ 15% of income) already count toward that minimum.
Does the calculator include VAT?
No. The VAT (IVA) you charge clients is not your income: it is handed over to the State. This calculator estimates only the two charges on your income (Social Security and IRS) and what you keep net. VAT rules (the Art. 53 exemption, the normal regime) are a separate topic.
Are the figures exact?
The 21.4% rate, the 70% factor, the 0.75 coefficient and the IRS brackets are official and in force for 2026. The result is an educational estimate of the simplified regime for services under individual taxation; it does not replace your IRS return or your Social Security account, and it does not cover dependants, tax credits, IRS Jovem, VAT or the minimum/maximum contribution-base limits. Always check Segurança Social Direta and your assessment note.

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Author: Thorben Rasmus Idel · Reviewed by: Nahar Geva · Last reviewed: 2026-06-02