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Simplified or Organised?

Simplified regime or organised accounting: see which taxes your Portuguese self-employed income less.

Annual figures, net of VAT. The accountant cost counts only under organised accounting, because that is the only regime where it is mandatory.

Tax under the simplified regime
€6,057.95
Tax under organised accounting
€7,449.45

On these numbers, the simplified regime pays less tax. Difference: €1,391.50 a year.

Expenses at which organised accounting wins€5,400.00
The same line as a share of gross13.5 %
Coefficient applied (article 31(1))0.75
Social security for the year€5,992.00
Taxable income, simplified regime€29,420.91
Taxable profit, organised accounting€33,408.00
Article 31(13) add-back€1,412.91
Effective rate on gross, simplified15.1 %
Effective rate on gross, organised18.6 %

Article 31(13) requires €6,000.00 to be justified (15% of gross). The offset in paragraph (a) covers €4,587.09 and your expenses cover the rest, so €1,412.91 is added back to taxable income.

Not included here is the autonomous taxation of article 73.º, which exists ONLY under organised accounting: 50% on undocumented expenses and 10% or 20% on representation expenses and cars, depending on whether the acquisition cost is below or at/above €30,000.

The tax is computed on category-B income alone, using the article 68.º brackets. Tax credits, joint filing and any other income apply equally to both regimes and cancel out of the comparison.

The option for organised accounting is made in the start-of-activity return or by 31 March through a declaração de alterações (article 28(4)), and it holds until you change it (paragraph 5). There is no three-year minimum.

Two ways of measuring the same income

Article 28(1) of the Portuguese income tax code says that business and professional income «faz-se: a) Com base na aplicação das regras decorrentes do regime simplificado; b) Com base na contabilidade». Two routes to the same question, how much of what you invoiced is taxable income, and they give different answers. Under the simplified regime the law presumes your expenses: it applies a coefficient to what you invoiced and the rest disappears, whether you had expenses or not. Under organised accounting nothing is presumed: article 32.º orders «as regras estabelecidas no Código do IRC» to be applied, so a real profit is computed, revenue less costs, and that profit is what you pay tax on. Someone with few expenses gains from the presumption. Someone with many gains from reality. This page tells you where the line sits on your numbers.

The coefficient, and which one is yours

Article 31(1) fixes the coefficient by the nature of the activity and the choice changes everything. Paragraph (b) gives 0.75 to «rendimentos das atividades profissionais especificamente previstas na tabela a que se refere o artigo 151.º», which covers the great majority of liberal professions with their own activity code, from doctors and lawyers to designers and developers. Paragraph (c) gives 0.35 to «rendimentos de prestações de serviços não previstos nas alíneas anteriores», i.e. the services that fall under the generic "other service providers" code. Paragraph (a) gives 0.15 to sales of goods and to restaurant and hotel activities, presuming 85% costs, which makes sense for anyone buying to resell. A 0.75 coefficient means 25% of what you invoiced is never taxed; a 0.35 one means 65%. That is why the same turnover can produce very different taxable incomes.

The finding: the line is 15% of what you invoiced

This is the number the page exists to give, and it comes out of a two-line calculation. Under the simplified regime with the 0.75 coefficient, the law writes off 25% of gross by presumption, and article 31(2) adds a deduction: the mandatory social-security contributions «na parte em que excedam 10 % dos rendimentos brutos». Under organised accounting you deduct the expenses you can document plus ALL of the contributions. Put the two sides side by side: on the simplified side the relief is 0.25 × gross plus (contributions − 0.10 × gross); on the organised side it is expenses plus contributions. The contributions appear on both sides and cancel, and what is left is expenses = 0.25 − 0.10 = 0.15 of gross. So: below 15% of what you invoiced in documented expenses the simplified regime pays less tax; above it, organised accounting does. And the social-security rate does not enter the answer, which is counter-intuitive and is what makes the number easy to remember. The accountant's fee, on the other hand, pushes the line down by its own amount, because it is a cost that exists only on the organised side and is itself deductible.

The 31(13) add-back, and why it cannot bite below €30,580.60

The 25% presumption is not unconditional, and this is where almost all the available information stops. Article 31(13) says that «a dedução ao rendimento que decorre da aplicação dos coeficientes previstos nas alíneas b) e c) do n.º 1 está parcialmente condicionada à verificação de despesas e encargos efetivamente suportados, acrescendo ao rendimento tributável apurado nos termos dos números anteriores a diferença positiva entre 15 % dos rendimentos brutos das prestações de serviços previstas naquelas alíneas e o somatório» of six amounts. Note the first of them, (a): «montante de dedução específica previsto na alínea a) do n.º 1 do artigo 25.º ou, quando superior, os montantes comprovadamente suportados com contribuições obrigatórias para regimes de proteção social […] que não sejam dedutíveis nos termos do n.º 2». Article 25(1)(a) is «8,54 vezes o valor do IAS», i.e. €4,587.09 in 2026, and it is not an expense: it is a deduction granted to everyone, with nothing to justify. So while 15% of your gross stays below that €4,587.09, the add-back is ZERO even if you do not hold a single invoice in your name. And €4,587.09 ÷ 0.15 is €30,580.60. Below that gross income the add-back is impossible.

What happens above that line, and it is surprising

Past €30,580.60, if your documented expenses do not grow at the same pace, the add-back starts eating the presumption. And when you do the algebra, it eats it WHOLE. Inside the add-back zone the simplified taxable income is 0.75 × gross, less the social security above the 10% floor, plus (0.15 × gross − offset (a) − expenses). Collect the terms and that simplifies to gross − social security − expenses − offset (a). Compare organised accounting, which is gross − social security − expenses − accountant: exactly the same shape. The two regimes differ only by the gap between offset (a) and what you pay your accountant. In other words, in that band the coefficient has stopped being a benefit and all that survives of it is offset (a). One important qualification, because it changes the size of the problem: offset (a) is not always the €4,587.09, it is the higher of that deduction and the contributions left outside paragraph 2, i.e. those falling at or below 10% of gross. Since a Portuguese freelancer pays 14.98% of gross in contributions, that slice is always exactly 10% of gross, so offset (a) becomes 0.10 × gross above €45,870.90. From there upwards the maximum add-back is no longer 15% of gross, it is 5%.

What is not in this calculation and still moves the decision

Three things, and none of them is small. THE FIRST is the autonomous taxation of article 73.º, which exists only under organised accounting: 50% on «as despesas não documentadas», and 10% or 20% on «os encargos dedutíveis relativos a despesas de representação e a viaturas ligeiras de passageiros ou mistas» depending on whether the acquisition cost is below €30,000 or at/above it, always for taxpayers «que possuam ou devam possuir contabilidade organizada». That means the same car costs you an extra 10% or 20% tax on its charges on the organised side and absolutely nothing on the simplified side. THE SECOND is the eligibility of each expense, which is where the real work lives: on the simplified side paragraph 13 lists what counts and paragraph 14 orders only 25% of expenses «apenas parcialmente afetos à atividade empresarial e profissional» to be considered, while paragraph 15 requires them to be identified on the Portal das Finanças by the end of February of the following year; on the organised side the deductibility rules of the corporate tax code apply. THE THIRD is the rest of your return: this page computes the tax on category-B income alone, using the article 68.º brackets, because the tax credits, the joint-filing option and any other income apply identically on both sides and cancel out of the comparison.

How to switch regime, and the part almost everyone gets wrong

Article 28(2) puts you in the simplified regime when you «não [tenha] ultrapassado no período de tributação imediatamente anterior um montante anual ilíquido de rendimentos desta categoria de (euro) 200 000», and paragraph 3 lets you «optar pela determinação dos rendimentos com base na contabilidade». Note the deadline in paragraph 4: the option is made «na declaração de início de atividade» or «até ao fim do mês de março do ano em que pretendem alterar a forma de determinação do rendimento, mediante a apresentação de declaração de alterações». Miss March and you miss the year. And now the part that circulates wrong: a lot of published information says the option for organised accounting locks you in for three years. Paragraph 5 says otherwise: «a opção referida no n.º 3 mantém-se válida até que o sujeito passivo proceda à entrega de declaração de alterações, a qual produz efeitos a partir do próprio ano em que é entregue, desde que seja efetuada até ao final do mês de março». There is no minimum period. A second note, in the opposite direction: crossing €200,000 once does not automatically throw you out of the simplified regime. Paragraph 6 says the regime «cessa apenas quando o montante a que se refere o n.º 2 seja ultrapassado em dois períodos de tributação consecutivos ou, quando o seja num único exercício, em montante superior a 25 %», i.e. above €250,000.

Worked example

A professional listed in the article 151.º table who invoiced €40,000 in the year, with no documented expenses, and who would pay €600 a year to a certified accountant. Social security is 21.4% on 70% of gross, i.e. €5,992. Under the SIMPLIFIED REGIME the 0.75 coefficient leaves €30,000, article 31(2) deducts the contributions above 10% of gross (5,992 − 4,000 = €1,992) and article 31(13) adds €1,412.91 back, because 15% of €40,000 is €6,000 and offset (a) only covers €4,587.09: taxable income lands at €29,420.91. Under ORGANISED ACCOUNTING the profit is 40,000 − 5,992 − 600 = €33,408. The simplified regime pays €1,391.50 less tax. And the dividing line sits at €5,400 of documented expenses, i.e. 13.5% of gross: the general 15% less the €600 the accountant costs. With €4,900 of expenses the simplified regime still wins, with €5,400 both pay exactly the same, and with €5,900 organised accounting moves ahead.

Frequently asked questions

At what point does organised accounting pay off?
From 15% of what you invoiced in expenses you can document, less what you pay your accountant. On the 0.75 coefficient the simplified regime gives you a 25% presumed deduction and, under article 31(2), the social security above 10% of gross; organised accounting gives you real expenses plus the whole of the social security. The contributions appear on both sides and cancel, leaving 0.25 − 0.10 = 0.15. With €40,000 of turnover and a €600 accountant, the line sits at €5,400. On the 0.35 coefficient the line is far higher, because the presumption is already 65%.
What is the 15% add-back of article 31(13)?
It is the part of the presumed deduction that the law conditions on real expenses. Paragraph 13 adds to taxable income «a diferença positiva entre 15 % dos rendimentos brutos das prestações de serviços» and a list of offsets, the first of which is the specific deduction of article 25(1)(a), 8.54 × IAS = €4,587.09 in 2026. Since that deduction is granted and needs no justification, the add-back is zero while 15% of your gross stays below it, i.e. up to €30,580.60 of turnover. Above that you need invoices in your name, reported to the tax authority, to avoid it.
Which coefficient applies to me?
It depends on your activity code. Article 31(1)(b) gives 0.75 to «atividades profissionais especificamente previstas na tabela a que se refere o artigo 151.º», which is the list of liberal professions with their own code. Paragraph (c) gives 0.35 to services not on that table, typically anyone who registered under the generic "other service providers" code. Paragraph (a) gives 0.15 to sales of goods and to restaurants and hotels. The gap between 0.75 and 0.35 is large: on the same €40,000 of turnover, taxable income before the other adjustments is €30,000 in one case and €14,000 in the other.
Do I really need a certified accountant?
Under organised accounting, yes, and it is a cost to weigh in the decision: the accounts must be organised under commercial and tax law and signed by a contabilista certificado, which in practice means a monthly retainer. Under the simplified regime it is not mandatory, although plenty of people hire one anyway for the return and the deadlines. That is why this calculator asks for the annual accountant cost and adds it to deductible costs on the organised side only: being deductible, it lowers the tax, but it still leaves your pocket and it moves the dividing line down by its own amount.
Does choosing organised accounting lock me in for three years?
No, and that is out-of-date information that keeps circulating. Article 28(5) says that «a opção referida no n.º 3 mantém-se válida até que o sujeito passivo proceda à entrega de declaração de alterações, a qual produz efeitos a partir do próprio ano em que é entregue, desde que seja efetuada até ao final do mês de março». There is no minimum stay: it holds until you change it, and you can change it with effect in the same year if you file the declaração de alterações by 31 March. The deadline is the part not to miss, because after March the change only takes effect the following year.
If I cross €200,000 am I thrown out of the simplified regime?
Not necessarily. Article 28(2) puts you in the simplified regime if you did not exceed €200,000 «no período de tributação imediatamente anterior», but paragraph 6 is more generous than it looks: the regime «cessa apenas quando o montante a que se refere o n.º 2 seja ultrapassado em dois períodos de tributação consecutivos ou, quando o seja num único exercício, em montante superior a 25 %», i.e. above €250,000. A single year at €230,000 followed by a normal year does not force you to switch. And when it does, taxation under organised accounting begins «a partir do período de tributação seguinte».
Does the first year of activity change the calculation?
It changes it a lot, in favour of the simplified regime. Article 31(10) says that «os coeficientes previstos nas alíneas b), c) e f) do n.º 1 são reduzidos em 50 % e 25 % no período de tributação do início da atividade e no período de tributação seguinte, respetivamente, desde que, nesses períodos, o sujeito passivo não aufira rendimentos das categorias A ou H». A 0.75 coefficient becomes 0.375 in the first year and 0.5625 in the second. Mind the two conditions: you lose the reduction if you have salary or pension income in those years, and paragraph 11 denies it to anyone who ceased activity less than five years ago. The 31(13) add-back stays at 15% of GROSS, not of the coefficient, so it does not fall with it.
Is autonomous taxation part of this comparison?
It is not in the calculation, but it should be in your decision, which is why the page names it. Article 73.º taxes «as despesas não documentadas» autonomously at 50% and, in paragraph 2, charges on representation expenses and on passenger cars at 10% up to €30,000 of acquisition cost and 20% above that, excluding purely electric vehicles. And it does so only for taxpayers «que possuam ou devam possuir contabilidade organizada». It is an asymmetric cost: if your activity involves a car or significant representation expenses, organised accounting brings a tax the simplified regime does not even know about, and the 15% line moves in the simplified regime's favour.
Does this include VAT and social security?
Social security yes, VAT no. The contribution is derived from the statutory freelancer identity, 21.4% on a relevant income of 70% for services and 20% for sales of goods, and it enters both sides: on the simplified side through the partial deduction of article 31(2) and on the organised side as a fully deductible cost. Left out are the voluntary plus-or-minus 25% adjustment, the first-year exemption and the ceiling of 12 times the IAS, which live in the self-employed social-security calculator. The figures on this page are net of VAT: if you are inside the article 53.º exemption you charge no VAT at all, and if you are not, the VAT you charge is never your income.

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Author: Thorben Rasmus Idel · Reviewed by: Nahar Geva · Last reviewed: 2026-08-21