If you wish to become a freelancer (Independent Entrepreneur) in Portugal being foreigners, you should be in Portugal on a valid legal visa, or maybe you’re exempt from permit. It is eligible to become a freelancer after self-declaration(register) with Portuguese taxation & finance department.
For opening your commercial (work) activity as a freelancer (self-employed) you should have a responsible company or person who already active in tax department ‘shall take your tax responsibilities & declare to tax department that declaration duly prepared and attested by the notary before the approach to tax authorities (AT) of Portugal.
While beginning the operation, you should mention here the service of your business/work you are going to start, and a code of this activity shall be mentioned in your registration document.
A freelancer means you can work or do any small business activities without registration as a limited company. As an independent, made services provider agreement instead of an employment contract while selling your product or services.
Freelancer in Portugal is exempt from social contribution for a year also exempt from IVA (VAT) up to 10000 euro in 2019 & 12500 euro in 2020 sale/services in a year. Social contribution lowest as compare depended employee (work contract with company) is calculated 1/3 of your total wage as a base value to calculate 21.4% &it’s paid monthly/quarterly. Freelancer freely work anywhere with any legit company & person around the world. Freelancer allowed to work as an employee (as a depended on the worker) as well as permit to open or become shareholders Portuguese companies. By the multi jobs, freelancers can enhance their ITR (Income Tax Return), which helps them to bring your family members in Portugal or to get loans from banks.
The document of freelancer registration certificate issued by tax authority along-with others supporting documents as such Schengen visa, Portugal entry declaration with SEF, NIF (tax number), Junta (Address Registration proof), bank account, a response letter from sponsored company attested by a notary (Not required for EU/EEA persons), Passport. The SSN (segurança social department) NISS number issued on the same moments you’re requested.
Freelancers (self-employed) are considered active entrepreneurs in Portugal & are legally eligible to apply for a residency permit under Portuguese immigration article 89. The processing time to obtained residency in Portugal under the same law take 6-8 months’ there is no separate slot or time for self-employees.
Any time you wish to close the freelancer activity, visit Portugal tax authority department & request to close it irrespective of any of your outstanding tax liabilities.
The immigration law, as article 89 and paragraph 2 introduced 4th July 2007 “and Amendment 2012 and 2017. Residence permit for self-employment purposes shall only be granted to third-country nationals who have a legal identity or freelancer professional’s employment relation in Portugal and registered in the Social Security System in Portugal.
There are a few steps to obtained temporary residence under the same law.
Foreign citizens entering the country from another Member State by way of a border not subject to control shall be required to report this fact to SEF (Portugal Immigration department). The declaration of entry is mandatory for foreign citizen’s third-country nationals within three working days after the date of entry in Portugal. According to articles 14 &16 of act 23/2007 of 4th July and subsequent amendments. https://www.sef.pt/en/Documents/DeclarofEntry_EN.pdf (Government website)
Foreign citizen’s third-country nationals who entered Portugal by way of a border Subject to control. Foreign citizens who are residents or visa holders authorized to stay in the country for more than six months. Foreign citizens who immediately after entering the country, stay in hotels or in another kind of accommodation units which submit accommodation forms to SEF; Foreign citizens who are covered by the EU legal framework or equivalent arrangements.
NIF number a unique ID in Portugal which is issued by Finance & taxation department for correspondent not only taxpayers also related to contracts, opening bank accounts, sale, and purchase, to obtain any registration & resident status among others.
To received NIF number, you have to be in the Finance department via physical or power of attorney representative with a valid ID document (Citizen's Card or Passport), declaration of the Fiscal Representative. NIF issued at the moment you request it, through a standard report stating the period during which you receive your final tax Payer's Card
The Junta de freguesia is the executive body of each municipality in Portugal deliver Function for legislation of address confirmation after the requested with valid local proof of accommodation or reference behalf of two citizens. The correspondent address is obligatory (documentary proof) to receive later form public and Private Institutions in Portugal
To open/formation Company in Portugal takes care of applicant should be in Portugal or hire legal representative holds power of attorney. Compliance of documents as such Passport, prepare an article of association, legal office space for registration or virtual office space.
To open a bank account and declare to tax and financial institute within 15 days after the formation of the company in Portugal. Type of company depends on the nature of business and common companies in Portugal uni pal and LDA
To the establishment with 1 euro or 5000 euro as paid off the capital of the identity. All the shareholders must bring a contribution to the capital, and their liability is limited to that contribution. The management assured by a director appointed by the general meeting of the shareholders, the supreme authority in the Portuguese LDA.
Freelances and independent professional also liable to the declare the nature of work and yearly turnover to competent tax authorities of Portugal.
One of the mandatory steps to have a Social Security number for any expatriate/employee/who wants to work in Portugal. The social security number issued by Segurança Social Institute
To apply for and obtain the Portuguese NISS social security number, you must present a copy of the employment contract certified by the hiring company. If the intention is all ready to hire a foreign citizen, the contracting firm can issue a promise contract. Freelancers and self employers can request a social security number without job offers.
The competent authority issue number within 90days after required of application for worker admission with the social department in Portugal.
The employment contract in Portugal legislated under Portuguese labor law (articles 273– 275). The minimum working age is 16 years from the age of 18, and a person can obtain an employment contract without completing school. There are several types of employment contracts. In 2018 the government increased the Portuguese monthly minimum wage from €557 to €580. By the end of the parliament in 2019, the government has pledged to raise Portugal's minimum wage beyond €600 for the first time). The tax obligation consists of employer and 2employee includes income tax and social security deductions from the salary or paid by the employer.
Employer (Company) pays 23.75% ➢Employee (worker) Pay 11.00% ➢Both calculated 34.75% in gross salary.
The standard VAT rate in Portugal is 23%.its obligatory on sales of goods or services. Rules- based on regulations drawn up by the European Union.
Application submitted through the electronic platform (SAPA Portal) and the application is submitted personally on a standard form signed by the applicant or his/her legal representative along with supporting documents as under Passport or any other valid travel document. Evidence of regular entry in Portuguese territory as such legal entry. Proof of sufficient means of subsistence (income or funds). Extract from the criminal record from the country of origin. Extract from the illegal file from the state of residence for more than one year. Evidence that the applicant has adequate accommodation. (Junta) Confirmation of having registered with the Social Security, except in the case of a promised employment contractor registration Certificate Of Portuguese Company. Proof of registration in the tax authority, tax, and salary confirmation. Contract of employment or document issued under article 89, paragraph 2, subparagraph a) of Lawn. o 23/2007 of 4th July; or promised work.
After submission of application, the assessment undergone by SEF further provides the user the possibility to make the appointment for the SEF Bureau in SAPA Portal. The user is allowed to select place, date, and time of his/her convenience
There are several types of companies in Portugal but most common and reasonable companies in Portugal are under:
Individual Company (UNIPAL)
Private Limited Liability Company (LDA.)
As rule these companies are incorporated by one for (UNIPAL) two or more for (LDA) shareholders. The paid of capital euro 1 or more can be paid until end of the first years of incorporate. In order to formation one of the shareholders to be in Portugal or power of attorney holder reprehensive creates online.
The creation of company at the moments requested to office of Institute of Registries and Notaries. The company must be active in taxation and financial department within 15 days from the moment of formation. Business account obligatory with any private and public financial institute as limited period.
.14.5% to 48%
Further to setup in Portugal market analysis and existing business opportunisms we offer on demands of costumers.
Yes, anyone arriving in Portugal on Schengen visa, obtaining legal entry from SEF, NIF (account number from finance department), and having a bank account is eligible to register with the finance department as a freelancer (self-employed)
No,you should find a company or person for your responsibility who shall give your guarantee to the tax department that guarantee later duly prepared and attested by the notary.
No,while opening the activity, you should mention here the activity of your business/work you are going to start, and a code of this activity shall be mention in your registration document.
A freelancer means you can work or do any small business activates without registration as a limited company as an independent, made services provider agreement instead of an employment contract while selling your product or services. It is also called Recebo Verde.
Freelancer in Portugal is exempt from social contribution for a year. In case wish to Social contribution lowest as compare depended employee (work contract with company) is calculated 1/3 of your total wage as a base value to calculate 21.4% & it paid monthly/quarterly.
Freelancers exempt from IVA (VAT) up to 10000 euro in 2019 & 12500 euro in 2020 sale/services in a year.
Freelancers freely work anywhere with any legit company & person around the world. Freelancer allowed working as an employee (as a depended on the worker) and permitted to open or become shareholders Portuguese & overseas companies.
It is paid monthly/quarterly” Recebo Verde (Invoice of the work done during the month) is prepared every month consolidated or as per your work and based on your total income, the tax is calculated subject to the exemption amount.
Yes, with the document of freelancer registration certificate issued by tax authority along-with others supporting documents as such Schengen visa, Portugal entry declaration with SEF, NIF (tax number), Junta (Address Registration proof), bank account, a response letter from sponsored company attested by a notary (Not required for EU/EEA persons), Passport. The SSN (segurança social department) NISS number issued on the same moments you’re requested.
The SSN (segurança social department) NISS number issued on the same moments you’re requested subject to needful documents.
Yes ,Freelancers (self-employed) are considered active entrepreneurs in Portugal and are legally eligible for a residency permit under Portuguese immigration article 89. The processing time to obtained residency in Portugal under the same law take 6-8 months’ there is no separate slot or time for self employees.
Yes,Recebo Verde and social security, tax declaration (Pagamento) can be prepared himself, but hiring an accountant his much better to keep accounting by law.
Processing time to get residence permit under article 89 is approx. 8 -12 months.
Yes, your family can accompany or call them once you get your residence status in Portugal.
Yes, any time you wish to close the freelancer activity, for closing, visit the finance/tax Office and request to close it irrespective of any of your outstanding tax Liabilities.