The freelancer industry in Portugal has experienced tremendous growth over the past decade; and it shows no sign of slowing down anytime soon. Whether you’re looking to branch out from your 9-to-5 or expand your business to reach more customers, we can help you to become a successful freelancer in Portugal. In this guide, we’ll outline everything you need to know about freelancing in Portugal – from relevant tax obligations to the main benefits of the role – and we will share with you the recorded content from our webinar about how to become a successful freelancer in Portugal; so that you can hear our expertise talk about why the role is a great choice to make.
The Freelancer Role
A freelancer in Portugal can cover many different areas; such as being a digital nomad, sole-trader or independent contractor as known in the UK and USA, as well as an independent worker who is self-employed.
These individuals have the potential to work for a number of different companies, as a private contractor – they are not on the employment records or the businesses they carry out work for. Freelancers tend to be a one-man (or woman) company, selling their services or goods to other entities. Being a freelancer means being flexible, as you have the ability to assist various companies & provide varying service packages.
At the beginning of September, we hosted a webinar about how to become a successful freelancer in Portugal and our attendees got to hear from our expert team on the subject. Even if you didn’t attend the webinar, don’t worry, we recorded it so you can still enjoy it now by following this link.
The Registration Process
Getting registered as a freelancer is a steady process, and there are four important steps you need to take:
- Tax Authority Login
- Bank Account
- Email Address
After completing the first four steps to become a successful freelancer in Portugal, you will need to submit more information and documentation to carry on with the process. Our administration team is always on hand to ensure all the pieces come together, making the registration process easier for you. We will help you complete the full registration process without the need to contact another company, making the setup easier for you. Contact us today for assistance.
As a freelancer, you must submit your VAT return every quarter if you fall under the normal tax regime. By submitting your VAT return, you are voting on whether you should be eligible for any VAT refunds. In Portugal, if you earn less than €12,500 and sell products within Portugal, you are exempt from submitting a VAT return.
When you start your second year as a freelancer, then you will be required to submit Social Security declarations every quarter. Each quarter, Social Security will estimate how much you should contribute.
The complexities of taxes in Portugal are numerous and because of that, to become a successful freelancer, we recommend making use of our services to help you make the most out of the tax obligations in Portugal; feel free to contact us to start your successful career in Portugal.
The Portuguese Government are drawing people to Portugal with the Non-Habitual Residency program. If you work as a freelancer you could qualify for a tax rate of only 20% depending on your area of expertise, meaning you can earn a lot more and pay less in taxes. To allow Portugal to grow, the Portuguese government thanks foreign investors for investing in their country and encourages others to work as freelancers in Portugal. In light of the fact that there are currently more than 100,000 non-habitual residents, the program must succeed; taxes have been reduced and tax payers are enjoying the savings.
Freelancers in Portugal have two options for accounting services:
- Simplified regime
- Organised accountancy
We break down both of these accounting services for you in our free webinar on how to become a successful freelancer in Portugal. Download for free here, and listen to our team explain each of them. Alternatively, you can schedule a free 15-minute consultation with our team by contacting us today.
Benefits to the Role
Let’s take a look at some of the many benefits of becoming a successful freelancer in Portugal:
- Becoming your own boss!
- Within the first 12 months of becoming a freelancer, you won’t have to make any social security contributions.
- As a freelancer you will get a reduced rate on tax in years one and two.
- If you fall under the high value activity, you could only be taxed 20% on that activity.
- In addition, you get to live in Portugal! – find out why Portugal is THE best place to work as a freelancer in our other article
Here’s what Tamara had to say about our team after we helped her start as a freelancer in Portugal:
“I spoke with other companies and it was all very much about financial advice – they were not down to earth or easy to understand; I’m a novice at accounting, that’s why I wanted to consult someone else.
RHJ Group made everything so easy for me. They set me up as a Freelancer in Portugal, got my NHR, went to the tax office and completed the right forms – I don’t feel like another number at a company, I’m part of something.”
How RHJ Accountants Can Help
We recognise more than ever that individuals and businesses from the UK and other countries may be globally mobile. We aim to make you aware of the tax-efficient opportunities, available tax relief and structure finances for life at home and abroad.
Our international team of specialists operate from offices in the UK and Portugal. We work together synergistically to provide tax efficient solutions to our clients to help them grow their business whilst keeping tax liabilities to a minimum.
Get in touch with us today to find out more, or to make use of our services.