Portugal taxes as a freelancer / self employed consultant

Tax and legal
1

Hello,

I just did some calculations on income taxes and social security that would be due in PT as a freelancer / self employed, maybe someone is here and can confirm this (if you are already being taxed in PT you might know):

24000€ yearly salary
Simplified regime:
75% of 24K tax relevant: → 18000€ as tax base:
3845€ income tax due (tax brackets up to 28.5%)
+
Social security:
only 70% of 24000€ relevant for SS → 16800€ as base
21.4% SS rate for self employed = 3595€

BUT: self employed workers can decrase SS by 25%: 2696€ Social Security due

Sum of payments: 6541€

= 27.2% of 24000€

NHR ignored, 20% flat tax rate > 16% our tax rate

Sources:

https://www.pwc.pt/en/pwcinforfisco/tax-guide/2022/pit.html

https://www.expatica.com/…/self-employment-freelance…/

https://www.belionpartners.com/taxation-of-individual-income

https://www.icalculator.info/portugal.html

2

No one having any ideas? I would really appreciate some feedback!

3

What visa would you be going on? Are you EU or non EU?

Asking because non-EU residents can get a D7 visa, which enables you to get non-habitual resident tax status for 10 years. That means you’re taxed at a flat rate of 20%. There’s a bit on that here:

4

Unless you have someone who’s gonna host you in PT I can hardly image living on 1600 euro/m …

5

Minimum wage is less than half of that. Be considerate of your fellow countrymen