Freelancer in Portugal

Before registration as a freelances in Portugal:

• 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.

What is the meaning off reelancing in Portugal?

• 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.

While opening self-employment activities in 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.

Benefits of becoming a freelancer in Portugal:

• 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.

How to apply (obtain) social security number (NISS) as freelancers:

• 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.

How to apply for a residency permit as freelancers In Portugal:

• 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.

How to close your freelancer activities in Portugal

• 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.

Without Residence Visa

• 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.

No further requirements of declaration

• 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.

Step 1. Legal entry declares:

• 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)

Step 2. NIF Number (tax Identity):

• 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

Step 3. Accommodation confirmation letter:

• 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

Step 4 A. Social Security Number

• 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.

Step 4. Registration of Company in Portugal or register as Freelances

• 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.

Step 5. Employment contract and taxes

• 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.

Step 6. SEF ENTRY (request for residency permit):

• 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.

Step 7. Visiting SEF for fingerprints:

• 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.

Documents requirements:

• Passport
• Address proof of share holders and board of directors
• Virtual or physical office space
• Memorandum of association
• Translated documents in Portuguese or English
• 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.

Taxation in Portugal

• Income tax for residents
• Income tax for Non residents 25%. 􏰀 Salaries 11% +23.75%
• VAT 23%
• .14.5% to 48%

Services for registration:

• Virtual office space
• Prepare MOU
• Company registration
• Translation and Notary
• Tax management services
• Business bank account
• Social number registration
• Contract drafting
• Further to setup in Portugal market analysis and existing business opportunisms we offer on demands of costumers.

Can I work in Portugal as a freelancer (self-employed)?

• 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)

Being a foreigner, can I open my self-employment activities myself with tax authorities?

• 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.

Without mention activities code, can I start my activities (work) in Portugal?

• 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.

How much social security contribution has to pay each month while active as freelancers in Portugal?

• 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.

What means freelancers in Portugal?

• 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.

How much (IVA) VAT has to pay each month while active as freelancers in Portugal?

• Freelancers exempt from IVA (VAT) up to 10000 euro in 2019 & 12500 euro in 2020 sale/services in a year.

If I am an active freelancer in Portugal, can I join others’ jobs/businesses during independent activists?

• 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.

Can I apply for social security (NISS) number as a freelancer in Portugal?

• 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.

When do I need to pay taxes as freelancers in Portugal?

• 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.

What documents need to apply for a residence permit under article 89 as a self employer?

• • Schengen visa” maybe you are exempt from visa and permit.
• • Entry declaring proof on Portugal territory
• • NIF (Portugal personal tax number)
• • Home address registration certificate (Junta)
• • Bank account
• • Proof of open activities in tax authorities
• • SSN Social security Number (NISS)
• • Police Clarence certificate from your native country or residence country Social contribution proof
• • No debits declaration from social and tax departments
• • May immigration officer ask for additional documents
• • Proof of contract and agreement for services and products sale

Can I manage my accounting and tax work by myself?

• 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.

Can I call my family to Portugal if I am an active freelancer in Portugal?

• Yes, your family can accompany or call them once you get your residence status in Portugal.

What is processing time to obtain residency permits under freelancer activities?

• Processing time to get residence permit under article 89 is approx. 8 -12 months.

Can I close my freelancer activities at any time?

• 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.