How much do I take home on recibos verdes (self-employed invoices)?
| Segurança Social (social security) | − €299.60 |
| IRS (income tax, monthly average) | − €217.62 |
| Withheld by clients (23%) | − €460.00 |
| Reaches your bank account each month | €1,240.40 |
When your annual IRS is settled you should get back about €2,909.
Mainland Portugal: income tax is lower in the Azores and Madeira · Figures checked in October 2026 · See assumptions ↓
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How we calculated it
Segurança Social is 21.4% of 70% of what you invoice. IRS uses the 2026 tax brackets on 75% of what you invoice in the year, minus €250 of general expenses.
It does not include VAT or IRS Jovem (youth tax break). It already includes the mínimo de existência (tax-free minimum). 2026 IRS rates may still go down; this page will be updated.
Example: you invoice €1,500 a month and your clients withhold 23%. Segurança Social takes €224.70, which is 21.4% of €1,050. From your 3rd year, IRS averages €137.73 a month and you keep €1,137.57. In your 1st year of activity, with no salary or pension, the income taxed by IRS is cut in half: you keep €1,225.82 a month and the annual settlement gives back about €3,546.
The 50% and 25% reduction in the 1st and 2nd year only applies if you have no salary or pension in those years.
The 2026 IRS rates may still be cut with effect from January (decree-law approved by the Government, awaiting publication). This page uses the rates currently in force.
In practice, Segurança Social is declared every 3 months and you can adjust the base by up to 25% up or down.
Figures checked in October 2026 · Sources: CIRS, art. 31.º, Portal das Finanças, Segurança Social
Estimate: An approximate result that depends on assumptions. Confirm important figures with the relevant authority.
Frequently asked questions
How much Segurança Social do I pay on recibos verdes?
21.4% on 70% of what you invoice, with a minimum of €20 a month. In your first 12 months of activity you may be exempt.
What is the withholding tax on recibos verdes in 2026?
23% for activities in the article 151 table, when the client is required to withhold. It is an advance on your IRS (income tax), settled in your annual return.
How much can I invoice without charging VAT (IVA)?
Up to €15,000 a year, under the exemption in article 53 of the VAT Code (Código do IVA). If you go above €18,750, which is 25% over the limit, you must charge VAT from the invoice that crosses that amount.
Can I issue recibos verdes without withholding tax?
Yes, if you expect to earn less than €15,000 in the year. You select the withholding exemption under article 101-B of the IRS Code on each receipt. Once you go above that amount, the exemption no longer applies.
When do I pay Segurança Social on recibos verdes?
The quarterly declaration is due by the end of January, April, July and October. Contributions are paid every month, between the 10th and the 20th of the month after the one they cover.