Portugal Simplified regime (self-employed) tax calculator 2026
Under Portugal's 2026 simplified regime, only a share of your turnover is taxed: a 0.75 coefficient for professional services, 0.35 for other services and 0.15 for goods. That base then runs through progressive IRS bands from 12.5% (up to €8,342) to 48% (over €86,634). Social Security adds 21.4% on 70% of income.
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Result
Portugal Simplified regime (self-employed) tax rates 2026
| Band or item | Rate |
|---|---|
| Up to €8,342 | 12.5% |
| €8,342 to €12,587 | 15.7% |
| €12,587 to €17,838 | 21.2% |
| €17,838 to €23,089 | 24.1% |
| €23,089 to €29,397 | 31.1% |
| €29,397 to €43,090 | 34.9% |
| €43,090 to €46,566 | 43.1% |
| €46,566 to €86,634 | 44.6% |
| Over €86,634 | 48% |
Source: www.pwc.pt
How is tax calculated under the simplified regime?
The simplified regime (regime simplificado) skips itemised expenses. Instead, your taxable income is your gross revenue multiplied by a fixed coefficient that presumes your costs:
- 0.75 for professional services listed in Article 151 (consultants, IT, designers, most freelancers);
- 0.35 for other services (for example hospitality or unlisted activities);
- 0.15 for the sale of goods and certain products.
So a service freelancer earning €40,000 has a taxable base of €40,000 × 0.75 = €30,000. The remaining 25% is treated as deemed expenses and is not taxed. In your first year of activity the applicable coefficient is reduced by 50%, roughly halving your taxable base for that year.
The 2026 IRS progressive bands
The coefficient-based income is added to your other income and taxed at the progressive IRS rates for 2026:
- up to €8,342: 12.5%
- €8,342 to €12,587: 15.7%
- €12,587 to €17,838: 21.2%
- €17,838 to €23,089: 24.1%
- €23,089 to €29,397: 31.1%
- €29,397 to €43,090: 34.9%
- €43,090 to €46,566: 43.1%
- €46,566 to €86,634: 44.6%
- over €86,634: 48%
Each band applies only to the slice of income that falls within it, so your marginal rate is higher than your effective rate.
Social Security contributions
Self-employed workers pay Social Security (Segurana Social) at 21.4%. The contribution is not charged on your full turnover: the relevant income base is 70% of service income, so the effective charge is 21.4% applied to that reduced base. On €40,000 of service revenue, the base is €28,000 and the annual contribution is about €5,992. Contributions you pay are deductible, easing your IRS bill.
A worked example
Take a listed-service freelancer with €40,000 of 2026 revenue. Taxable base for IRS is €40,000 × 0.75 = €30,000. Applying the bands slice by slice gives roughly €6,260 of IRS. Social Security is 21.4% on 70% of €40,000 (€28,000), or about €5,992. Combined, that is close to €12,252, an effective burden near 30.6% of turnover. Because 25% of revenue is exempt as deemed expenses, the simplified regime is often attractive for freelancers whose real costs are low.
Frequently asked questions
How much tax does a self-employed worker pay in Portugal in 2026?
Under the simplified regime, only part of revenue is taxable (0.75 for professional services), then IRS rates run from 12.5% up to 48%, plus Social Security at 21.4%. A service freelancer on €40,000 pays roughly €6,260 IRS and €5,992 Social Security.
What are the simplified regime coefficients?
Your taxable income equals revenue times a coefficient: 0.75 for professional services (Article 151), 0.35 for other services, and 0.15 for the sale of goods. The rest is treated as presumed expenses and is not taxed.
What is the Social Security rate for the self-employed in Portugal?
The rate is 21.4%, applied to 70% of your relevant service income rather than the full amount. On €28,000 of base income that is about €5,992 a year, and paid contributions are deductible.
What are the 2026 IRS income tax bands?
There are nine bands: 12.5% up to €8,342, then 15.7%, 21.2%, 24.1%, 31.1%, 34.9%, 43.1% and 44.6%, reaching 48% on income above €86,634. Each rate applies only to income within that band.
Is there a first-year discount in the simplified regime?
Yes. In your first year of activity the applicable coefficient is reduced by 50%, so a 0.75 professional-services coefficient effectively drops to 0.375, roughly halving your taxable base for that year.
How is the taxable income calculated?
Multiply gross revenue by the relevant coefficient. For a professional-services freelancer earning €40,000, taxable income is €40,000 × 0.75 = €30,000, which is then taxed at the progressive IRS bands.
Official sources
- Autoridade Tributária e Aduaneira (AT) — Corporate & personal income tax