Quick Guide for Foreigners in Portugal:

Portugal: A Quick Guide for Foreigners

A freelancer is a self-employed professional who provides services to one or several companies without signing an employment contract with any of them. In Portugal, there are several types of contracts establishing a relationship between employer and employee, and among them, is the “green receipts” category (recibos verdes), which includes e self-employed workers. The green receipt is a document issued by self-employed workers, service providers, or freelancers who have the autonomy to perform the service contracted to them. Social benefits for this type of contract are very low, but in the first year of the green receipt there is no need to pay taxes.

1. Legal Requirements

  • Self-Employment Visa: Non-EU nationals can apply for a D2 visa, suited for independent professionals and entrepreneurs.

  • Residence Permit: Apply for a residence permit within Portugal at SEF (Serviço de Estrangeiros e Fronteiras).

  • NIF (Número de Identificação Fiscal): A tax identification number obtained at the Portuguese Tax Authority (AT).

  • VAT Registration (Número de Identificação Fiscal/IVA): Freelancers need to register for VAT when applicable.

2. Taxation and Social Security

  • Simplified Regime: Available for sole traders with turnover up to €200,000.

  • Social Security Contributions: Paid to Segurança Social, around 21.4% of income.

3. Support Services and Resources

  • Coworking Spaces: Examples include Second Home Lisbon, Avila Spaces, Impact Hub Lisbon.

  • Freelancer Associations: ACEP and APG (Portuguese Management Association).

  • Language Support: Camões Institute, municipal language courses.

4. Platforms for Finding Work

  • Job Portals: IEFP (Instituto do Emprego e Formação Profissional), Net-Empregos.

  • Freelancing Marketplaces: Zaask.pt, Freelancer.pt, international platforms like Upwork.

5. Cultural Considerations

  • Professionalism: Formal communication and qualifications matter.

  • Networking: Face-to-face networking and professional associations are valuable.

  • Invoicing: Freelancers must issue “faturas” (invoices) with tax identification.

For more detailed guidance, read the “How to Freelance Online” e-book