# Self-employment



## leojez

Hello. I've recently moved to Portugal from the uk and now have a residency cert and fiscal number. I plan on working as self-employed doing website design work and English teaching. I'm getting a bit confused with the registration and social security system. Here are my specific qus - many thanks in advance!!

1. I heard I have to register as self-employed at my local Financas ... and get a green receipt book (recibos verdes) - is this correct? I don't really know what this receipt book is or how it works. Is it just to log money received for filing my taxes? I also heard that the first 10,000 euros are tax free ... is this correct? After 10,000 euros what is the tax rate?

2. Social security - this sounds very complex. I read here that there are different rates ... I want to keep payments to a minimum. How much is required, where do I register and how do I pay?

Sorry about all the questions! Any help would be greatly appreciated!

Thanks,
Jeremy


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## Little Missy

leojez said:


> Hello. I've recently moved to Portugal from the uk and now have a residency cert and fiscal number. I plan on working as self-employed doing website design work and English teaching. I'm getting a bit confused with the registration and social security system. Here are my specific qus - many thanks in advance!!
> 
> 1. I heard I have to register as self-employed at my local Financas ... and get a green receipt book (recibos verdes) - is this correct? I don't really know what this receipt book is or how it works. Is it just to log money received for filing my taxes? I also heard that the first 10,000 euros are tax free ... is this correct? After 10,000 euros what is the tax rate?
> 
> 2. Social security - this sounds very complex. I read here that there are different rates ... I want to keep payments to a minimum. How much is required, where do I register and how do I pay?
> 
> Sorry about all the questions! Any help would be greatly appreciated!
> 
> Thanks,
> Jeremy


Hello Jeremy
Good luck with your venture. Its really quite simple to become selfemployed in Portugal, although unlike the UK, you have to decide on things in advance rather than 'see how things go'.
Step 1 register at Financas. Tell them what you intend to do so that you are registered in the correct category, or more than one category in your case. To start with, make sure you tell them you will turnover less than 9,500 in the first year of trading. Bear in mind the fiscal year here is the calendar year, so if you are starting part way through the year give the figure pro-rata. This will mean that you are exempt from IVA in your first fiscal year. This keeps it as simple as possible. If you do earn more than the IVA threshhold- just under 10K-, you will need to make an alteration to your registration in the January following when you started trading.
The receipt book is to record what you charge people so that they get receipts and you have a record of your turnover to declare on your tax return (on Anexo B).
The idea that the first 10k is exempt from tax is a common misconception. This probably relates to the IVA threshhold. 
For tax purposes, you will declare your entire income (whereever it comes from). As long as you register for the 'Simplified Regime' of accounting (recommended for service providers with low overheads), 30% of your sole trader income will be exempt for tax purposes. This is to allow for your costs, so you do not need to keep a load of paperwork detailing expenses (unless you move into the IVA regime when you will need them to reclaim IVA).
Social Security - if you're on a very low turnover, you may be able to apply for exemption. The 'normal' minimum is around euros150 per month. You get your first year of trading 'free', as the payments are only due from the 13th month.
Hope this helps!
Little Missy


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## fritzie

hi, i have a couple ?s as the OPs situation is similar to mine (self employed internet professional) and i'm considering living in portugal.

at what sort of residency classification must a foreigner pay social security? If I am in portugal on a live/work visa but not yet at a permanent residency, must i pay social sec? if so, then when i leave portugal, do i get this money back?

thanks!


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## Little Missy

fritzie said:


> hi, i have a couple ?s as the OPs situation is similar to mine (self employed internet professional) and i'm considering living in portugal.
> 
> at what sort of residency classification must a foreigner pay social security? If I am in portugal on a live/work visa but not yet at a permanent residency, must i pay social sec? if so, then when i leave portugal, do i get this money back?
> 
> thanks!


Hello Fritzie,
If you are talking about needing a visa, sounds like you're from outside the EU. Not sure what the situation would be for you as I've only had to find out about things from an EU perspective. Sorry, can't help.
Little Missy


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## fritzie

That is correct, I'm not from the EU and would need a visa.


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## deburto

leojez said:


> Hello. I've recently moved to Portugal from the uk and now have a residency cert and fiscal number. I plan on working as self-employed doing website design work and English teaching. I'm getting a bit confused with the registration and social security system. Here are my specific qus - many thanks in advance!!
> 
> 1. I heard I have to register as self-employed at my local Financas ... and get a green receipt book (recibos verdes) - is this correct? I don't really know what this receipt book is or how it works. Is it just to log money received for filing my taxes? I also heard that the first 10,000 euros are tax free ... is this correct? After 10,000 euros what is the tax rate?
> 
> 2. Social security - this sounds very complex. I read here that there are different rates ... I want to keep payments to a minimum. How much is required, where do I register and how do I pay?
> 
> Sorry about all the questions! Any help would be greatly appreciated!
> 
> Thanks,
> Jeremy


Hi jerry, 
we are also making the move, and fingers crossed starting r own business, which i will need a good web page for, what is your average cost for this
thanks 
debby


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