Anexo A (IRS): your salary on a freelancer's tax return
Got a salary and recibos verdes? Anexo A comes pre-filled, but two things trip everyone up: what retenção really is and the deduction you can't reuse.
Everything you need to know about invoicing, VAT and Social Security in Portugal.
The advance payment (pagamento por conta) is category B IRS paid upfront in 3 instalments: what it is, who pays, how it is calculated and how to reduce it.
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Got a salary and recibos verdes? Anexo A comes pre-filled, but two things trip everyone up: what retenção really is and the deduction you can't reuse.
Recibos verdes on the simplified regime? Anexo B looks like a maze of quadros, but for most people it's 3 or 4 fields. Here's which ones, in plain English.
You invoiced €1,000 and the client paid €770. No mistake. It's withholding tax — an advance payment of your IRS that the company sends directly to the tax authority. Here's what it is, the rates (23% and 11.5%) and how it appears on your recibo verde.
In the simplified regime, the state estimates your expenses without requiring receipts. The coefficient determines what portion of your income is taxable — and the difference between 0.75 and 0.35 can be enormous.
In the simplified regime you only pay income tax on 75% of what you invoice — not on everything. Understand how the coefficient works, progressive brackets, and when to file your annual declaration.
Practical guide for independent workers on the simplified regime: what is already pre-filled automatically, what you need to confirm, and how it can result in a refund.
May is the month when many freelancers receive a surprise transfer from the government. It's not a mistake - it's your IRS refund. Here's how to maximise it.