How do I become self-employed (green receipts)?
Yes: working freelance with green receipts is legal and simple — just open activity before invoicing. The basis is the VAT Code (art. 53), the IRS Code and the independent-worker contribution regime. Steps: open activity on the Tax Portal (Social Security registration is then automatic) and issue an electronic green receipt for each payment, by the 15th of the following month. There's a VAT exemption up to €15,000 of turnover (2025 figure kept for 2026). You're on the simplified regime by default. For Social Security, you pay 21.4% on the relevant income (70% of turnover), with a quarterly declaration — but you're exempt for the first 12 months. In short: yes, it's the normal freelancer route.
📋 The rules
- Open activity at Finanças before invoicing
- Issue a green receipt by the 15th of the following month
- VAT exemption up to €15,000 of turnover
- Social Security: 21.4% on 70% of income
- Full Social Security exemption for the first 12 months
🔓 Exceptions
- Exceeding the limit by over 25% (€18,750): immediate VAT
- A freelancer also employed (≥ minimum wage) may be SS-exempt
- The art. 53 exemption doesn't cover exports
⚠️ Penalties & fines
Not opening activity or not issuing (or late-issuing) receipts is an offence, with a fine of €150 to €3,750 (RGIT). Omissions or inaccuracies in declarations (art. 119 of the RGIT) can run from €375 to €22,500 (often reduced to the minimum if voluntarily corrected). The 2026 key figures: VAT exempt up to €15,000 (moving to normal VAT from €18,750 in the same year), 21.4% Social Security on 70% of income and 0% in the first year. Beware a myth: "green receipts are like Brazil's MEI" is false — green receipts is an invoicing mechanism tied to opening activity, not a company status with a fixed monthly tax. To start: open activity, issue the receipts and meet the quarterly declarations.
📎 Official sources
- Tax Portal — art. 53 of the VAT Code →
- DL 35/2025 — small-operator VAT exemption →
- ePortugal — self-employed workers →
❓ Frequently asked
How do I start issuing green receipts?
You must open activity on the Tax Portal, with the start-of-activity declaration, before providing your first service. Social Security registration is then automatic. From there, you issue an electronic green receipt for each payment you receive, by the 15th of the month following the payment.
Do I have to charge VAT?
Only if you exceed the exemption limit. You're VAT-exempt while your annual turnover doesn't exceed €15,000, the figure in force in 2026. Above that limit, you start charging VAT, as a rule from the following year, or immediately if you exceed the limit by more than 25%, i.e. above €18,750.
How much do I pay Social Security?
The rate is 21.4% on the relevant income, which generally corresponds to 70% of the amount invoiced for services. There's a quarterly declaration, in January, April, July and October, adjusting the amount to your real turnover. There's also a full exemption from contributions in the first 12 months of activity.
Is it true I don't pay Social Security in the first year?
Yes, as a rule. In the first 12 months of independent activity, you benefit from a full exemption from Social Security contributions, provided you had no independent activity in previous years. The exemption is automatic. From the 13th month, you start paying the 21.4% contribution on the relevant income.
Are green receipts the same as Brazil's MEI?
No. Green receipts are an invoicing mechanism, tied to opening activity at Finanças, not a company status. Brazil's MEI is its own regime, with a fixed monthly tax and a limit in reais. In Portugal, what exists is the independent-worker regime, with its own rules.
🔎 Common searches
What people search to land here:
- “open activity green receipts”
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- “issue green receipt deadline”