Social Security for the self-employed in Portugal (2026)
If you work on recibos verdes in Portugal, nobody withholds Social Security for you: you declare your income every quarter and pay every month. In 2026 the basic rule is 21.4% on 70% of your income, with a €20 minimum and some useful exemptions.
How much you pay
Contributions are charged on your relevant income: 70% of services invoiced, or 20% of sales of goods. The rate is 21.4% (25.2% for sole traders registered as ENI). For services, that is roughly 15% of what you invoice.
| Rule (2026) | Value |
|---|---|
| Rate | 21.4% |
| Minimum contribution | €20 a month |
| Maximum base | 12 × IAS = €6,445.56 a month |
| IAS 2026 | €537.13 |
Quarterly return and payment
By the end of January, April, July and October you file a return on Segurança Social Direta with your income for the previous quarter. The monthly average sets your base for the next three months, and each month's contribution is paid between the 10th and the 20th of the following month.
| File by the end of | Income declared | Sets contributions for |
|---|---|---|
| January | October–December | February, March, April |
| April | January–March | May, June, July |
| July | April–June | August, September, October |
| October | July–September | November, December, January |
You pay by Multibanco reference or direct debit. If you had no income in a quarter, declare zero and nothing is due. Missing a return or a payment means fines and interest, and can stop you getting the certificate of no Social Security debt that many clients ask for.
Example: you invoice €7,500 in services from January to March (€2,500 a month). Relevant income is €1,750, so you pay €374.50 a month for May, June and July. Selling goods for the same amount, you would pay 2,500 × 20% × 21.4% = €107.
Adjusting the base
In the quarterly return you can raise or lower the base by up to 25%, in 5% steps. Lowering it by 25% in the example gives €280.88 a month, but also lower future pension and sickness benefits.
Exemptions
- First 12 months: when you first register as self-employed, contributions only start from the 12th month of activity.
- Also employed: if your salary averages at least 1 IAS a month, you are exempt while your average relevant income stays below 4 × IAS (€2,148.52 a month); above that, you pay only on the excess. With €3,500 of monthly service invoices (€2,450 relevant income) you would pay 21.4% of €301.48, or €64.52 a month.
- Some pensioners and people covered by another compulsory scheme can also be exempt.
Contracting entity
If one client accounts for over 50% of your annual income, it pays its own contribution of 7% (50–80%) or 10% (over 80%) on what it paid you, provided your annual income is at least 6 × IAS. This does not come out of your pocket.
What you get in return
Contributions build your pension record and give access to sickness, parental and other benefits, calculated on the base you contribute on. That is the trade-off when you lower the base: smaller payments now, smaller benefits later. Self-employed workers who depend economically on one client can also qualify for a benefit if that work ends, subject to minimum contribution periods.
Contributions also count towards the 15% expenses rule for income tax. See the freelance tax guide and compare with an employee's 11% in the net salary guide.