Cashflow tool
How much should you set aside for tax?
The single biggest cashflow anxiety for Portuguese freelancers: how much of every invoice to move to a separate account so April's IRS settlement and quarterly SS contributions don't surprise you. Enter your monthly gross and we'll tell you.
Year of activity
Tax regime
Set aside per month
€1,692
Roughly 40.3% effective tax rate. Includes IRS + Social Security + 5% buffer for variability. Move this amount to a separate account each month so the April IRS settlement and quarterly SS contributions never surprise you.
Estimated annual IRS
€12,142
Estimated annual SS
€7,190
Estimate only. Assumes professional-services activity (coefficient 0.75) under simplified regime. Doesn't account for deductions à coleta, family quotient, or mid-year regime changes. For exact numbers run the full tax calculator.
The honest math behind this
For a professional-services freelancer under simplified regime (the 75% activity coefficient that fits ~90% of expat freelancers), the breakdown is:
- Year 1: 50% IRS reduction (taxable base halved to 37.5% of gross) AND 12-month SS exemption. Effective tax often under 7%.
- Year 2: 25% IRS reduction (taxable base 56.25% of gross). Full SS resumes.
- Year 3+: Full simplified regime. ~75% of gross taxable for IRS, 70% of gross as SS contribution base.
We add a 5% buffer on the recommended monthly saving because freelance income is variable - it's cheaper to have a small surplus come April than to scramble for the difference.
Don't miss the next deadline
Get a heads-up before each filing.
You've worked out the monthly saving. Now make sure you don't miss the deadline to actually pay it. One short email before each Portuguese tax deadline.
Full tax calculator
For the exact IRS + SS breakdown with NHR/IFICI, deductions, and mixed-regime scenarios.
First-year freelancer guide
Why year 1 is so much cheaper, and how to plan when the benefits expire.