Compare a freelancer's income tax (simplified regime) with a company's corporate tax (organised accounting) and see which tends to pay less.
Assumptions: single, no dependants, mainland Portugal; personal income tax before personal deductions; Social Security excluded from both scenarios.
Your salary is also a cost: in a company, the salary you pay yourself as director is a deductible expense that reduces taxable profit.
Estimated tax difference: €854
Analyse my caseThis calculator gives an estimate based on 2026 tax rules and does not replace professional advice. Talk to us for an analysis of your specific case.
The services and industries where these numbers matter most.
Most freelancers in Portugal are taxed on a percentage of revenue, not real profit. How the simplified regime's coefficients work — and when organized accounting wins.
Freelance as a sole trader or set up an LDA company? A practical comparison of taxes, liability, costs and social security for expats doing business in Portugal.
How expense deduction really works for freelancers in Portugal — the simplified regime's 15% rule, organized accounting, and which costs qualify.
The questions we hear most. Can't find yours? Talk to us.
It applies a coefficient to your income (e.g. 0.75 for services) to get the taxable base, which is then taxed at the progressive IRS rates. This calculator assumes single, no dependants, mainland Portugal.
In a company with organised accounting, the salary you pay yourself as director is a deductible expense — it reduces taxable profit and therefore the corporate tax due.
Social Security, personal income-tax deductions, autonomous taxation, municipal surtaxes, reduced SME corporate rates and the tax on dividend distributions. The decision should be analysed case by case — talk to us.
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