AJUDAMOS A REDUZIR IMPOSTOS

Viver em Portugal

1. Qual é a sua situação financeira?
2. O que pretende e como quer atingir os seus objectivos?

Providenciamos um conjunto abrangente de serviços para o seu planeamento financeiro, aconselhando-o tanto na sua declaração anual de rendimentos, como na aposentação, gestão de património e de investimentos.

Orgulhamo-nos da imparcialidade das nossas recomendações e da prestação do serviço personalisado.

Latest News

Foreign Retirees pay 10% tax on foreign pension incomeSince last year, the exemption in Portugal for foreign earned pensions ended. Pensioners who have non‑habitual resident status pay a tax of 10% on retirement benefits paid by their country...Read more
Lisbon is the second healthiest city in the world for family lifeAmong the criteria under analysis by the British insurer CIA Landlord, stand out the quality of life, the crime rate, the number of schools, available outdoor activities and the cost...Read more
Benefits of investing via the Golden Visa investment program in Portugal– Visa exemption for traveling within the Schengen Area; – Family reunification even for children studying abroad; – Applying for permanent residence after 5 years of residency; – Applying for Portuguese citizenship after...Read more
Dual Citizenship in PortugalDual Citizenship in Portugal  Those who are contemplating taking on Portuguese citizenship often wish to retain their nationality of origin. Fortunately, Portugal recognises and permits dual nationality. There can be a...Read more
Aggregate vs Autonomous Reporting OptionsWhen assessing Company profits, taxation occurs in a two-stage process: first, the Company pays Corporate Income Tax on its profits, then Shareholders pay Individual Income Tax on these distributed profits...Read more
Residency Rules and the Withdrawal Agreement - Frequently Asked QuestionsThe Withdrawal Agreement provides for citizens rights upon the UK’s withdrawal from the EU. The following are some FAQ’s based on policy set by SEF (Serviço de Estrangeiros e Fronteiras). Read more
Brexit - Stays of 90 daysThe commercial agreement established between the United Kingdom and the European Union will allow the mobility of European and British citizens for short stays (maximum 90 days consecutively). As of...Read more
Brexit - UK abandons Erasmus ProgrammeThe United Kingdom leaves the European student exchange programme, Erasmus, as a consequence of the post-Brexit trade agreement reached with the European Union. Prime Minister Boris Johnson announced a replacement...Read more
State Budget 2021 - tax havensThe imposition of IMI and IMT for companies directly or indirectly based in so-called tax havens, approved in the State Budget, does not distinguish between the jurisdictions with which Portugal...Read more

Whether for profit or pleasure, the truth is that there are many people who choose to be sole traders as a way to make a living. More than one out of five Portuguese workers are self-employed, a percentage that places Portugal within the highest level of entrepreneurs in the EU. For a person to operate as a sole trader, there are some preliminary requirements that must be met with Tax Authority and Social Security Administration before starting up a business operation.

 

Opening a business activity

If you want to do business as a sole trader, the first step is to communicate your intentions to the Tax Authorities (“A.T.”), even before you launch your business. This is done by registering the Opening of Business Activity Declaration (“Declaração de Início de Actividade”). This step can be done in person at a Finanças office or in a Citizens’ Centre (“Loja de Cidadão”). In these cases, a civil servant guides you through the process to complete the necessary forms and enroll you directly into the system.

Taxpayers should also choose between being assessed in the Simplified Regime or under Standard Accounting procedures. Portuguese tax residents can also open their business activity on the Internet through the Finanças website. To submit a declaration, you must first have a Portuguese Tax Identification Number (“NIF”) as well as your Finanças password (“senha”). Proceed as follows:

Home Services Submit Activity Declarations Opening of Business Activity

An important note: Once you have completed these steps, you can start your business or professional activity after receiving confirmation by post in the form of a “dependability code” that will be sent to your registered address.

Another important point: If you intend to perform a one-off “Isolated Act” rather than exercise an on-going business activity, you are excused from the requirement of submitting an Opening of Business Activity Declaration.

Social Security

Registration for Social Security happens automatically and does not require you to complete any additional forms. If this is your initial registration, you are eligible for a first year exemption from Social Security contributions. Likewise, until your taxable sole trader income surpasses €2,515.32, you will also be exempt. In situations where you accumulate an independent business activity with salaried work or are in receipt a Social Security Old Age pension, you are also excused from Social Security contributions. Standard contributions for Sole traders are at the rate of 29.6%. 

Closing your business activity

It is not at all uncommon for sole traders to cease their business activity yet fail to notify the Tax Authority of the fact. It should not come as a surprise that as far as Finanças is concerned, the activity remains open until reported closed. To wind up your self employment, you should go to an “AT” office, a Citizens’ Centre or to the Finanças website. To close your activity online, proceed to the “AT” website and go though the following steps:

Home Services Submit Activity Declarations Closing a Business Activity

On your next IRS tax return, you must refer to the cessation of activity in Annex B. As happens with the opening of a sole trader activity, the cessation will be reported automatically to Social Security by Finanças and no further declaration is necessary on your part. Failure to close your business with result in ongoing assessment based on previous activity.