You're a freelancer living in Lisbon. You invoice US clients in dollars, spend in euros, and owe taxes to two countries plus Portuguese social security. Here's the full picture so you can plan properly.
Register as trabalhador independente (independent worker) at Finanças. You'll need a NIF, proof of address, and to select your CAE (activity code). The simplified regime is available for income under €200,000/year — you're taxed on 75% of income (25% automatic deduction), or less for certain professions. The guide covers which CAE codes apply to common American freelance activities.
Portuguese freelancers pay Segurança Social at 21.4% of 70% of declared income (effective ~15%). First 12 months exempt for new registrations. This is separate from income tax and adds significantly to your tax burden. The upside: it can offset US self-employment tax via the Totalization Agreement.
FEIE excludes income from federal income tax but not self-employment tax (15.3%). The US-Portugal Totalization Agreement can exempt the Social Security portion (12.4%) if you're paying into Segurança Social, leaving only Medicare (2.9%). The guide shows exactly how to claim this exemption.
Simplified: taxed on 75% of income, no deductions allowed. Standard (contabilidade organizada): taxed on actual profit after deductions, requires an accountant. If your expenses exceed 25% of income, the standard regime saves more. The guide calculates the crossover point.
Portuguese freelancers issue electronic receipts (recibos verdes) through the Portal das Finanças for every payment received. Even income from US clients requires a recibo verde. The guide includes step-by-step instructions for issuing your first recibo, including how to handle USD invoices.
Portugal requires withholding (retenção na fonte) at 25% on invoices to Portuguese clients, or quarterly estimated payments. The US requires quarterly estimated payments (1040-ES). The guide provides a combined calendar and calculation method. Full tax overview →
Educational content only — not tax or legal advice. This guide is an orientation document. Tax law is complex and individual situations vary. Always consult a qualified US expat CPA and a licensed local attorney before making financial, visa, or property decisions. Figures are verified as of the date shown and subject to change. Full disclaimer →