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Deductible Expenses for Freelancers in Portugal

When becoming a self-employed entrepreneur in Portugal, you'll face a crucial decision between the simplified and organized accounting regimes. This choice significantly impacts deductible expenses and charges for your self-employment, such as internet, computer, meals, and even Uber rides. Your accounting option as a freelancer in Portugal determines your taxable income and the resulting tax liability. Discover deductible expenses and charges for self-employed individuals in Portugal with insights from Inlis Consulting.


In Portugal, under the simplified accounting system for freelancers and self-employed individuals, it's not possible to deduct expenses related to your business activities. The tax authority assumes that 75% of your income is profit, with only 25% considered as expenses. For certain specific activities like trade, hotel, restaurant, and beverage services, 85% of the income is considered profit.


However, this scheme comes with fewer tax obligations and additional fees, and if your annual turnover exceeds 50,000 euros, you'll be shifted to the organized accounting system."


DEDUCTIBLE EXPENSES AND AN ORGANIZED ACCOUNTING SYSTEM


Organized Accounting System in Portugal: This tax status is particularly beneficial for self-employed individuals with more complex business activities or when expenses related to their work surpass 25% of their income.


Deductible Expenses Under Organized Accounting:

  1. Car-Related Expenses: Including fuel and travel costs when used for professional purposes.

  2. Meals at the Workplace: Expenses for meals consumed while working.

  3. Subsistence Expenses: Applicable when absent from work due to business-related activities.

  4. Computer Equipment Costs: Expenses incurred in acquiring and maintaining computer equipment necessary for your work.

  5. Raw Material Purchases: Costs associated with the acquisition of materials essential to your business.

  6. Certified Accountant Fees: Fees paid for services rendered by a certified accountant.

  7. Fines: Deductible in cases where fines are incurred due to offenses related to your business.

  8. Physical Workplace Expenses: This includes maintenance, rent, utility bills, and expenses related to bank loans for your workplace.

Choosing Between Simplified and Organized Accounting: It's vital to carefully analyze all your business costs and expenses and calculate whether opting for the simplified or organized accounting system is more advantageous for your specific situation. Keep in mind that the taxation method you select significantly impacts your success as a freelancer in Portugal.


Need Assistance Starting Your Freelance Business in Portugal?

If you require support in launching your freelance activity in Portugal, you can explore our online services by clicking the link below. We can assist you throughout the entire process.



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