{"id":29717,"date":"2024-05-20T10:00:00","date_gmt":"2024-05-20T08:00:00","guid":{"rendered":"https:\/\/carexpat.com\/blog\/?p=29717"},"modified":"2025-11-03T11:25:08","modified_gmt":"2025-11-03T09:25:08","slug":"auto-entrepreneur-in-portugal-a-complete-guide-for-french-entrepreneurs","status":"publish","type":"post","link":"https:\/\/carexpat.com\/blog\/en\/auto-entrepreneur-in-portugal-a-complete-guide-for-french-entrepreneurs\/","title":{"rendered":"Auto-entrepreneur in Portugal: a complete guide for French entrepreneurs"},"content":{"rendered":"<p class=\"wp-block-paragraph\">More and more French people are moving to Portugal, a sunny, dynamic country that&rsquo;s an attractive place to live and work. Its pleasant living environment, growing economy and status as a member of the European Union make it a destination of choice for French entrepreneurs. Its proximity to France also makes it an attractive destination.<\/p>\n\n\n<p class=\"wp-block-paragraph\">One of the most attractive legal statuses for French people wishing to set up <a href=\"https:\/\/carexpat.com\/blog\/vivre-au-portugal\/\" target=\"_blank\" rel=\"noreferrer noopener\">in Portugal<\/a> as self-employed workers is the \u00ab\u00a0Recibos Verdes\u00a0\u00bb regime, the Portuguese equivalent of auto-entreprise. This simple, flexible system offers many advantages to entrepreneurs. The formalities are simplified, taxation is advantageous and you can benefit from social security coverage.<\/p>\n\n\n<p class=\"wp-block-paragraph\">Whether you&rsquo;re a craftsman, artist, consultant, freelancer or any other self-employed person, this comprehensive guide will take you step by step through the process of becoming an auto-entrepreneur in Portugal as a French citizen. Find out about the conditions required, the steps you need to take to register, the accounting and tax obligations you&rsquo;ll be subject to, and the help and resources available to support you in your project.<\/p>\n\n\n<h2 class=\"wp-block-heading\">Introducing the self-entrepreneur scheme in Portugal (\u00ab\u00a0Recibos Verdes\u00a0\u00bb)<\/h2>\n\n\n<p class=\"wp-block-paragraph\">The \u00ab\u00a0Recibos Verdes\u00a0\u00bb scheme is a simplified form of legal status for self-employed workers in Portugal. It is aimed at individuals engaged in commercial, industrial or service activities, whose annual sales do not exceed certain ceilings.<\/p>\n\n\n<h3 class=\"wp-block-heading\">Advantages of the auto-entrepreneur scheme for French nationals in Portugal<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Simple formalities: Setting up a self-employed business in Portugal is quick and easy. There&rsquo;s no need to set up a company or pay in share capital.<\/li>\n\n\n\n<li>Tax advantages: auto-entrepreneurs benefit from a progressive income tax rate, ranging from 5% to 28%. They are also exempt from VAT (Impuesto sobre o Valor Acrescentado) for annual sales of less than 10,000 euros.<\/li>\n\n\n\n<li>Social protection: auto-entrepreneurs contribute to the Social Security system for self-employed workers. They benefit from health insurance, retirement and maternity coverage.<\/li>\n\n\n\n<li>Flexibility: The auto-entrepreneur system offers a great deal of freedom in the exercise of your professional activity. This means you can choose your own pace of work.<\/li>\n<\/ul>\n\n\n<h2 class=\"wp-block-heading\">How to become an auto-entrepreneur in Portugal<\/h2>\n\n\n<p class=\"wp-block-paragraph\">The process of becoming an auto-entrepreneur in Portugal can be simplified by using the services of a chartered accountant or a business start-up organization. Here&rsquo;s an overview of the steps you need to take if you want to go it alone.<\/p>\n\n\n<h3 class=\"wp-block-heading\">Obtaining a Portuguese tax number (NIF)<\/h3>\n\n\n<p class=\"wp-block-paragraph\">The Portuguese tax number, also known as the NIF (N\u00famero de Identifica\u00e7\u00e3o Fiscal), is a unique identification assigned to every taxpayer in Portugal. It is essential for all administrative and tax procedures in the country. To obtain it, go to your nearest Portuguese tax office (Autoridade Tribut\u00e1ria e Aduaneira). Don&rsquo;t forget to bring valid proof of identity and proof of residence in Portugal. You can also apply for your NIF online on the <a href=\"https:\/\/www.portaldasfinancas.gov.pt\/pt\/menu.action?pai=27\">Autoridade Tribut\u00e1ria e Aduaneira<\/a> website <a href=\"https:\/\/www.portaldasfinancas.gov.pt\/pt\/menu.action?pai=27\">.<\/a> You&rsquo;ll need to fill in a NIF application form and pay the associated processing fee. <\/p>\n\n\n<h3 class=\"wp-block-heading\">Choice of activity and CAE code<\/h3>\n\n\n<p class=\"wp-block-paragraph\">Before registering as an auto-entrepreneur, choose your main activity and identify the CAE<a href=\"https:\/\/www.ine.pt\/xportal\/xmain?xpgid=ine_main&amp;xpid=INE\">(C\u00f3digo de Atividade Econ\u00f3mica<\/a>) code corresponding to your field of activity. The CAE code is an alphanumeric code used to classify economic activities in Portugal.<\/p>\n\n\n<h3 class=\"wp-block-heading\">Opening a business bank account<\/h3>\n\n\n<p class=\"wp-block-paragraph\">Although it is not compulsory to open a business bank account to become an auto-entrepreneur in Portugal, it is strongly recommended. This will enable you to separate your business transactions from your personal ones. This will make it easier for you to manage your accounts. Several banks in Portugal have special offers for auto-entrepreneurs.<\/p>\n\n\n<h3 class=\"wp-block-heading\">Joining the Social Security scheme for self-employed workers<\/h3>\n\n\n<p class=\"wp-block-paragraph\">As a self-employed entrepreneur in Portugal, you must join the Social Security scheme for self-employed workers (Seguran\u00e7a Social dos Trabalhadores Independentes). This will enable you to benefit from health insurance, pension and maternity coverage. To join the Social Security system for self-employed workers, go to your nearest <a href=\"https:\/\/www.seg-social.pt\/trabalhadores-independentes\">Seguran\u00e7a Social dos Trabalhadores Independentes<\/a>. Bring your NIF and proof of residence in Portugal. Fill in an application form and choose your health insurance coverage. All that&rsquo;s left to do is pay your social security contributions.<\/p>\n\n\n<p class=\"wp-block-paragraph\">However, we recommend that you take out international health insurance in Portugal. The country&rsquo;s social security system may have its limits. International health insurance provides comprehensive coverage for medical care, emergencies, specialist consultations and hospitalization. You&rsquo;ll avoid unforeseen costs and financial complications in the event of illness or accident. What&rsquo;s more, with international health insurance, you have access to a network of quality healthcare providers. You&rsquo;ll also benefit from multilingual assistance to help you in the event of a medical emergency.<\/p>\n\n\n\n<div class=\"wp-block-divi-layout\"><h2>carexpat.com, the new way to<br \/><span style=\"color: #15203d\">abroad<\/span><\/h2><h3><span style=\"color: #DBDB19;font-size: 22px\">1.<\/span> Best prices<\/h3>\n<ul>\n<li>No surcharge on insurance rates,<br \/>\nwe compare over 300 insurance offers<\/li>\n<\/ul><h3><span style=\"color: #DBDB19;font-size: 22px\">2.<\/span> Simplicity<\/h3>\n<ul>\n<li>A simple path to select your<br \/>\nsolution in just a few clicks<\/li>\n<\/ul><h3><span style=\"color: #DBDB19;font-size: 22px\">3.<\/span> Support<\/h3>\n<ul>\n<li>Our advisors provide<br \/>\n100% personalized support<\/li>\n<\/ul><\/div>\n\n\n<h3 class=\"wp-block-heading\">Entry in the Commercial Register<\/h3>\n\n\n<p class=\"wp-block-paragraph\">Registration in the Commercial Register (Registo Comercial) is mandatory for certain specific activities, such as retail or catering. If your business requires registration with the Registro Comercial, go to your nearest Registro Comercial office. You&rsquo;ll need your NIF, the CAE code for your business and proof of residence in Portugal. Fill in an application form and pay the registration fee.<\/p>\n\n\n<h2 class=\"wp-block-heading\">French auto-entrepreneur obligations in Portugal<\/h2>\n\n\n<p class=\"wp-block-paragraph\">As a self-employed entrepreneur in Portugal, you are obliged to maintain a minimum level of compatibility. This means keeping all supporting documents for your income and expenses. For example: invoices, receipts and bank statements. You must also maintain a regularly updated income and expense ledger that complies with legal requirements. Many accounting software packages are available to make this task easier. Don&rsquo;t hesitate to consult a chartered accountant for personalized advice.<\/p>\n\n\n<h3 class=\"wp-block-heading\">Declaration of sales and payment of social security contributions<\/h3>\n\n\n<p class=\"wp-block-paragraph\">Every month or quarter, you must declare your sales to the Autoridade Tribut\u00e1ria e Aduaneira and pay the corresponding social security contributions. Social security contributions are calculated on the basis of your sales figures. You can declare your sales and pay your social security contributions online on the Autoridade Tribut\u00e1ria e Aduaneira website.<\/p>\n\n\n<h3 class=\"wp-block-heading\">Income tax return and payment<\/h3>\n\n\n<p class=\"wp-block-paragraph\">Each year, you must declare your income to the Autoridade Tribut\u00e1ria e Aduaneira and pay the corresponding income tax. The income tax rate for self-employed entrepreneurs in Portugal is progressive, ranging from 5% to 28%. Income tax returns and payments can be made online via the Autoridade Tribut\u00e1ria e Aduaneira website.<\/p>\n\n\n<h2 class=\"wp-block-heading\">Tax advantages for self-entrepreneurs in Portugal<\/h2>\n\n\n<p class=\"wp-block-paragraph\">Self-employed entrepreneurs in Portugal benefit from a progressive income tax system based on annual sales. Tax rates vary according to the following brackets: from \u20ac0 to \u20ac10,000 (5%), from \u20ac10,001 to \u20ac25,000 (14%), from \u20ac25,001 to \u20ac50,000 (22%), and from \u20ac50,001 to \u20ac85,000 (28%). In addition, auto-entrepreneurs benefit from tax exemptions such as VAT exemption for annual sales under \u20ac10,000, exemption from capital gains tax on real estate, and exemption from inheritance and gift tax. However, if their annual sales exceed \u20ac10,000, they will be subject to VAT, at a standard rate of 23%. They must then register with the Autoridade Tribut\u00e1ria e Aduaneira and declare their VAT on a monthly or quarterly basis.<\/p>\n\n\n<h2 class=\"wp-block-heading\">The advantages of freelancing for French nationals in Portugal<\/h2>\n\n\n<p class=\"wp-block-paragraph\">Opening and closing this type of business is straightforward, with few administrative formalities required. Under the simplified tax regime, self-employed Portuguese workers whose annual sales remain below 10,000 euros can benefit from VAT exemption.<\/p>\n\n\n<p class=\"wp-block-paragraph\">What&rsquo;s more, after two years of contributions, the auto-entrepreneur can claim unemployment benefit, provided that the end of his or her professional activity is involuntary, for example in the event of closure due to a drop in sales or unforeseen economic circumstances. Despite starting business with an initial capital of 0 euros, it is crucial to note that the auto-entrepreneur is responsible for the company&rsquo;s debts, exposing his or her personal assets to the risk of seizure in the event of financial difficulties.<\/p>\n\n\n<p class=\"wp-block-paragraph\">Furthermore, this status confers total control over the business, without the need to consult shareholders or associates, enabling decisions to be taken quickly and freely. Finally, the sole trader is taxed under category B &#8211; Business and Professional Income, simplifying the tax procedure with a single declaration and reducing tax costs.<\/p>\n\n\n<h2 class=\"wp-block-heading\">Towards an entrepreneurial adventure for French people wishing to become auto-entrepreneurs in Portugal<\/h2>\n\n\n<p class=\"wp-block-paragraph\">Now you&rsquo;re <a href=\"https:\/\/carexpat.com\/blog\/pourquoi-sinstaller-au-portugal\/\">ready to start freelancing in Portugal!<\/a> The process is generally quick and easy. If you don&rsquo;t yet speak Portuguese, we recommend that you take someone with you who does. What&rsquo;s more, if you&rsquo;re unsure about any of the steps involved in setting up your freelance business in Portugal, don&rsquo;t hesitate to ask a professional for help. This will help you avoid potential mistakes and future problems, particularly with regard to the choice of tax regime, which will depend on your activity and anticipated sales. Finally, to find freelance assignments, several specialized platforms are available, such as Workana, Fixando, Upwork, Guru, etc.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>More and more French people are moving to Portugal, a sunny, dynamic country that&rsquo;s an attractive place to live and work. Its pleasant living environment, growing economy and status as a member of the European Union make it a destination of choice for French entrepreneurs. Its proximity to France also makes it an attractive destination. [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":23801,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[356],"tags":[371,365,326,350],"class_list":["post-29717","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lifestyle","tag-digital-nomad","tag-europe","tag-expat","tag-portugal"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Everything you need to know about freelancing in Portugal if you&#039;re French!<\/title>\n<meta name=\"description\" content=\"How can you become a freelancer in Portugal if you&#039;re French? 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