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Portugal Tax Information

23% IVA (standard)

IVA is 23% standard (mainland), 13% reduced, 6% super-reduced. Different rates in Azores/Madeira.

Freelancer Services to Invoice

  • Hourly consulting
  • Project-based work
  • Retainer agreements
  • Milestone billing
  • Rush/priority fees

Invoice Requirements in Portugal

NIF number
Business address
Client NIF
Invoice number
IVA breakdown
Total

Payment Terms

Net 14 or Net 30 is standard. Consider 25-50% deposits for larger projects.

Pronto pagamento30 dias60 diasFim do mês

Payment Methods in Portugal

Transferência bancáriaMB WayPayPalCartão de crédito

Freelancer Invoice Tips

  • Always use a unique invoice number
  • Clearly state payment terms upfront
  • Include detailed breakdown of work
  • Add late payment fees
  • Keep copies for tax purposes

Frequently Asked Questions

What tax rate applies to freelancer invoices in Portugal?

Portugal has 23% IVA (standard). IVA is 23% standard (mainland), 13% reduced, 6% super-reduced. Different rates in Azores/Madeira.

What payment methods are common for freelancers in Portugal?

Common payment methods in Portugal include: Transferência bancária, MB Way, PayPal, Cartão de crédito. Net 14 or Net 30 is standard. Consider 25-50% deposits for larger projects.

What should freelancer invoices include in Portugal?

Your invoice should include: NIF number, Business address, Client NIF, Invoice number. For freelancer services specifically, also include: Hourly consulting, Project-based work, Retainer agreements.

How do I invoice for hourly freelance work?

List each task with hours worked and hourly rate. Include dates and detailed descriptions.

Should I charge a deposit as a freelancer?

Yes, especially for larger projects. A 25-50% deposit protects you from non-payment.

What IVA rates apply?

Mainland: 23%, 13%, 6%. Azores: 16%, 9%, 4%. Madeira: 22%, 12%, 5%.