- Starting self-employment in Portugal is now more complex due to VAT changes.
- Previously, new freelancers had a one-year VAT exemption if turnover was below a certain threshold.
- Recent changes set the exemption threshold at €15,000, applicable only within Portugal.
- Only those with recognized tax residence in Portugal qualify for the exemption.
- Non-residents must issue VAT invoices from the start and miss out on simplified tax treatment.
- Non-residents have two options: register under the regular VAT regime or apply for an EU-based exemption.
- New rules increase administrative burdens and tax pressure for newcomers.
- Reforms may discourage new freelancers and immigrant entrepreneurs in Portugal.
- Newcomers should understand immediate VAT obligations and residency requirements for exemptions.
Source: inlis.pt
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
