Social security contributions & tax for self employed

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Social security contributions & tax for self employed


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Old 4th May 2020, 10:18 AM
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Default Social security contributions & tax for self employed

HI,,

I have spent lots of hours online reading up on taxes for self employed people in Portugal but im struggling to find a definitive answer regarding social security.

I am planning on moving to Portugal later this year from the UK and will be working self employed. I am hoping to qualify for NHR which means 20% income tax, firstly can anybody clarify if there is a 4k allowance in Portugal? And also if you are able to deduct expenses in a similar fashion to in the UK ie mortgage interest, equipment, utility bills for home office etc?

Regarding social security I have read that is is around 30%, a lot of articles ive read just say "30%" which scared me at first, but then Ive read that its 30% of a reference amount of which you can choose? So you can decide how much you social security you pay? How do these different amounts effect your eligibility for social security benefits?

Apologies for all of the questions, I have spent countless hours reading and im pretty overwhelmed!

Thanks
G

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Old 8th May 2020, 12:04 PM
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well how much time do you have - this is a confusing issue! re social security, it changed last year, now regardless of earnings, you have to pay a minimum of 20€ a month if you are self-employed (even if you don't earn anything that month!)
The formula is as follows: average monthly income x 70% x 21,4%
(averaged over the previous quarter)
you certainly can't choose how much you want to pay!!!

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Old 9th May 2020, 11:13 AM
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Thanks for the info, i believe the social security contribution method you posted is for the simplified regime? How does it work for organised accounting?

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Old 9th May 2020, 11:24 AM
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sorry no idea! yes, I am under the simplified regime .. it's always best to ask an accountant to get the absolute best advice .. it is a minefield here!

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