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If you
are going to be providing a only service such as a
journalist, photographer, part-time teacher, to clients on
an irregular basis, then the simplest and possibly the
least expensive method of becoming self employed,
is to register with the local tax office as a self
employed worker under the correct criteria of service you will
be providing - trabalhador por conta própria.
This system allows you not
only to be self employed but employed on a permanent
basis at the same time. The only tax you would pay would
be at the end of the year depending upon the income
earned, much like the rest of Europe by submitting your
personal tax return.
By registering at the tax
office as self employed (trabalhador por conta própria)
you will be able to purchase a
Receipt Book (Caderneta de Recibos) from them to
issue receipts for all the monies earned. Then at the
end of the financial year you will have to submit copies
of all receipts along with your self assessment tax
form.
In the first year of
registering as a self employed person under this system
the government does provide financial incentives,
notably exemption from paying social security
contributions (segurança social) for the first 12
months. There after though these are charged at the
normal rate.
However if you are
providing a specialist service such as an electrician
you will have to ensure prior to registering as self
employed, your qualifications from your country of
origin have been recognised by the Portuguese
authorities and are registered with the relevant
governing bodies.
One of the disadvantages
of the trabalhador por conta própria system is it's
limitations. The system is designed for workers with specific skills and
does not suit persons who must purchase specialist goods or equipment to
provide this service.
If for example you are a plumber and not only provide services of a
plumber but provide the equipment. The receipts you charge out will of
course include the cost of the materials and goods. However these
receipts will not be classed as tax deductible in this system. And
before very long you will be eligible to register for value added tax (IVA)
for your services, adding an extra 21% (23% in 2011) to the bill for
your customers. |
