What IRS withholding applies to self-employed invoices in Portugal, and can I opt out?

Checked on 2026-10-25

When a Portuguese client with organised accounts pays you, it must withhold IRS: 23% for professional activities in the official table, 11.5% for other self-employed services and 16.5% for intellectual-property income. If you expect less than €15,000 of such income in the year, you can opt out by writing the legal exemption phrase on your receipt.

Key facts

What	The law says	Source
Who withholds	Payers that have, or must have, organised accounting	Código do IRS, art. 101(1)
Professional activities in the official table	23%	Código do IRS, art. 101(1)(b)
Other self-employed services	11.5%	Código do IRS, art. 101(1)(c); art. 3(1)(b)
Intellectual property (original owner)	16.5%	Código do IRS, art. 101(1)(a); art. 3(1)(c)
Base	Gross amount, before VAT	Código do IRS, art. 101(4)
Opt-out	If you expect category B income below €15,000 in the year (not for intermediation commissions)	Código do IRS, art. 101-B(1)(a); Código do IVA, art. 53(1)
How to opt out	Write «Sem retenção, nos termos do n.º 1 do artigo 101.º-B do Código do IRS.» on the receipt	Código do IRS, art. 101-B(2)
Small amounts	No withholding when a single withholding would be under €25	Código do IRS, art. 101-B(1)(d)

Who withholds and how much

Article 101 of the IRS Code makes payers that have or must have organised accounting withhold tax when they pay self-employed income. The rate depends on what you do:

23% for the professional activities listed in the table referred to in article 151;
11.5% for other income from services provided on your own account (art. 3(1)(b)) not covered by the 23% rate;
16.5% for income from intellectual or industrial property received by its original owner (art. 3(1)(c)).

Withholding is applied to the gross amount before VAT (art. 101(4)) at the moment of payment (art. 101(8)).

Opting out under €15,000

Article 101-B(1)(a) exempts category B income from withholding when you expect to earn less in the year than the amount in article 53(1) of the VAT Code, which is €15,000. Commissions for intermediating contracts are excluded.

The opt-out is your choice. To use it, put this sentence on each receipt: «Sem retenção, nos termos do n.º 1 do artigo 101.º-B do Código do IRS.» (art. 101-B(2)). You can’t use it if your income in the previous year reached the limit, and it stops in the month after you reach the limit during the year (art. 101-B(3)).

The withholding duty in art. 101(1) applies only to payers that have, or must have, organised accounting.
The VAT exemption uses the same €15,000 threshold (Código do IVA, art. 53(1)).

Sources

Código do IRS, art. 101.º – Retenção sobre rendimentos de outras categorias (Portal das Finanças, AT) checked 2026-10-25
Código do IRS, art. 101.º-B – Dispensa de retenção na fonte (Portal das Finanças, AT) checked 2026-10-25
Código do IRS, art. 3.º – Rendimentos da categoria B (Portal das Finanças, AT) checked 2026-10-25
Código do IVA, art. 53.º – Âmbito de aplicação no território nacional (Portal das Finanças, AT) checked 2026-10-25

Change history

2026-10-25: Page created

This is general information, not legal advice, and Lumen is not a law firm. Rules change and offices differ: check the official sources above before you act. Found something wrong or out of date? Write to support@lumen.observer.