If you want to become a freelancer (Independent Entrepreneur) in Portugal, you must be in the country on a valid legal visa or exempt from a permit. To become a freelancer, you need to self-declare with the Portuguese taxation and finance department by providing the following documents:

• Legal entry declaration from the Portuguese immigration department (AIMA)
• NIF (Número de Identificação Fiscal) form from the Portuguese tax authorities
• Resident certificate (Junta) from the local municipal corporation (junta de freguesia)
• Personal bank account

Before registering as a freelancer, you need to find a responsible company or person who is already active with the tax department to take your tax responsibilities and declare to the tax department that the declaration has been prepared and attested by a notary.

As a freelancer, you can start any small business activity without registering as a limited company and enter into service provider agreements instead of employment contracts. Freelancers in Portugal are exempt from social contribution for a year and exempt from IVA (VAT) up to 12,500 euros in sales/services per year. Social contribution is lower compared to a regular employee and is calculated as 1/3 of your total wage and paid monthly or quarterly. Freelancers can work freely anywhere with any legitimate company or person around the world and are allowed to work as employees and become shareholders in Portuguese companies.

To obtain a social security number (NISS) as a freelancer, you need to provide the freelancer registration certificate issued by the tax authority along with other supporting documents such as a Schengen visa, Portugal entry declaration, NIF, Junta, bank account, and passport. The NISS number will be issued at the same time. To apply for a residency permit as a freelancer in Portugal, you must be considered an active entrepreneur. The processing time to obtain residency takes 6-8 months, and there is no separate slot for self-employed individuals.

To close your freelancer activities in Portugal, visit the Portuguese tax authority department’s website and request to close it, regardless of any outstanding tax liabilities.