Recibos verdes for foreign clients 2026

€

74% of the €2,000.00 you invoice

No IVA or retenção

As a rule, no. Services to an EU business (with a valid VAT number in VIES) or to a business outside the EU are not taxed in Portugal: the invoice carries the mention «IVA – autoliquidação» (reverse charge, code M40). To an individual in the EU, Portuguese IVA applies as it does to an individual in Portugal; to an individual outside the EU it depends on the kind of service (art. 6.º, n.º 11, of the Código do IVA).

As a rule, no: retenção na fonte (withholding) is done by entities with organised accounting in Portugal, and a client with no establishment here does not withhold. So the IRS on those invoices is all settled in the yearly return.

As a rule, no: the €15,000 limit counts only turnover in Portugal, and services to foreign businesses are located outside Portugal. That is our reading of arts. 52.º-A and 6.º of the Código do IVA, with no official example for services: if you invoice a lot abroad, check with the tax office (Finanças) or an accountant.

Yes, if you live in Portugal. Segurança Social is 21.4% on 70% of what you invoice, declared every quarter; the year’s IRS is settled in the yearly return, filed from 1 April to 30 June of the following year.