Being self-employed in Portugal is quite simple as long as you plan things in advance. If your country of origin is a member of the European Union or you have obtained a permanent residence card to live in this country, then you can provide specialized services on your own. Non-EU citizens need a work permit and a visa from the Portuguese Immigration Office in order to work in this country. Portugal is one of the countries with the largest number of self-employed people.

Those who want to work on their own in Portugal have two options. They can register as an unlimited sole trader or a limited liability sole trader. The first option is ideal for people who want to work as freelance photographers, journalists, or part-time teachers. The simplest method of becoming self-employed is to register with your local tax office as an unlimited sole trader. In this case, you will have to pay a tax at the end of the year. This tax will be based on the income earned.

As an unlimited sole trader, you need to purchase a Receipt Book from the tax office to issue receipts for money earned. At the end of the year, he must submit copies of all receipts and pay taxes. If he plans to offer specialized services (such as engineering), he should ensure before registering as self-employed that his qualifications have been recognized by the Portuguese authorities.

Those who want to be self-employed in Portugal can also register as individual traders with limited liability. This system is suitable for people who will need to purchase equipment to perform work-related activities. Although you will not be allowed to hire employers, your expenses can be deducted from total earnings in one year once you have submitted your minimum share capital of 5,000 euros. Becoming a sole trader with limited liability in Portugal is easier than registering as an unlimited sole trader. All you have to do is register at the local Conservatória.

Statistics indicate that the percentage of self-employment in Portugal (25 percent) was higher than the European Union average (14 percent) in 2002. Own-account workers in Portugal include three categories: members of production cooperatives, self-employed workers and employers. . Once you register as self-employed, you will pay between 25.4 and 32 percent monthly in social security contributions.