Expat Exchange
Free MembershipSign In

Portugal Expat Forum

4 years ago

New sole trader in Portugal - no need to pay social security

4 years ago
Hi everyone - title is not clickbait :)

I did extensive research and emailed about 50 accountants and lawyers on the subject.

I got this from one of them and wasnt able to confirm what this actually means in practice:

"There is a 100% exemption for social security in the first year and 50% in the second."

Let's assume in my first year (fy20) I invoice at the tune of 80k euro -- will I never ever have to pay social security on that amount ?
Not even in fy21 ?

And on my earnings for fy21 I will only have to pay 50% of social security?


If this is true , that would mean that in my first year I'm enjoying all social security benefits without ever paying for them ? How is this sustainable ?

Thank you for the clarification

Portugal Residency Advisors
Portugal Residency Advisors

Allianz Care
Allianz Care

Flexible solutions allow you to tailor your cover to meet your needs and budget. Use Promocode: LIFE10 and get 10% off your international health insurance for life!
Get Quote

Allianz CareAllianz Care

Flexible solutions allow you to tailor your cover to meet your needs and budget. Use Promocode: LIFE10 and get 10% off your international health insurance for life!
Get Quote

Living in Portugal GuideLiving in Portugal Guide

Our Living in Portugal Guide is a primer on everything about living in Portugal: best places to live, cost of living, pros and cons, healthcare and insurance, obtaining a driver's license, how to bring your pet with you and more.

Portugal Forum Portugal Forum
Join our Portugal forum to meet other expats and talk about living in Portugal.

Contribute to Portugal Network Contribute
Help other expats and newcomers by answering questions about the challenges and adventures of living in Portugal.

Best Places to Live in Portugal Best Places to Live in Portugal

If you're thinking about living in Portugal, here are the 15 Best Places to Live in Portugal in 2023.

Healthcare in PortugalHealthcare in Portugal

Expats in Portugal with a residency visa can participate in the national health care system. Here's what you need to know about the SNS and the combination of public and private services you'll need to manage your health in Portugal.

Cost of Living in PortugalCost of Living in Portugal

Expats offer insight into the cost of living in Portugal.

Moving to PortugalMoving to Portugal Guide

Expats moving to Portugal are drawn by a variety of places to live, a rich history and so much more. Here are some tips on what it means to move there, and how to make it happen.

Real Estate in PortugalReal Estate in Portugal

Real estate listings in popular cities and towns in Portugal.

Pros Cons of Living in PortugalPros & Cons of Living in Portugal

Take off your rose-colored glasses and learn what expats have to say about the biggest challenges and the greatest rewards of living in Portugal.

Retiring in PortugalRetiring in Portugal

Advice for people retiring in Portugal.

Visa and Residency PortugalPortugal Visa & Residency Guide

Thanks to Susan Stults Korthase for this helpful overview of current requirements to begin the process of obtaining a Residency Visa when moving from the US to Portugal.

10 Tips for Living in Portugal10 Tips for Living in Portugal

If you've recently arrived in Portugal, here are 10 tips for digital nomads living in Portugal.

Allianz Care
Allianz Care

Flexible solutions allow you to tailor your cover to meet your needs and budget. Use Promocode: LIFE10 and get 10% off your international health insurance for life!
Get Quote

Allianz CareAllianz Care

Flexible solutions allow you to tailor your cover to meet your needs and budget. Use Promocode: LIFE10 and get 10% off your international health insurance for life!
Get Quote

Contribute to Portugal Network Contribute
Help others in Portugal by answering questions about the challenges and adventures of living in Portugal.

Portugal Residency Advisors
Portugal Residency Advisors

Copyright 1997-2024 Burlingame Interactive, Inc.

Privacy Policy Legal