Accounting for architects, engineers and consultants.

Accounting for architects, engineers and consultants

Who is it for?

Architects, engineers, economists, consultants, designers, programmers and other self-employed professionals, professional practises and consultancy firms.

Is it in the table in Article 151 or not?

Almost everything depends on whether your activity is listed in the table of professional activities set out in Article 151 of the Personal Income Tax Code. Architects, engineers, economists, computer programmers and designers are included; many consultancy activities do not have their own code and are therefore not included in the table. The difference:

• In the table: Under the simplified scheme, income tax is levied on 75% of the invoiced amount, and the withholding tax is 23%;
• Not in the table: Income tax is levied at a rate of 35%, and the withholding rate is 11.5%.

In both cases, 15% of the turnover must be accounted for by business expenses, and any shortfall is added to income (Article 31(13)). In the first two years of business activity, the rate is reduced to 50% and 25% — but only for those who do not receive a salary or pension during those years.

VAT and withholding tax

If your annual turnover is up to €15,000, you may be exempt from VAT (Article 53 of the VAT Code) and apply for exemption from withholding tax. Above that threshold, services are subject to VAT at 23%. Services provided to businesses in other countries are, as a rule, taxed in the customer’s country and must be included in the recapitulative statement.

Social Security

Self-employed workers pay 21.4% on 70% of their relevant income, which is declared quarterly. The first year of activity is exempt, and those who also work as employees may be exempt within certain limits.

Self-employed status or a company

As turnover grows, the question arises: is it worth setting up a partnership? A partnership in which all the partners are professionals practising the same activity listed in the schedule is a professional partnership and is classified as fiscal transparency: the profit is subject to personal income tax (IRS) for the partners. A consultancy firm not falling within this category pays corporation tax (IRC) and may have the simplified corporation tax regime. The company’s vehicles are taxed separately — see the vehicle separate taxation simulator.

Compare plans on the simplified tax regime simulator or organised accounting and view your final tax return at the Income Tax simulator.

How we work

1. Background. Business activity code, income tax scheme, VAT and withholding tax — all correct from the very first receipt.
2. Throughout the year. Invoicing, VAT, National Insurance and expenses for 15%, with the relevant documents from the client department.
3. Decisions. When turnover changes, we reassess the situation: organised bookkeeping, a company, or carrying on as before.

The accounts and tax returns are signed by a Certified Accountant registered with the Institute of Certified Accountants (see Legal information). The rules described here are those for 2026; the classification of each case is always confirmed at the first meeting.

Frequently asked questions

What is the withholding tax rate on my payslips?

23% if your business activity is listed in the table in Article 151 of the Personal Income Tax Code, 11.5% if it is not. If your annual turnover is less than €15,000, you may apply for an exemption.

Do I have to charge VAT?

Only if your annual turnover is €15,000 or more. Below that threshold, you may be exempt.

At what point does it become worthwhile to set up a business?

There is no single figure: it depends on your expenses, how much you want to withdraw and your family circumstances. We’ll work it out using your figures.

I work for overseas clients. How do I invoice them?

For companies from other countries, as a general rule, no Portuguese VAT is payable, provided that reverse charge is specified and a recapitulative statement is submitted. For private individuals, different rules apply.

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