IRS

Withholding tax on recibos verdes: 23%, 11.5% or exemption

By Simples IRS teamPublished 11 November 2026Updated 11 November 20265 min read

Current rates

Situation	Rate
Professions in the article 151 table of the IRS Code (e.g. programmers, designers, consultants, doctors, lawyers)	23%
Other services (e.g. code 1519)	11.5%
Intellectual property (copyright)	16.5%
Sale of goods	No withholding
Private client (without formal accounts)	No withholding

The rates are set out in CIRS, article 101(1). The rate applies to the value of the service before VAT (paragraph 4 of the same article).

Who withholds and when

Who withholds: only a client that has, or should have, formal accounts (contabilidade organizada), such as a company (CIRS, article 101(1)). A private individual does not withhold.
When: at the moment they pay you (paragraph 8 of the same article). That is why the “IRS” section appears on the invoice-receipt (fatura-recibo) and on the receipt (recibo), and not on the invoice (fatura).
Where it goes: the client pays the amount withheld to the State by the 20th of the following month (CIRS, article 98(3)). That amount counts as IRS you have already paid.

Worked examples

1. Profession in the table, 23% rate

You are a programmer and issue an invoice-receipt of €1,000 to a company. Withholding: €1,000 × 23% = €230. If you are exempt from VAT, you receive €770. The €230 appears on your IRS return as tax already withheld.

2. Code 1519, 11.5% rate

You provide other services and issue a receipt of €800 to a company. Withholding: €800 × 11.5% = €92. You receive €708, not counting VAT.

3. Small receipts: the €25 rule

Since 1 July 2025 there is no withholding when the amount to withhold on a receipt is below €25 (CIRS, article 101-B(1)(d)).

Receipt of €100 at 23%: the withholding would be €23. That is below €25, so nothing is withheld.
Receipt of €110 at 23%: €25.30. That is above €25, so it is withheld.
Receipt of €200 at 11.5%: €23. Nothing is withheld.

4. An exemption that ends mid-year

You invoiced less than €15,000 in 2025 and, in 2026, you use the exemption from January. You invoice €2,000 a month. By the end of July you have reached €14,000; in August you get to €16,000 and hit the limit. The exemption ends the following month: from September, receipts to clients with formal accounts must include withholding (CIRS, article 101-B(3)(b)). In 2027 you cannot ask for the exemption, because you went over the limit in 2026 (subparagraph (a) of the same paragraph).

5. The whole year

If you invoice €12,000 to companies in a year, at 23%, €2,760 is withheld. On your IRS return, that amount is subtracted from the tax calculated: if it is more than the tax, you get a refund; if it is less, you pay the difference. Your final IRS depends on your deductions and other income, so it is not the same as the amount withheld.

Withholding exemption (article 101-B)

If you expect to invoice less than €15,000 a year (the limit in article 53 of the VAT Code, CIVA), you can ask not to have IRS withheld. Write on the receipt: “Sem retenção, nos termos do n.º 1 do artigo 101.º-B do Código do IRS.” (“No withholding, under article 101-B(1) of the IRS Code.”)

You cannot use it if you invoiced €15,000 or more in the previous year.
It ends in the month after the month in which you reach the limit.
The exemption based on your forecast does not apply to commissions for brokering contracts (CIRS, article 101-B(1)(a)).

Is the exemption worth it?

You receive more now, but you pay the IRS in one go on the following year’s return. If you use the exemption, set money aside every month: the calculator tells you how much. If you are 35 or younger, also check whether you are entitled to IRS Jovem.

You can also do the opposite: ask the client to use a higher withholding rate, as long as it is a whole number, by giving a written statement to whoever pays you (CIRS, article 98(6)).

Step by step on the Portal das Finanças

On the Portal das Finanças, search for “Faturas e Recibos” and log in with your NIF and password, or with the Chave Móvel Digital.
Choose Emitir > Fatura ou Fatura-Recibo (Issue > Invoice or Invoice-Receipt). Use an invoice-receipt if you are paid on the day of the service; if you are paid later, issue the invoice and, when you are paid, the receipt.
Enter the date of the service and choose the activity (the article 151 code or another one you are registered under).
Fill in the client’s NIF. The “IRS” section, for withholding tax, only appears once you enter the client’s NIF.
Describe the service, the price and the VAT (or the reason for the VAT exemption).
In the “IRS” section, choose the rate (23% or 11.5%) only if the client keeps formal accounts. If you have the exemption, do not enter any withholding, and the document must include the exemption statement.
Click “Emitir” (Issue) and check the details before you finish.

These steps come from the AT user guide for Faturas e Recibos (in Portuguese). As a rule, the invoice must be issued by the 5th working day after the service (AT, Fatura e recibo).

Common mistakes

Using 25% for article 151 professions: the rate is 23%.
Adding withholding to a receipt for a private individual: a client without formal accounts does not withhold.
Calculating withholding on the total including VAT: it applies to the amount before VAT.
Keeping the exemption after reaching €15,000, or using it in a year after one in which you went over that amount.
Spending everything you receive without withholding: the tax arrives all at once on your return.

See if I will get a refund

Frequently asked questions

Is withholding tax 25% in 2026?

No. The 2025 State Budget Law lowered the rate for article 151 activities to 23%, and it stays at 23% in 2026.

Is withholding tax the final tax?

No. It is only an advance payment. The annual return settles the difference: you get a refund or pay the rest.

Does a private client have to withhold IRS?

No. Only clients that have, or should have, formal accounts withhold, such as companies (CIRS, article 101(1)).

I issued a €100 receipt to a company. Is there withholding?

At 23% it would be €23, which is below €25, so there is no withholding (CIRS, article 101-B(1)(d)).

Is withholding calculated with or without VAT?

Without VAT. The rate applies to the value of the service before VAT is added (CIRS, article 101(4)).

What changes if I reach €15,000 in the middle of the year?

The exemption ends the following month. For the rest of that year and the next, receipts to clients with formal accounts must include withholding.

Official sources

Every figure on this page comes from these sources (official documents, in Portuguese). Updated on 11 November 2026