Self-employed or a company: which pays off?

This is probably the question we hear most often. And the honest answer is: it depends. It depends on your turnover, your expenses, the kind of work you do and your medium-term goals.

Working as self-employed (on “recibos verdes”, as it is known in Portugal) is simple and cheap to keep compliant. But as your turnover grows, the tax burden can rise significantly, and that is when setting up a company starts to make sense.

In many cases a company allows a more efficient tax structure and a clearer separation between your personal assets and the business. On the other hand, it requires organised accounts and more reporting obligations.

The best way to decide is with real numbers. We run a simulation for your case and show you the impact of each scenario, so your decision is informed rather than based on guesswork.