Filling out Green Receipts Online for Free

This article will guide you through the process of filling out green receipts online for free, through the Portal das Finanças official government website.

If you earn income from holiday rentals in Portugal under Category B (Self-Employed Income), you will have to fill out a tax return each year. In addition to an annual tax return, you must also communicate to the Portuguese tax authorities the income you receive from each booking every time you get paid.

To fulfil this obligation, you must issue an invoice to you guests - either through a recognised online portal (paid) or by filling out 'green receipts' online through the Portal das Finanças (free).(Article 36 of the CIVA Code).

Step 1: Log on to Portal das Finanças

Go to http://www.portaldasfinancas.gov.pt and click on ‘Iniciar Sessão’ if you are an existing user or 'Registar-se’ if you have not yet signed up to Portal das Finanças online.

You will be taken to the secure login page, where you can register as a new user or enter your details and access your personal homepage.

If you register as a new user, you will have to wait on average 5 working days to receive your password (senha), sent by post to your registered fiscal address. For a step-by-step guide on how to sign up to the Portal das Finanças online, click here.

Step 2: Access Green Receipts Online

Once you have successfully logged on to your personal homepage, click on 'Todos os Serviços' in the menu on the left-hand-side of the page - this will take you to the Site Map where you can scroll through a long list and eventually select 'Faturas e Recebos Verdes' nested under the title, 'Recibos Verdes'.

Then click on:

> ‘Issue’ (Emitir);

> ‘Invoice or Invoice-Receipt’ (Fatura ou Fatura-Recebo).

Step 3: Filling out the required information

Once you have navigated to the correct page to fill out your green receipts, simply follow the prompts to fill out the required information; key details are explained below:

Choosing invoice or invoice-receipt

Invoice: to issue when the service is rendered

Receipt: to issue when service is paid

Invoice-Receipt: "2 in 1", ideal for when the service is paid on time.

Selecting the VAT Scheme

In short: most holiday home owners will fall under ' IVA – regime de isenção (art. 53º)' - applicable to those who earn less than €10,000 per year. This VAT scheme means you are exempt from paying VAT (IVA). If in doubt, consult your activity initiation document, 'Declaração de início de actividade' where you will find this information (under 'expected income'), or go to ‘Personal Data’ > ‘Other Activity Data’ on the Portal das Finanças.

If you have earned over €10,000 in the previous tax year, you must charge VAT at the applicable rate on all receipts, submit quarterly VAT declarations through the Portal das Finanças, where a document is subsequently issued to pay VAT.

Selecting a ‘Base de incidência em IRS’

‘Base de incidência em IRS’ dictates the amount of tax withheld at the source – a way for the tax authorities to collect income tax in advance.

In short:

if you earn less than €10,000 per year, select Dispensa de retenção - art. 101b (1), al. (A) and (b) of the CIRS . This means you are exempt. (Article 101 of the CIRS).

If you expect to earn above €10,000 in rental income and the person or entity paying you has organised accounts, you are required to select the applicable withholding tax rate.