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Simplificado vs Organizada — Cat B accounting
The two Cat B accounting regimes for Portuguese freelancers. Simplificado assumes your costs via a coefficient; Organizada taxes real profit but demands a certified accountant. The crossover is roughly at 25% documented expenses.
| Simplificado | Organizada | |
|---|---|---|
| Bookkeeping | None required. Keep invoices for reference only. | Full double-entry books maintained by a certified accountant (TOC). |
| Taxable base | Revenue × coefficient — a presumption of costs. | Revenue − actual documented expenses (true profit). |
| Coefficient — services | 0.75 (25% presumed costs; 10% automatic + 15% must be justified above €4,104). | Not applicable — real profit is calculated. |
| Coefficient — goods | 0.15 (85% presumed costs). | Not applicable — real profit is calculated. |
| Accountant (TOC) required | No. | Yes — mandatory. Typical cost €1,000-€2,000/year. |
| Revenue ceiling | Up to €200,000/year. Above this, Organizada becomes mandatory the following year. | No ceiling. Mandatory if revenue >€200k for two consecutive years. |
| VAT rules | Under €15k/year: franquia (VAT-exempt). Above: standard quarterly IVA returns. | Same VAT rules — regime choice is orthogonal to VAT. |
| Best for | Knowledge-work freelancers with expenses well below 25% of revenue. | High-expense freelancers (equipment, subcontractors, physical goods) or anyone over €200k. |
Which regime fits you?
What's your expected annual revenue?
Frequently asked questions
Can I switch regimes mid-year?
No. Regime is chosen at Início de Atividade or in the Alteração de Atividade window (March-to-March) at Portal das Finanças. The choice locks for the year.
What happens if I document more than 25% costs on Simplificado?
Simplificado doesn't reward you for it — the coefficient is a fixed 0.75 regardless. Above 25% real expenses, Organizada starts winning even after the accountant fee.
Does the accountant fee change the answer?
Yes. The €1,000-€2,000/year fee is the fixed cost you have to beat in tax savings before Organizada pays off. The calculator surfaces the crossover expense value that clears the fee.
Is the 15% justified-cost portion a real risk?
For low-revenue freelancers, no — the 10% automatic buffer covers most. Above ~€27,000 gross revenue, the unjustified portion adds to the tax base, so keep receipts even on Simplificado.