Living or running a business in Portugal has many advantages: lovely scenery, mild temperature, and a quiet way of life. On handling taxes, bookkeeping, and legal financial requirements, though, things can get a bit challenging. Understanding the Portuguese accounting system is essential regardless of your position—freelancer, startup owner, expat trying to organize their finances.

Bismon intervenes here to relieve your tension from your shoulders.

Why is Accounting Relevant in Portugal?

Portugal's tax rules are straightforward yet rather complicated. Whether you run a business, work alone, or even just handle your personal income, local financial rules will be applicable. From yearly tax returns to VAT filings, social security payments, and invoicing—every stage has to be done correctly.

Ignoring Portuguese accounting standards could result in fines, postponed payments, or perhaps legal problems.

That's why having a trustworthy accountant in Portugal is not a luxury; it is rather a need.

Why Is Portuguese Accounting Different?

Based on the Sistema de Normalização Contabilística (SNC), Portuguese accounting follows international guidelines but with local adaptations. These are some things that set it apart:

• Business digital invoicing mandated
• Monthly VAT reports
• Tax deductions and Social Security
• Different guidelines for residents, non-residents, and digital nomads

These chores can easily become taxing if you are not familiar with the local tongue or the legal jargon.

In Portugal, Who Might Use an Accountant?

Still wondering whether you really need one? Here is a fast checklist:

• You launch a company in Portugal.
• You freelancer or work for yourself.
• You moved to Portugal as an expatriate.
• You own country-based investments or rental houses.