--- title: "Freelancer vs. Company Simulator 2026 | Grupo Your" description: "Compare net income as a freelancer vs. company in Portugal. Free simulator with IRS, corporate tax, social security and dividend calculations." lang: en json-ld: | [ { "@context": "https://schema.org", "@type": "WebApplication", "name": "Freelancer vs. Company Simulator 2026 | Grupo Your", "description": "Compare net income as a freelancer vs. company in Portugal. Free simulator with IRS, corporate tax, social security and dividend calculations.", "url": "https://grupoyour.com/en/freelancer-vs-company-simulator", "applicationCategory": "FinanceApplication", "operatingSystem": "Web", "offers": { "@type": "Offer", "price": "0", "priceCurrency": "EUR" }, "provider": { "@type": "Organization", "name": "Grupo Your", "url": "https://grupoyour.com" } }, { "@context": "https://schema.org", "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://grupoyour.com/en" }, { "@type": "ListItem", "position": 2, "name": "Simulators", "item": "https://grupoyour.com/en/simulators" }, { "@type": "ListItem", "position": 3, "name": "Freelancer vs Company", "item": "https://grupoyour.com/en/freelancer-vs-company-simulator" } ] } ] --- [Saltar para o conteúdo](#main-content) [![Grupo Your - Abertura de Empresa em Portugal](/assets/logo-2wXESdnX.png)](/en) Grupo YourServicesTools[Contacts](/en/contacts) 7 EN Personalized Proposal # Tax simulator 2026 Freelancer vs. Company Comparative estimate with corrected calculations · approximate values · does not replace professional tax advice. Includes mandatory accounting costs (CC) in the company analysis. Annual gross revenue 40 000 € 10 k€ 300 k€ Annual deductible expenses 5000 € 0 € 150 k€ Company settings (Ltd.) Manager monthly gross salary 1200 €/mo 920 € 5.000 € % of profits as dividends 70% 0% (max retention) 100% Annual accounting costs (mandatory in Ltd.) 1800 €/year 600 € 6.000 € In a company, real expenses are 100% deducted from profit. As a freelancer, the 0.75 coefficient implies a 25% implicit deduction — regardless of actual expenses. Comparative advantages of the company 154 € Social Security savings Company vs. Freelancer — Expense deduction advantage IRC 16,5% vs. marginal IRS 35,5% on excess income Comparative results Annual take-home difference +9049 € More advantageous ### Freelancer Simplified regime · Category B Gross revenue 40 000 € Taxable income (coef. 0.75) 30 000 € Social Security (21.4% × 70%) −5992 € IRS taxable income 30 000 € Income tax (IRS) −6647 € Total tax burden (SS+IRS) 12 639 € Annual net income take-home · revenue − SS − IRS 27 361 € ### Company Ltd. · General corporate tax regime Gross revenue 40 000 € Manager salary (×14) −16 800 € Employer SS (23.75% × 14) −3990 € Real deductible expenses −5000 € Accounting costs (CC) −1800 € Taxable profit 12 410 € Corporate tax + surcharge (≈16,5%) −2048 € Manager net salary 13 090 € Net dividends (28% withh.) 5223 € Total tax burden 13 579 € Annual net income take-home · net salary + dividends 18 312 € \+ **3109 €** retained in company as equity (avoids 28% dividend withholding) Breakeven by revenue The orange line is the freelancer take-home; the teal line is the company take-home. The dashed vertical line marks the current selected revenue. The crossing point is the breakeven where the company becomes more advantageous. **Tip:** Adjust the manager's salary and dividend percentage to find the optimal mix between immediate income and capital retention. Keeping profits in the company can be advantageous for future investment. Want a personalized analysis for your case? The Grupo Your team can help you choose the most advantageous tax structure. [Talk to a specialist](/en/contacts) Informative simulator 2026 · IRS rates 2025 (approved brackets) · SME corporate tax 15% (first €50k) + 19% + ~1.5% surcharge · Freelancer SS 21.4% on 70% revenue Values do not include personal tax deductions (health, housing, dependents) or minimum existence threshold. [Consult an accountant for personalized analysis](/en/contacts). ## Did you find this simulator useful? Share it with someone who might benefit from this tool. 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