How to close yot Tax Activity in Portugal: A guide for Self Employed Workers

February 13, 2026
, Tips

Are you self-employed but need to close your tax activity with the Portuguese Tax Authority?

Closing your activity (cessação de atividade) is a mandatory procedure whenever you stop working as a self-employed professional. The process can be completed online through the Portuguese Tax Portal (Portal das Finanças) or in person at a local Tax Office.

In this article, we explain how to close your activity, the steps involved, and the situations in which this decision may be appropriate.

Closing your Tax Activity: A Step-by-Step guide for Self-Employed Workers

If you work as a self-employed professional and issue Portuguese invoice (“recibos verdes”), you will have previously registered your activity with the Portuguese Tax Authority.

However, if your circumstances have changed and you are no longer carrying out your self-employed activity, it is important to formally close your tax registration.

As long as your activity remains open, you continue to be subject to several tax and Social Security obligations. These obligations only cease once your activity has been officially closed.

For this reason, you should notify the Portuguese Tax Authority (Autoridade Tributária e Aduaneira – AT) as soon as you stop your activity.

Below is the step-by-step process for completing the procedure online.

Step 1: Access the Portuguese Tax Portal

Step 2: Select “Services”

From the main menu, click on “Serviços” (Services).

Step 3: Choose “Activity Cessation”

Within the available services, search for “Cessação de Atividade” (Activity Cessation) and select “Entregar Declaração” (Submit Declaration).

Step 4: Complete and Submit the Declaration

The declaration will already contain some pre-filled information.

Complete the remaining fields, validate the information, and submit the declaration electronically.

Once submitted, you should print or save a copy of the declaration, as it serves as proof of the request and may be required together with the confirmation letter subsequently issued by the Portuguese Tax Authority.

It is also important to remember that, in the following year’s Personal Income Tax (IRS) return, you must indicate that your activity has ceased, specifically in Box 14 of Annex B.

Reason for Closing Your Activity

During the process, you will be asked to indicate the reason for closing your activity.

The declaration includes three sections relating to the justification for the cessation, and you should complete those applicable to your situation.

VAT – Box 6

Here, you must indicate the reason for ending your activity in accordance with Article 34 of the Portuguese VAT Code (CIVA).

Personal Income Tax (IRS) – Box 8

In this section, you must justify the cessation for IRS purposes under Article 114 of the Portuguese Personal Income Tax Code (CIRS).

Corporate Income Tax (IRC) – Box 10

This section only applies to corporate taxpayers.

The justification follows the provisions of Article 8(5) of the Portuguese Corporate Income Tax Code (CIRC).

When Should You Consider Closing Your Activity?

There are several situations in which closing your self-employed activity may be advisable.

The most common include:

Unemployment

As mentioned above, maintaining an active self-employed registration means continuing to comply with several tax and Social Security obligations.

If you become unemployed and stop carrying out your self-employed activity, you should consider formally closing it.

Although the Portuguese Tax Authority does not automatically require you to do so, keeping your activity open may oblige you to continue meeting obligations associated with self-employment.

Furthermore, your unemployment benefit may be reduced if you still have an active self-employed registration generating income.

Reduction in Income

If your self-employed activity generates little or no income, it may no longer be worthwhile to keep it active.

Closing your activity also brings an end to your obligation to make Social Security contributions as a self-employed worker.

In addition, you will no longer be required to:

Maintain accounting and record books;
Hold compulsory occupational insurance associated with your activity;
Submit tax declarations relating to that activity when no income has been earned.

In cases where you only need to issue a single invoice occasionally, issuing an isolated act (“ato isolado”) may be a more appropriate alternative than keeping your activity permanently open.

Need Help Closing Your Activity?

If you still have questions or experience any difficulties when closing your activity, seek advice from a Certified Accountant. Professional guidance can help ensure that the process is completed correctly and that all your tax and reporting obligations are properly fulfilled.