If you are a self-employed professional in Portugal currently taxed under organized accounting (contabilidade organizada) but expect lower income going forward, you may be considering switching to the simplified regime (regime simplificado).

A frequent question we receive is:

Can I move from organized accounting to the simplified regime without cancelling my activity?

The answer is yes, provided certain legal conditions are met.

This article explains the legal framework, deadlines, and technical distinctions that matter — based on the Portuguese Personal Income Tax Code (CIRS).

1. Legal Framework – Article 28 of the CIRS

Under Article 28 of the CIRS:

The simplified regime applies to taxpayers with Category B income (self-employment)
The annual gross income must not exceed €200,000 in the previous year

If a taxpayer is in organized accounting by option, they may return to the simplified regime by:

Submitting a Declaration of Changes (Declaração de Alterações)
Doing so by 31 March of the year in which the change is intended

If the declaration is submitted within that deadline:

The change takes effect in the same year

Example

If in 2025 your gross income was below €200,000, you may opt for the simplified regime in 2026 by submitting the change no later than 31 March 2026.

2. Conditions to Move Back to the Simplified Regime

You can switch if:

Your Category B gross income in the previous year did not exceed €200,000
You are not legally required to maintain organized accounting
You submit the declaration within the legal deadline

If organized accounting is mandatory due to legal obligation (for example, exceeding the threshold in prior years), the change will not be permitted.

3. Important Distinction: “Having Organized Accounting” vs “Being Taxed Based on Accounting”

This is where confusion often arises.

These are not the same concept.

A. Having Organized Accounting

This refers to maintaining accounting records in accordance with commercial and tax standards.

A taxpayer may have organized accounting because:

It is legally required
It was previously mandatory
It was chosen voluntarily
It is maintained for internal management purposes

However, having accounting does not automatically mean your taxable income is calculated using it.

Under Article 116 of the CIRS, taxpayers not required to maintain organized accounting are subject to simplified record-keeping rules.

B. Being Taxed Based on Organized Accounting

Under Article 32 of the CIRS, when taxed under organized accounting:

Taxable income is determined based on accounting profit
Adjusted for fiscal corrections
Following IRC (Corporate Tax Code) rules

This is a direct method of taxation.

By contrast, under the simplified regime (Article 31 of the CIRS):

Taxable income is calculated by applying legal coefficients
It is not based on actual expenses
Accounting results are irrelevant for IRS purposes

You may technically keep accounting for management purposes while being taxed under the simplified regime.

4. Practical Procedure – How to Make the Change

The transition is made through the Declaration of Changes of Activity on the Portuguese Tax Portal.

Two sections are often confused:

Quadro 16

This indicates whether you have organized accounting and identifies the certified accountant.
It does not change your taxation regime.

Quadro 19

This is the relevant field to opt for or withdraw from taxation based on organized accounting.
This section determines the fiscal regime.

If Quadro 19 is not correctly completed, the regime will not change for tax purposes.

5. What Changes After Moving to the Simplified Regime?

If the change is valid:

IRS taxable income is calculated using legal coefficients
Social Security contributions follow simplified rules
Deduction of actual expenses is no longer relevant for IRS
Compliance obligations are reduced

This often benefits professionals with:

Lower operating costs
Decreasing turnover
Simplified business models
Remote service activity

6. Strategic Considerations Before Switching

Changing regime should not be automatic.

You should evaluate:

Your expected gross revenue
Your expense structure
Coefficient applicable to your activity (Article 31 CIRS)
Impact on Social Security contributions
Cash flow projections

In some cases, organized accounting remains more advantageous, especially when expenses are high.

7. Deadline Is Critical

The deadline to change is 31 March of the year in which the new regime should apply.

Missing this deadline means:

You remain under organized accounting for that year
The change can only take effect in the following year

There is no retroactive correction mechanism once the deadline passes.

8. Common Errors We See

Confusing Quadro 16 with Quadro 19
Assuming accounting can simply “stop” without formal declaration
Missing the March deadline
Failing to assess the €200,000 threshold correctly
Not considering previous mandatory regime lock-in periods

These mistakes may lead to unintended tax consequences.

9. Can You Switch Without Closing the Activity?

Yes.

You do not need to cancel your activity to move from organized accounting to the simplified regime.

The change is made through a formal alteration of your tax registration — not through closure and reopening.

Closing the activity unnecessarily may create:

VAT complications
Social Security interruptions
Registration inconsistencies

The correct approach is a structured regime change.

Final Takeaway

Switching from organized accounting to the simplified regime in Portugal is possible — but it must be done:

Within the legal income threshold
Before 31 March
Through the correct declaration fields
With a prior fiscal impact assessment

A structured review prevents compliance errors and ensures optimal taxation.

Need a Regime Assessment?

If you are considering changing from organized accounting to the simplified regime, we can review:

Your previous year’s gross income
Your activity classification
Applicable coefficients
Social Security implications
Deadline alignment

A proper evaluation ensures the transition is legally valid and financially sound.

Tax regime changes should be strategic — not reactive.

How to Change from Organized Accounting to the Simplified Regime in Portugal (Without Closing Your Activity)