In the simplified regime, you don’t need to prove your expenses with receipts. The state assumes that part of your income represents costs — and applies a coefficient to calculate how much is actually taxable.
The coefficient assigned to you depends on the type of activity you carry out. And the difference can be very significant.
What is the coefficient?
The coefficient is a multiplier applied to your gross income to calculate your taxable income — the amount on which you pay IRS.
Taxable income = Gross income × Coefficient
The lower the coefficient → the smaller the taxable portion → less IRS.
The two most common coefficients for service providers
Coefficient 0.75 — activities in the Article 151 CIRS table
Applies to most regulated professionals and technical workers whose activities appear in the table attached to Article 151 of the IRS Code (CIRS):
- Designer, programmer, consultant, trainer, engineer, architect, lawyer
- Accountant, doctor, dentist, psychologist
- Any profession specifically listed in that table
With 0.75: you pay IRS on 75% of your income. The state assumes 25% are expenses — without you needing to prove anything.
Coefficient 0.35 — other services not included in the table
Applies when your service activity is not specifically listed in the Article 151 CIRS table. Less common, but exists for professions and activities that don’t fit the regulated categories.
Examples: certain entertainment activities, event organisation services, digital content activities that don’t fall under other categories.
With 0.35: you pay IRS on only 35% of your income. The state assumes 65% are expenses.
The difference in real numbers
Imagine Tiago, who provides event organisation services (an activity outside the Art. 151 table), with €40,000 annual income. Compare with Miguel, a designer (inside the table):
| Coefficient 0.75 (Miguel) | Coefficient 0.35 (Tiago) | |
|---|---|---|
| Gross income | €40,000 | €40,000 |
| Taxable income | €30,000 | €14,000 |
| Estimated IRS (~28.5% rate) | ≈ €8,550 | ≈ €3,990 |
| Difference | — | €4,560/year |
The right coefficient can mean thousands of euros per year.
How to know which coefficient applies to you
The coefficient depends on the activity you declared under Article 151 of the CIRS when you opened your atividade.
If your profession appears in the Article 151 table → 0.75.
If you carry out a service activity not listed in that table → 0.35.
⚠️ Note: The Article 151 table is extensive. It includes dozens of professions, from IT professionals to translators. If you’re unsure whether your activity is included, consult an accountant — the wrong classification can result in paying more tax than necessary.
What about intellectual property income?
If you receive income from copyright (royalties, licensing of works) — the situation is different.
That income carries a coefficient of 0.95 — meaning 95% is taxable. This is the highest coefficient, because the state considers the production costs of intellectual works to be low in this model.
This coefficient applies to writers receiving royalties, musicians with rights to their works, and other intellectual property rights holders — when the income comes from rights, not from providing services.
Other coefficients in the simplified regime
For reference:
| Coefficient | Type of income |
|---|---|
| 0.15 | Product sales and local accommodation (AL) |
| 0.35 | Service provision not listed in Art. 151 |
| 0.75 | Professional activities in the Art. 151 table |
| 0.95 | Intellectual property (royalties, copyright) |
| 0.10 | Subsidies and grants |
✅ In summary
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The coefficient determines what portion of your income is taxable. With 0.75 you pay IRS on 75% of income. With 0.35 — on only 35%. For the same €40,000, the difference can be over €4,500 in IRS per year.
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Coefficient 0.75 applies to activities in the Article 151 CIRS table (designers, programmers, consultants, engineers, etc.). Coefficient 0.35 applies to services not listed in that table. Copyright royalty income carries a coefficient of 0.95.
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With FIZ the correct coefficient is applied automatically when calculating your taxable income — the system uses your activity data to compute IRS correctly, without manual formulas.
