Organized accounting vs simplified: when to switch

Nuno does video and spends a fortune on equipment. He hears he should switch to “organized accounting” to deduct it all. Sofia is a copywriter with almost no expenses, and someone told her the same. Only one of them is right - because the choice between the simplified regime and organized accounting depends largely on your expenses.

First: when it’s mandatory

Organized accounting becomes mandatory once you go above €200,000 of annual category B income - in two consecutive years, or straight away if in a single year you pass €250,000 (more than 25% over the limit); it takes effect the following year. Until then, you’re in the simplified regime by default - but you can opt to switch to organized if it pays off. So the question is: does it?

The difference that decides everything: expenses

Simplified regime

The taxable base starts at 75% of what you invoice (0.75 coefficient, art. 151.º) - part of the other 25% depends on a minimum of deductions and expenses (art. 31.º(13))
You don't need a certified accountant
Simple and cheap

Organized accounting

You deduct real expenses (those legally accepted and linked to the activity)
You must hire a certified accountant (typically ~€150-300/month)
More obligations and fixed costs

The key is here: in the simplified regime, the 0.75 coefficient (art. 151.º services; other activities have different coefficients) taxes 75% of what you invoice and leaves the other 25% outside taxation - that’s the general rule; an adjustment applies only if the sum of your automatic deductions, Social Security contributions and activity-related expenses falls below 15% of gross income, in which case the difference is added to taxable income (art. 31.º(13)). In organized accounting, you deduct your real expenses - which tends to pay off only if they’re well above that 25% margin.

The rule of thumb

Which one pays off for you?

Low expenses (below ~25% of what you invoice)

The simplified regime wins: the untaxed margin (as a rule ~25%) is bigger than your real expenses, and you pay no accountant

Sofia, the copywriter

High expenses (well above ~25%)

Organized accounting may win: you deduct what you really spend, and the saving can beat the accountant's cost

Nuno, with lots of equipment

In other words: Sofia (few expenses) stays in the simplified regime; Nuno (lots of equipment) should run the numbers on organized. The 0.75 coefficient is generous for those who spend little - which is why most freelancers are better off in the simplified regime.

Careful: this is a rule of thumb, not a closed formula. The exact maths depends on your income level, your actually-deductible expenses, the simplified regime’s expense-justification rules and the accountant’s cost. Before switching, ask an accountant for a simulation of both scenarios with your numbers - a regime change has its own timing and shouldn’t be done mid-year on impulse.

✅ In summary

Organized accounting becomes mandatory once you exceed €200,000 of annual category B income (in two consecutive years, or more than €250,000 in a single year), taking effect the following year. Until then, you’re in the simplified regime by default, but you can opt for organized.
Decide by your expenses: the simplified regime leaves, as a rule, 25% outside taxation (0.75 coefficient, art. 151.º services; part depends on a minimum of deductions and expenses) and needs no accountant; organized lets you deduct the real ones but requires an accountant. In general, it only pays to leave the simplified regime if your expenses are well above that 25%.
With FIZ you run the simplified regime yourself, no accountant - and you see the weight of your expenses, so you know whether switching would ever pay. See the plans.