Green receipts (recibos verdes) and e-Fatura: credit for self-employed workers
What banks look at when your income comes from receipts, and how to organise your documents to show a solid track record.
The bank's starting point
When income comes from self-employment, the bank looks for regularity and proof. It does not look at a single month, but at your track record: how much you declared, for how long, how stable it was and what debts you have. Someone with a good, well-documented track record can obtain terms very close to those offered to an employee.
Documents usually requested
Usually the IRS returns for the last few years, together with the corresponding tax assessment notices, because they show the income actually declared and taxed. The bank may also ask for the declaration of commencement of activity or the activity registration statement, the certificate of no debt to the Tax and Customs Authority (Finanças) and the statement of contribution status from Social Security (Segurança Social), as well as statements of contributions.
They may also ask for the record of invoices and receipts issued, bank statements and, where applicable, periodic IVA returns. If you keep organised accounts, your accountant can provide trial balances and financial statements.
What e-Fatura is and why it helps
e-Fatura is the Tax and Customs Authority (Autoridade Tributária) system where invoices are reported. As a self-employed worker, you should check on the portal that the invoices you have issued have been reported and that the amounts match what you know you have invoiced. A complete record avoids discrepancies between what you declare and what appears in the system.
For the bank, seeing consistent income across your tax returns, invoices and bank statements inspires confidence. Discrepancies raise questions.
How to prepare the ground
If possible, start preparing the process well in advance. Avoid overdue debts to the Tax and Customs Authority (Finanças) and Social Security (Segurança Social), as these can prevent you from obtaining credit. If there was a one-off drop in income, be ready to explain it. Keeping your contributions and taxes up to date is often the deciding factor.
Do you know how much you can borrow? Banks calculate your repayment capacity based on the average income they take into account, which is usually lower than that of your best year. Run realistic simulations and confirm with the bank which calculation method it uses.
Gathering everything without the hassle
The documents are spread across several portals: the Tax and Customs Authority (Finanças), Social Security Direct (Segurança Social Direta) and the Bank of Portugal (Banco de Portugal). If it is more convenient, Titus Docs can collect them on your behalf, once you have given your consent, and deliver the official PDF files. We recommend that you confirm with your credit intermediary or bank the exact list of documents they need in your case.