Recibos Verdes vs. Employment Contract

Workers in Portugal fall into two main categories: "Trabalhador por Conta de Outrem" (Employee with a contract) and "Trabalhador Independente" (Freelancer issuing Green Receipts/Recibos Verdes).

Employees get 14 salaries and paid vacation. Freelancers earn gross income and must handle their own Social Security and VAT payments. Be wary of "False Green Receipts," where companies treat you like an employee but force you to invoice them to avoid taxes.