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Portugal is an attractive destination for businesses expanding in Western Europe, offering a skilled and multilingual workforce, a stable economy, and competitive employment costs compared to other EU countries. With strong worker protections, a favourable business environment, and a digital-forward talent pool, Portugal is a prime choice for remote and international hiring.
Portugal’s location, skilled workforce, and competitive employment conditions make it a popular destination for global companies looking to hire in Western Europe. Hiring in Portugal involves adhering to national labour laws, providing written employment contracts, and contributing to social security.
Discover everything you need to know about hiring in Portugal, from minimum wage rules to compliance requirements.
All employment contracts in Portugal must be in writing and follow the Portuguese Labour Code. Contracts can be fixed-term, indefinite, or part-time, and must clearly specify the job role, salary, working hours, and benefits.
Notice periods: 15 - 60 days, depending on the service period.
Termination of employment: Can occur via resignation, dismissal with cause, redundancy, or mutual agreement, with specific rules depending on the contract type and length of employment.
Want to learn more about employment contracts in Portugal? Get our full template below!
Portuguese employers must offer a range of mandatory benefits as part of the employment package. Many also provide additional perks to remain competitive and attract top talent.
Mandatory benefits: Social security (includes pension, unemployment, and parental leave), meal allowance, holiday allowance, and christmas allowance.
Common perks: Health insurance, performance bonuses, remote work allowance, extra vacation days, career development plans, transportation allowance.
Leave policies: Annual leave, sick leave, maternity leave, paternity leave, public holidays.
Want to learn more about all the employee benefits available in Portugal?
Portugal has a progressive tax system for individuals and a defined set of employer obligations. Employers are responsible for withholding personal income tax and paying social security contributions.
Property Tax (IMI): Based on the value of real estate properties.
Employers in Portugal must pay salaries in accordance with the employment contract, and wages cannot fall below the national minimum wage. Salaries are typically paid monthly via bank transfer.
Salary payment deadline: Last working day of each month.
Payroll currency: Euro (EUR)
Want to learn more about Portugal’s regulations about payroll, salaries, and contributions? Click below to read more now!
Portugal’s employment laws are governed by the Labour Code, which outlines everything from working conditions to termination procedures and employer responsibilities.
Total employment cost:
Minimum wage: €870 per month
Probation period: 90 days for most permanent contracts, 180 days for positions of technical complexity or high responsibility, 240 days for senior management roles, 15 days for fixed-term contracts shorter than six months, 30 days for fixed-term contracts of six months or longer.
Foreign nationals from outside the EU must obtain a work visa and a residence permit to work in Portugal. EU/EEA/Swiss citizens can live and work in Portugal without a visa, but must register with local authorities.
Types of permits: D-visa
Process length: 3 - 4 months
Process cost: Starts at 2200 EUR
Want to learn more about obtaining visas and work permits in Portugal? Click here to find out more or download our detailed guide.
Using EOR services in Portugal allows you to legally employ individuals in the country without opening legal entities there. The EOR takes over all the legal responsibilities as an official employer, including:
Using PEO services in Portugal provides HR and administrative support, while you remain the legal employer. PEO services are ideal for employers who already have legal entities in Portugal but need support to manage their workforce operations, including:
Native Teams provides a payroll calculator adjusted per Portugal’s labour laws. Estimate gross-to-net salaries, tax withholdings, and employer costs in Portugal with our localised calculator. Designed to meet all payroll and compliance requirements.
Note: The information provided above is for general guidance only and should not be considered a substitute for legal advice. We strongly recommend consulting with qualified professionals who specialise in local labour laws before making any hiring decisions. While the data was accurate at the time of writing, labour regulations are subject to change, and it is your responsibility to stay informed about the latest developments.
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Freelancers in Portugal must register as self-employed (trabalhadores independentes) with the tax and social security authorities and are responsible for their own taxes and social security contributions.
As a client, you are generally not responsible for withholding taxes or social charges on their behalf. It is important to ensure the working relationship clearly reflects an independent contractor status to avoid misclassification as an employee, which could lead to legal and financial penalties. Having a clear written agreement outlining the scope of work, payment terms, responsibilities, and deadlines is highly recommended.
