Employer of Record (EOR) in Portugal
If you want to legally employ new team members in Portugal or access the traditional employment benefits as a freelancer, using an EOR provider like Native Teams is the way to go. Our expertise ensures all labour law requirements are met while you work globally.
How does an EOR in Portugal work?
An EOR (Employer of Record) can help you expand your business and team in Portugal by managing all administrative aspects, including payroll processing, crafting employment contracts, benefits administration, and ensuring compliance. Typically, an EOR has legal entities worldwide, including Portugal, so you can skip setting up an entity there just to hire.
If you’re a freelancer, remote worker, or a digital nomad, an EOR can enable you to regulate your employment status and get benefits like a full-time employee in Portugal. This includes but isn’t limited to private health insurance, pension plans, and maternity leave.
Who can use EOR services in Portugal?
Businesses and individuals in Portugal both stand to benefit from EOR services.
Businesses
Businesses that want to tap into the Portugal labour market can easily do so with an EOR. Without the legal legwork and legal entity setup, new employees can be hired, onboarded, and paid in just a few months. If the market doesn’t meet your expectations, you can quickly switch to a new target country without much commitment.
Individuals
Individuals who work with global clients usually don’t receive employee benefits. They have to handle taxes, compliance, pension and health insurance alone. And this can be extremely daunting, especially if you don’t have any legal background. An EOR knows the ins and outs of every labour law in Portugal, allowing you to freelance stress-free.
Features of Native Teams EOR services in Portugal
Employment status
When you hire your new employees through Native Teams, they will be properly employed through our entity and will receive a contract following all the Portuguese employment laws and regulations.
HR administration and documentation
We will automate all the HR administration and keep the documentation of your employees in your Native Teams dashboard, where you can access everything with one click.
Global payroll
Calculating salaries, taxes, benefits, and other deductions for your global workforce can be confusing. Our payroll calculators will simplify the process for you and allow you to manage the payroll of all your global employees in one platform.
Benefits
Your new employee will receive all mandatory benefits in Portugal, such as healthcare, insurance, and pension. Additionally, you can offer them extra benefits like gym memberships and wellness options if you’d like!
Explore Portugal’s labour laws in our hiring guide.
What legal requirements exist for employment in Portugal
Obtaining a tax identification number
Before they can start hiring, employers must obtain a tax identification number (NIF) from the Portuguese tax authorities (Autoridade Tributária e Aduaneira).
Registering with the social security system
Employers must also register with the Social Security system (Segurança Social) and obtain a Social Security number (NISS) for each employee they hire, as well as make social security contributions on behalf of their employees.
Setting up a payroll system
Employers must set up a payroll system where they can manage salaries, taxes, and other deductions for their employees.
Providing a written employment contract
Employees must be given a written employment contract with specific terms and conditions of employment, such as working hours, salary, benefits, and notice period.
Compliance with labour laws
Employers must comply with Portuguese labour laws, which cover areas such as working hours, overtime, leave entitlements, and termination procedures.
Taxes
Employers must pay taxes such as income tax, social security contributions, and any other relevant taxes for their employees.
Please note that Portuguese laws and regulations can change. So, it’s important to keep abreast of the latest developments regarding labour law.
Why choose Native Teams as your Portugal Employer of Record?
Native Teams is your all-in-one EOR provider that can manage all administrative tasks connected with your global work in Portugal. Whether it’s obtaining a tax number, handling social security contributions, or setting up a payroll — we’ve got you covered every step of the way.
Our team possesses the knowledge needed to craft legally compliant contracts and make tax withdrawals, so you can only focus on managing your employees’ daily management.
``What is an Employer of Record?
An Employer of Record (EOR) is a third-party organisation that handles the legal responsibilities of employing workers on behalf of another company. This includes managing payroll, tax compliance, benefits, and adherence to local labour laws. EORs also help freelancers and remote workers formalise their employment status and gain access to benefits.
What are the costs of using an Employer of Record in Portugal?
The cost of EOR services in Portugal depends on the provider, number of employees, and specific services required. Native Teams offers competitive pricing, with business plans starting at €79 per employee per month and individual plans at €49, both covering essential legal employment features.
What is the difference between a PEO and an EOR?
An EOR assumes full legal responsibility for employment tasks such as payroll, taxes, and compliance, while a PEO operates in a co-employment model, sharing responsibilities with the client. EORs are ideal for companies entering new regions without local legal entities, whereas PEOs support businesses already established in a country by streamlining HR operations.
What are the responsibilities of an Employer of Record (EOR)?
An EOR acts as the legal employer, managing payroll, benefits, and employment contracts and ensuring compliance with labour laws. They minimise risk by taking on liability for employment issues and provide HR support, allowing businesses to focus on their core activities.
Is using an Employer of Record in Portugal legal?
Yes, using an EOR in Portugal is completely legal and complies with Portuguese labour laws. Many international companies use EORs to enter the Portuguese market, while freelancers use them to secure formal employment status.
Why use an EOR instead of opening a company or office in Portugal?
An EOR eliminates the complexities of establishing a legal entity in Portugal by handling payroll, compliance, and other employment-related tasks. This provides businesses with the flexibility to scale operations without the long-term commitment of maintaining a local company.
How many people can I employ in Portugal?
There is no legal cap on the number of employees you can hire in Portugal, provided labour laws are followed. The size of your workforce depends on your business needs, budget, and capacity to manage employees effectively.