Why Hire in Portugal
Expanding to Portugal
Portugal has evolved into one of Western Europe's top technology hubs and tech remote work destinations. With competitive labor costs, excellent English proficiency, and a booming startup ecosystem, it is ideal for scaling tech and software engineering teams.
Using an EOR in Portugal lets you hire top Portuguese software engineers and specialists rapidly while staying in full compliance with the Portuguese Labour Code.
Employment Laws
Employment Regulations in Portugal
Standard working hours are 8 hours per day and 40 hours per week under the Portuguese Labour Code. Probation periods range from 90 days for general staff up to 180 or 240 days for highly complex or managerial roles. Unilateral dismissal without cause is illegal, requiring strict formal objective or disciplinary procedures.
Taxes & Benefits
Taxation and Employee Benefits
Employers contribute 23.75% to Social Security (Segurança Social) plus mandatory workplace accident insurance. Statutory benefits include 22 working days of paid annual vacation, a statutory 13th-month bonus (Christmas allowance), a 14th-month bonus (holiday allowance), and compulsory paid annual training hours.
Payroll & Social Security Reporting
Portuguese Payroll Administration
Payroll is executed monthly. Employers must remit income tax withholdings (IRS) and Social Security contributions directly to the Tax Authority (Autoridade Tributária e Aduaneira) and Segurança Social by statutory monthly deadlines.
IP Assignment & Data Privacy
IP Protection and GDPR Enforcement
Under Portuguese intellectual property law, creations developed during job duties belong to the employer when specified in employment contracts. Data privacy is regulated under the National Data Protection Commission (CNPD) adhering to GDPR rules.
