Euro (EUR)
Portuguese and Mirandese
Cost of Living
42.18 (US 69.92)
(US 69.92)
Time (UTC)
UTC + 0
Semi-presidential Republic

Hire in Portugal without an entity and fully compliant with local labor laws

Portugal is located in southern Europe on the Iberian Peninsula, bordering Spain. Ranked the 6th safest country in the world, Portugal's 96% literacy rate and high-quality Wi-Fi appeal to digital nomads and global employers.

Portugal is approximately the size of Indiana, making it the 18th-largest country in Europe.

Get to know Portugal

Portugal has a Mediterranean climate with warm, dry summers and plenty of sunshine. Residents and tourists enjoy urban adventures, mountain hikes, beaches, days in quiet fishing villages, and vineyards.

The Roman and Moorish influences on Portuguese culture left a rich archaeological legacy. Fairs and markets are the highlights of social gatherings, and urban centers offer a variety of entertainment. The Portuguese are renowned for being highly hospitable -- welcoming visitors with great enthusiasm. 

The service sector is vital to the Portuguese economy, accounting for over three-fifths of the total output. Chief exports of Portugal's industrialized economy are automobiles, machine tools, textiles, clothing, and wine.

The World Bank classifies Portugal as a high-income economy with the following trade agreements and alliances: 

  • CETA - Canadian-European Trade Agreement
  • EMU - Economic and Monetary Union
  • ADB - Asian Development Bank
  • European Union
  • Latin Union
  • NATO - North Atlantic Treaty Organization
  • OECD
  • OSZE
  • Schengen Countries
  • UN - United Nations
  • WTO - World Trade Organization

“Must know” if you’re hiring in Portugal without an employer of record

Entity requirements
Mandatory hiring contracts & clauses
Different compliance risks for full-time vs. contractor employees
Mandatory probationary periods
Allowable working hours & overtime wage laws
Timecard and attendance records
Required employer payroll, labor insurance, and tax payments
Discrimination protection
Notices & termination regulations

Budgeting for Portugal employees

Hiring remote Portugal professionals is smart and economical, assuming you’re fully compliant with local tax, labor, and wage laws.
Employee Classification–Full-time vs Contractor


  • Fixed work hours and salary
  • Provided equipment
  • Benefits and compensation


  • Independently working on tasks
  • No fixed hours
  • Pay depends on project

Employment Contracts

The following information on the employment contract must be provided by the employer:

  • Place of work or an indication that the work will be carried out in various locations
  • Category of the worker or a brief description of their duties
  • Date of conclusion of the contract and beginning of its effects
  • Periods of notice
  • Value and frequency of payment
  • Work hours
  • Occupational accident insurance policy

Probation Period

Three to eight months

Standard Working Hours & Overtime

Eight hours per day

  • 40 hours per week
  • Workday Overtime = 25% - 37.5% of regular salary rate
  • Weekday/Holiday Overtime = 50% of regular salary rate

Payroll Frequency


Wages & Bonuses
  • Minimum monthly wage = $765
  • 13th and 14th Month Pay

USD equivalent median salaries based on Role:

  • Data Scientist: $25,358
  • Electrical Engineer: $16,434
  • Hardware Engineer: $14,495
  • IT Manager: $26,791
  • Mobile Developer: $19,694
  • Product Manager: $28,805
  • Project Manager: $25,191
  • QA Engineer: $14,889
  • Software Engineer: $22,910
  • System Administrator: $19,590
  • UX Designer: $16,823
  • Web Developer: $20,137

Payroll Taxes & Employer Contributions
  • 11% Social Security
  • 14.5% - 48% Income Tax


Health Insurance 

  • Covered by Social Security, along with unemployment, sickness and parental benefits, disability, and pensions

Paid leave


  • 30 weeks


  • 20 days

Vacation/PTO days

  • 22 days per year

Sick Days

  • Paid leave for a total of 1,095 days

Additional Leave

  • Bereavement Leave

Additional Benefits

  • Meal vouchers
  • Transportation allowance
  • Gym allowance
  • Private health insurance
  • Private pension
  • Bonuses
  • Additional leave


Portugal celebrates 13 national (public) holidays and multiple observances a year. 

The most important fixed date holidays are

  • New Year’s Day (January 1)
  • Freedom Day (April 25)
  • 1st May – Labour Day (May 1)
  • Portugal Day (June 10)
  • Immaculate Conception Day (December 8)
  • Christmas Day (December 25)

Termination & Severance

Just Cause for Termination

  • Illegitimate disobedience
  • Breach of rights and guarantees 
  • Repeated conflict provocation with coworkers
  • Severe material damages 
  • Untrue statements without justification
  • Intentional non-compliance with health and safety at work
  • Physical violence or insults committed at the workplace to coworkers

Notice Period

  • Less than six months: 15 days
  • Between six months and two years: 30 days
  • More than two years: 60 days

Severance Pay

  • 12 days’ salary for every year of work

And a few fun facts about Portugal…

  • The University of Coimbra was founded in 1290, making it one of the world’s oldest universities.


  • Portugal is a world-class surfing destination. The country boasts a 497-mile coastline and is estimated to have 364 days of surf every year.


  • Fado, a tradition in Portugal, is based on the notion that destiny cannot be changed. This word also refers to a style of traditional Portuguese song recognized by UNESCO as part of the world’s intangible cultural heritage.


  • One of Japan’s most well-known dishes, tempura, originated in Portugal.


Portugal’s name comes from the word Porto, which means “door to the ocean.”

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