HR, PEO & Employer of Record (EOR) Services in Portugal

Introduction

Portugal has rapidly emerged as one of Europe’s most attractive destinations for business expansion combining a skilled workforce, competitive labor costs, and a thriving tech and startup ecosystem.

With its strategic location bridging Europe, Africa, and the Americas, Portugal offers access to key markets while maintaining a business-friendly environment supported by government incentives. From fintech and renewable energy to digital innovation, the country is positioning itself as a hub for forward-looking industries, making it an ideal choice for companies seeking sustainable growth.

EOR & PEO Solutions in Portugal

If you’re looking to hire employees in Portugal without setting up a legal entity, using an Employer of Record (EOR) like Empleyo is the simplest and most compliant path forward. An EOR in Portugal acts as the official legal employer on your behalf, managing everything from payroll and HR administration to employment contracts and statutory employee benefits.

This model allows you to expand into Portugal quickly, while remaining fully compliant with local labor laws without the complexity or cost of registering a local entity.

What Is an Employer of Record in Portugal?

An Employer of Record Portugal (also known as an EOR provider) enables businesses to hire and onboard Portugal employees without having to incorporate in-country. The EOR manages:

You continue to oversee your team’s day-to-day tasks, while the EOR service handles legal obligations as the official employer on paper.

What’s the Difference Between EOR and PEO?

A Professional Employer Organization (PEO) typically supports businesses that already have a registered entity in Portugal, offering co-employment solutions for HR, payroll, and benefits. An EOR, however, is ideal when you don’t have a legal presence in Vietnam but still want to hire full-time staff.

Whether you choose an EOR or PEO depends on your Portugal hiring strategy, budget, and long-term plans for the market.

Benefits of Using an EOR Service in Portugal

By using an EOR solution, companies can confidently build their team in Portugal, access top talent in Portugal, and stay focused on business growth without getting tangled in bureaucracy.

Hiring in Portugal

Portugal is a thriving market with a growing pool of skilled professionals, making it an ideal destination for businesses looking to expand globally. But to hire in Portugal successfully, it’s important to understand your options — especially when you don’t have a legal entity in Portugal.

That’s where using an Employer of Record in Portugal makes all the difference.

Your Hiring Options in Portugal

Businesses have two main paths to hire employees in Portugal:

The second option is faster, lower-risk, and ideal for companies that want to test the Portuguese market, launch quickly, or hire remote employees without permanent infrastructure.

Why Use an EOR to Hire in Portugal?

This approach is especially useful for startups, global teams, and growing businesses that need to hire quickly and remain fully compliant.

Employment in Portugal

Understanding how employment in Portugal works is key to managing your team successfully and staying compliant. Whether you’re hiring directly or using an Employer of Record (EOR), companies must follow Portuguese labor laws closely — especially when it comes to employment contracts, payroll, and employee benefits.

That’s why many growing businesses choose to use an EOR in Portugal to handle these responsibilities with confidence.

Employment Contracts in Portugal

All employees in Portugal must be hired under a written employment contract, clearly outlining the job role, salary, benefits, working hours, and duration of employment. Contracts must comply with the Labor Code of Portugal, and are usually signed before or on the first day of work.

By working with a Portugal employer of record, you can ensure that all employment contracts in Portugal are properly structured, compliant, and aligned with local requirements without having to hire a full in-house HR team.

Payroll & Employer Contributions

Payroll in Portugal involves more than just paying a monthly salary. Employers are required to withhold income tax and make contributions to:

These deductions and employer contributions are calculated based on the employee’s gross monthly salary, and must be submitted on time to remain compliant. An EOR in Portugal handles this for you, managing all payroll, tax filings, and reporting on your behalf.

Employee Benefits and Leave

Portuguese labor law mandates several employee benefits, including:

Using an employer of record service ensures your team in Portugal receives all required benefits and that your business remains fully compliant with Portuguese employment law.

Termination & Notice Periods

Ending an employment contract in Portugal requires strict compliance with statutory notice periods and adherence to well-defined termination procedures under Portuguese labor law. Notice obligations vary depending on contract type and length of service, while dismissals must be based on lawful grounds such as redundancy, disciplinary reasons, or mutual agreement. Employers must ensure due process is followed to avoid legal disputes. When partnering with an Employer of Record (EOR), these requirements remain the same, with the EOR ensuring that notice periods and termination practices are fully compliant and managed with professionalism.

Visas & Permits in Portugal

If you’re planning to hire employees in Portugal or bring in foreign talent, understanding Portugal’s visa and permit requirements is critical. Navigating these processes can be complex, but working with a trusted Employer of Record (EOR) in Portugal makes it much easier.

An experienced EOR provider will ensure all permits are handled legally, so you can focus on building your team in Portugal with confidence.

Work Permits for Foreign Employees in Portugal

Foreign nationals who plan to work in Portugal must obtain the appropriate work permit or visa before commencing employment. The process often involves securing sponsorship from a local employer and meeting specific regulatory requirements, which can be complex and time-sensitive. An Employer of Record (EOR) simplifies this by managing the entire compliance process—ensuring that foreign employees are properly authorized to work while allowing businesses to expand quickly and legally without establishing a local entity.

Types of Visas for Foreign Talent

There are several types of visas used to work or do business in Portugal, including:

Each visa type has specific use cases, duration limits, and documentation requirements. If you’re looking to hire in Portugal or send international staff temporarily, an EOR Portugal solution helps you identify the right visa and manage the application process end-to-end.

Business Permits for Foreign Companies

To operate directly in Portugal, foreign companies typically need to register a legal entity in Portugal and apply for a business license. This can be a time-consuming process that includes office registration, investment approvals, and compliance with Portuguese labor laws.

Alternatively, you can use an EOR in Portugal to bypass the need for a local entity. The Portugal employer of record is already registered and authorized to employ staff and manage payroll, contracts, and local compliance making it easier and faster to hire employees in Portugal.

Why Visas & Permits Matter for Global Hiring

If you’re hiring foreign employees in Portugal, or placing international staff in-country, it’s essential to stay compliant with immigration laws. The right employer of record service helps you:

Common Questions on EOR in Portugal

How quickly can employees start working in Portugal through an EOR?

The timeline depends on whether the employee already has the right to work in Portugal; EU citizens can start almost immediately, while non-EU employees may need several weeks to months for visa and work permit approvals, though an EOR streamlines the process significantly.

What employment contracts does an EOR use in Portugal?

An EOR in Portugal drafts contracts fully compliant with Portuguese labor law, typically either indefinite (permanent) or fixed-term contracts, including all mandatory terms such as salary, working hours, probation, leave entitlements, and termination conditions.

Is remote work possible under an EOR in Portugal?

Absolutely, employees can work remotely within Portugal under an EOR contract, though the arrangement must respect local telework rules, including health and safety obligations and cost reimbursements for remote setups when required.

How does an EOR ensure compliance with Portuguese labor laws?

The EOR monitors legal updates, manages payroll and contracts in line with Portuguese labor code, handles social security filings, and advises on working time, leave, and termination rules, ensuring that the client avoids fines or disputes.

Can an EOR hire both full-time and part-time employees?

Yes, an EOR can legally employ both full-time and part-time workers in Portugal, drafting the appropriate contracts with proportional benefits, leave entitlements, and contributions in accordance with national labor legislation.