Employer of Record Services in Portugal

Add your new hire in Portugal

Choose GEOR as your Employer of Record in Portugal:

Onboard tech talent without opening a Portuguese entity.
Get exclusive access to vetted IT talent across Portugal.
Let local payroll and tax experts handle the complex parts.
Years of experience supporting international tech teams.
Simple terms, flexible partnership, full transparency.

Portugal

Strategic EU entrance market

Connecting companies to the European Union markets with simple setup.

Multilingual, highly educated workforce

Portuguese and English fluency, STEM strength, and high work ethics.

Legal protection for long-term work

Clear legislation surrounding workers, contactors, and freelancers.

Economy

Ranked 39th globally for ease of doing business, with a GDP of €277.5 billion (2025 projection).

Language

Portuguese (English widely used)

Currency

Euro (€)

IT salaries range

€35k–€130k/year

Local facts and pay levels

Key technology hubs	Focus areas	Avg. software developer pay
Lisbon	Fintech, AI, SaaS	€68k/year
Porto	AI, E-commerce, Software development	€64k/year
Braga	DevOps, IoT, Cybersecurity	€59k/year
Coimbra	Data Science, Research, EdTech	€58k/year
Aveiro	R&D, IoT, Telecom, Hardware	€56k/year

Note: Salary estimates include base pay plus 13th and 14th-month bonuses, are approximate, and may vary based on experience, education, and specific employer.

Select roles for your team

Languages

Python, JavaScript, Java, Go, Rust, TypeScript.

Platforms

AWS, Google Cloud, Azure, Kubernetes, Terraform.

Data

SQL, Snowflake, Apache Kafka,
dbt (Data Build Tool), TensorFlow, PyTorch

PyTorch, TensorFlow, Hugging Face, LangChain,
Apache Spark
OpenAI API

Frameworks

React, Angular, Next.js.

Cybersecurity

Zero Trust Architecture,
OWASP Standards,
SIEM Solutions,
SOC 2 Compliance.

Blockchain

Solidity, Web3.js, Truffle, Hardhat.

Soft skills

Communication, problem-solving, adaptability, teamwork, critical thinking, time management, client-focused mindset, conflict resolution, cross-cultural competence.

Already found your candidate?

We handle the legal setup so they can start quickly.

Work legislation in Portugal

What technology businesses should know about labor laws and payroll taxes in Portugal.

Labor code of Portugal

Portuguese IT benefits and leave

Foreign worker policies in Portugal

Remote work regulations in Portugal

Portuguese data and IP laws

Work termination in Portugal

Tech levy structure in Portugal

Labor law of Portugal

Labor Code – Código do Trabalho (Lei No. 7/2009)

Minimum wage and overtime

€870/month in mainland Portugal (2025). Overtime: 1.5x pay beyond 40 hours/week.

13th and 14th-month salaries

Mandatory part of the standard compensation package. Paid in June (vacation bonus – Subsídio de Férias) and December (Christmas bonus – Subsídio de Natal).

Written contracts

Required for fixed-term and temporary roles. Must detail pay, duties, hours, and termination terms.

Worker classification

Employees work under business owner direction and receive benefits. Contractors operate independently and are not entitled to employee benefits.

Equal opportunity

Discrimination based on gender, age, or other factors is prohibited in hiring, pay, and promotion.

Workplace safety

Organizations must ensure safe conditions, including risk assessments and preventive measures.

Benefits and leave in Portuguese IT

Mandatory

Annual Leave

22 working days per year; many IT firms offer 25 days to remain competitive.

Sick Leave

Paid by Social Security (Segurança Social) from day 4, covering 55%–75% of salary, depending on duration.

Parental Leave

120 days at full pay or 150 days at 80% pay, shared between parents. Fathers receive 20 mandatory days.

Optional

Private Health Insurance

Common in the IT sector for faster access to care beyond the public system.

Performance bonuses

Used to reward milestones or annual targets; bonuses up to 6% of annual salary may be tax-exempt.

Remote work support

Stipends for internet or co-working spaces.

Professional development

Monetary support for courses and conferences.

Portuguese foreign worker policies

Employer registration

Organizations onboarding non-EU/EEA nationals must inform the Portuguese Labor Authority (ACT - Autoridade para as Condições do Trabalho) before the employment begins.

Entrance and residence permit

Non-EU/EEA nationals typically require a residence visa (visto de residência) followed by a residence permit (autorização de residência) for work purposes, valid for up to one year and renewable.

Work permit scope

The permit is tied to the specific company and role. Any job change requires a new application.

Contract requirements

A written contract is mandatory, detailing job title, compensation, responsibilities, work location, and termination terms.

Salary and job category

The role must align with approved occupations and meet local wage standards. Underpayment can lead to permit rejection.

Social Security and tax registration

Foreign workers must obtain NIF (fiscal number and NISS (social security number) before employment begins.

Notification duties

ACT must be notified of any employment changes, such as terminations or role updates, within 15 days.

Remote work policies in Portugal

Teletrabalho (Remote work)

Must be formalized in writing: with location, schedule, and duties clearly defined.

Expense reimbursement

Remote work costs like electricity, internet, and equipment must be covered by the employer.

Health and safety

Remote setups must meet safety standards, with proper guidance and preventive measures in place.

Right to disconnect

Employees may not be contacted outside working hours, except for emergencies.

Remote contractors

Contractors must register with tax authorities, issue invoices, and manage VAT (IVA) and income tax (IRS).

Portuguese data and IP laws

General Data Protection Regulation (GDPR) and Law No. 58/2019

Data protection

Companies must follow GDPR and Law 58/2019 to ensure lawful, secure, and transparent employee data use.

Employee data rights

Employees may access, correct, erase, or restrict data use; data collectors must explain usage and obtain consent.

Confidentiality and IP

Trade secrets are protected by contract. IP rights usually stay with the business if stated clearly.

Non-compete clauses

Enforceable if limited to 2–3 years, fair in scope, and include compensation.

Remote work compliance

Secure handling and clear policies must be in place for remote data and system access.

Work termination in Portugal

Fair dismissal (Despedimento com justa causa)

Termination must follow legal grounds under the Portuguese Labor Code and be properly documented.

Severance pay

If dismissal lacks just cause, severance equals 12 days’ base salary per year of service.

Notice requirements

Advance notice is required unless dismissal is immediate and justified; otherwise, pay in lieu applies.

Legal protections

Dismissal due to pregnancy, illness, parental leave, or union activity is prohibited by law.

Tech levy structure in Portugal

Income tax

Progressive IRS ranges from 14.5% to 48%, withheld by the employer monthly.

Employer contributions

26.5% of gross salary goes to social security for healthcare, pensions, and family benefits.

Employee deductions

Employees contribute 11% to social security, withheld at payroll.

Self-employed taxation

Freelancers pay IRS, Social Security, and charge 23% IVA where applicable.

Equity compensation

Gains from stock options or RSUs are taxed as employment income at progressive IRS rates, upon vesting or exercise.

VAT

The standard IVA rate is 23%, applicable to SaaS, digital services, and contractor invoices. Salaries are not subject to IVA.

Why traditional recruiting takes time

Here’s what to expect when expanding your team in Portugal: contracts, deductions, and payroll setup.

Complex tax brackets

Multiple income tiers and deductions make payroll calculations time-consuming without expert help.

Heavy social contributions

Payroll in Portugal includes mandatory costs: social security, insurance, training levies.

Strict dismissal process

Letting someone go requires careful documentation and can take weeks to resolve legally.

Foreign hiring bottlenecks

Visa timelines and job role validation can slow down international onboarding.

Rigid contracts

Fixed-term agreements and benefits must follow detailed templates, with limited room for adjustment.

Data protection obligations

GDPR compliance is a continuous task that pulls legal, operational, and tech resources from your team.

Everything your team needs

Support your engineers with compliant onboarding, payroll, and benefits—all handled by our EOR.

End-to-end employment without legal gaps
Payroll, benefits, and contracts managed in line with Portuguese labor law.
HR done right from day one
We draft, maintain, and update all employment documents throughout the entire work cycle.
Experienced engineers, ready to start
Work with engineers based in Portugal and collaborate comfortably in international teams.
Stable teams, lower turnover
Our setup helps you retain staff by offering fair benefits and legal security.
Simple scaling, no extra admin
Keep growing in Portugal without changing providers or opening an office.
Permits and registration for non-EU hires
AIMA (Agência para a Imigração e Mobilidade), NISS, NIF registration, and permits.

Trusted by European tech teams

Why software engineering teams choose our Employer of Record in Portugal

96%

reduction in hiring time.

40%

savings in onboarding and operational costs.

faster entry into the Portuguese market.

92%

employee retention rate.

What EOR in Portugal covers

Our Employer of Record helps you recruit in Portugal without confusion or extra work.

Smooth onboarding for tech hires

Verified employment status, signed contract, NIF setup, and Segurança Social registration.

Accurate salary and contributions

Processed monthly with all statutory deductions included.

Complete employee support

Clear job classification, compliant contracts, and secure HR documentation under Portuguese law.

Benefits and perks

Tailored for Portugal’s tech workforce:

Private health coverage with top-tier providers
Retirement contributions via Segurança Social
Paid vacation, sick leave, and parental entitlements
Optional life and disability plans
Monthly coworking, wellness, and home office stipends
Training budgets and performance-based bonuses

Pricing

Simple Portugal EOR pricing for international companies.

Access to an exclusive talent pool
Onboarding within 7 days
Payroll and tax management
Built-in security and compliance
IP and invention rights protection
Workforce management platform

Add-ons:
Recruitment, Visa services, Premium benefits, Dedicated HR team

Employer of Record

$499

per employee/ month.

A basic EOR package with flexible service add-ons.

Inside developer pay in Portugal

Compare annual developer salaries by level and city across Portugal.

City	Junior	Mid-level	Senior
Lisbon	€24k	€35k	€50k
Porto	€22k	€32k	€45k
Braga	€20k	€30k	€43k
Coimbra	€20k	€29k	€41k
Faro	€19k	€28k	€40k

Note: Estimates include base salary plus typical annual bonus. Employer of Record costs are not included.

Stress-free hiring in Portugal

Portugal is paradise—until you try to hire. Bureaucracy moves slowly, and most companies waste months onboarding a single person. GEOR clears the admin maze so your engineers can start next week. Let us show you how simple it can be.

Client Feedback

Daniel Urmañn

Founder

Diib

The team’s professionalism and technical expertise were unmatched. They met our intricate needs with tailored solutions, guaranteeing reliability and efficiency, while modern technology was expertly incorporated into our systems.

Joe Purtle

Chief Operations Officer

Doka USA

The team demonstrated unmatched expertise and dedication, seamlessly integrating innovative technology with our advanced platforms to enhance overall performance.

Maxi Schellhas

Director General

Randstad, Argentina

GEOR’s team is a mastermind of innovation! Their cutting-edge solutions revolutionized our analytics, providing valuable insights and improving our decision-making.

Jim Darter

President

Sandpiper Hospitality

I love the fact that they are always ready to help and put a lot of effort into every aspect of their work. GEOR was helping source, review and iterate candidates suited for our roles

Manu Prakash

Managing Director | Head Debt & Capital Markets

CredAble

Recruitment Redefined’s biggest strength was the quality of the service they provide. The team followed through with their commitments and created a fantastic experience for candidates.

Peter Arduini

President & CEO

GE HealthCare

The speed and quality of profile they provided, lots of matching candidates were impressive. They help us to strengthen our team and to fill in needed position with experienced member.

Victor Fei

Founder & CEO

Ormi Labs, Inc.

We’ve been truly impressed with the quality of candidates they offer. Thanks to them we were able to secure deals with top blockchain providers and decentralized finance projects.

Why GEOR is a better fit

Why our Employer of Record is safer and easier for your software development team.

Pros

Cons

Velocity Global

Visa experience, global templates, support for large expansions.

High cost, no dev expertise, slow onboarding.

Skuad

Fast setup, clear pricing, automated platform.

No local presence and recruiting, limited for tech teams.

Boundless

Transparent pricing, clear guidance on local labor rules.

Lacks infrastructure and IT expertise.

GEOR

Built for scaling tech teams, local experts, developers ready in 7 days.

Best fit for tech, less tailored to non-digital industries.

Expand your team in Portugal

As a European Union member, Portugal has strong labor protections and reliable digital infrastructure, while offering competitive costs. Select team roles from our pre-vetted database of tech specialists and onboard them within a week. Or if you need your engineers to start immediately, we have you covered in all scenarios. We act as your legal local operator, removing bureaucracy headaches, slow approvals, and unexpected obstacles. Let us take care of everything from work permits, to health insurance and payroll, so you can enjoy a smooth team expansion.

GEOR

Hire here.

Breathe easier.

FAQs

What is an Employer of Record (EOR) in Portugal?

An EOR in Portugal is a local partner that onboards and manages your team in Portugal, handling contracts, payroll, and contributions for you.

Why do companies use an EOR in Portugal?

To avoid opening a local entity and let a trusted Employer of Record handle tax and employment tasks.

How quickly can developers be onboarded in Portugal?

With our Employer of Record, local developers can be onboarded in around 7 days. For non-EU talent, timelines depend on AIMA processing (typically 3–6 months).

Do your EOR services support remote tech teams in Portugal?

Yes. We manage compliant telework contracts, reimbursements, and data handling for fully or partially remote developers.

What benefits does an EOR offer in Portugal?

Our Employer of Record provides public and private health coverage, paid leave, social security, and 13th and 14th salaries.

How are payroll taxes handled through EOR?

We calculate and file IRS, social contributions, and bonuses according to Portuguese rules—no action needed on your side.

Do EOR onboard both full-time employees and contractors?

Yes. We handle employment contracts directly and help structure freelance agreements with valid NIF, NISS, and IVA —without assuming tax responsibility.

Can non-EU developers be sponsored through an EOR?

Yes. We guide your team through AIMA registration and ensure legal contracts for work permits.

How does an EOR manage employee data under GDPR?

All data is stored securely and processed under GDPR and Portuguese law, with standard confidentiality clauses in place.

Which companies use EOR in Portugal?

Mostly tech startups, SaaS, FinTech, MedTech, and AI scaleups, and global product teams expanding into Europe without setting up a local branch.

Payroll and PEO services in Portugal

You don’t always need an EOR. Explore lighter ways to recruit and process payments.

IT Payroll in Portugal

Pay your Portuguese team easily, even if you’re abroad.

PEO in Portugal

Based in Portugal and want to delegate HR entirely? We’ll handle the hard parts.