Payroll Services in Portugal

Compliant Portuguese payroll built for tech hiring. Make payments without opening a local office.

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Trusted Insight

Smart payroll in Portugal

Pay salaries, calculate deductions, and administer benefits to your tech team in Portugal.

  • Avoid lengthy onboarding
    We handle registration and payroll in 7 days.
  • Easy calculations and reporting
    Run monthly salaries, deductions, and filings.
  • Legal EU salaries
    Pay your team according to Portuguese law.
  • Your Intellectual Property protected
    Contracts cover confidentiality and ownership.
  • Tech sector benefits, remote-ready
    Match your developer expectations.
  • Set the size of your team freely
    Hire more or fewer people anytime.

Portugal

Strategic EU location with stable digital infrastructure.
Highly-skilled multilingual international teams from around the world.
Strong labor protections and clear payroll rules.
GDP

€277.5 billion (2025 projection)

Language

Portuguese (English widely used)

Currency

Euro (€)

Software developer’s salary range

€35k – €130k/year

Payroll taxes in Portugal

IRS (income tax)

14.5%–48%, withheld monthly

Training levy

0.75% employer-paid

Labor accident insurance

around 1% employer-paid, mandatory and managed through private insurers

Social Security (Segurança Social)

23.75% employer-paid
11% employee-paid

Paying developers in Portugal?

We handle it smoothly and on time.

Freelancer tax (self-employed)

Subject to IRS and 23% VAT (IVA)

Reporting

Monthly salary and contribution reports submitted to Segurança Social and AT (Autoridade Tributária)

Labor law in Portugal

Payroll cycle

Monthly

Wage

Minimum wage in 2025:
€820/month (mainland).

Overtime

Paid at 1.25x–1.75x base rate, depending on hours and timing.

Payslip

Recibo de Vencimento issued digital or on paper, detailing salary, deductions, and legal references.

Benefits and leave in Portugal

  • Public healthcare and pension via employer social security contributions
  • 22 days of paid vacation per year, plus national holidays
  • Mandatory 13th and 14th-month salaries paid in summer and December
  • Parental leave: 120–150 days shared between parents; 20 mandatory days for fathers
  • Optional perks: private health insurance, meal cards, coworking, and internet stipends

Tech payroll
in Portugal: essentials

If you are paying salaries to your software development teams in Portugal, these guides will help you understand how to classify them correctly and meet Social Security (Segurança Social) obligations.

Classification of tech workers

Employees and independent contractors

When roles are set up properly, you avoid fines, surprise payments, and unnecessary legal hassle. Getting classification right is essential.

Employees (trabalhadores por conta de outrem)
Definition
​​Hired under a contract that follows Portuguese Labor Code (Código do Trabalho), with all standard employee rights included.
Key rights and benefits:
  • Public healthcare and pensions via Segurança Social
  • 22 paid vacation days plus national holidays
  • 13th and 14th salaries (holiday and Christmas bonus)
  • Parental and sick leave
  • Notice period and severance rights upon dismissal
Work structure
Employees follow company schedules, report to managers, and use tools provided by the team.
Common roles
Backend Developers, Data Scientists, QA Engineers, UI/UX Designers, Technical PMs, HR or Finance Support
Independent contractors (trabalhadores independentes)
Definition
Self-employed professionals working under service contracts (prestação de serviços), not covered by labor law protections.
Tax registration
Contractors register with AT (Autoridade Tributária e Aduaneira), get a NIF (tax number), and send invoices. They handle their own taxes, IVA (VAT), and social security through Segurança Social.
Work structure
They work independently, choose their own schedule, and use personal equipment. Contractors are not managed like part of the team.
Common roles
Freelance Developers, Interim CTOs, DevOps Consultants, Technical Writers
Contractors in Portugal

In Portugal, the type of work matters more than location. Make sure contractors aren’t legally employees.

When contractors are reclassified

A contractor may be seen as an employee if:

  • They follow a set schedule set by the company
  • They use company systems or tools
  • Their tasks are reviewed or directed by managers
  • They work primarily for one client
Risks for remote tech roles

Remote status does not prevent reclassification. A developer may still be considered an employee if:

  • They attend daily team calls
  • Their deliverables are subject to approval
  • They use internal systems like Slack or GitHub
  • They are paid monthly or by deliverable
Off-site work in Portugal

Remote employees in Portugal need formal contracts and full registration for payroll, taxes, and rights protection.

Legal work status
Employees must be residents of Portugal or the EU, or have a legal permit to live and work. If the job ends, this may affect their status in the country.
Work tools and expenses
Companies cover reasonable costs like internet, electricity, and equipment for remote work. These details are stated in the employment contract.
Health and safety at home
Employers need to ensure remote work safety under Decreto-Lei n.º 101-E/2020. This includes ergonomic checks, risk prevention, and health access.
Data use and security
Employees follow secure access rules, and data use must comply with GDPR and Lei n.º 58/2019.
International data access
Remote teams using U.S. tools need safeguards like Standard Contractual Clauses (SCCs) for legal data use.
Payroll obligations
Remote work doesn’t remove payroll duties. Contracts, taxes, and contributions must still be reported in full.
Equity and stocks in Portugal

Some tech companies in Portugal include equity in pay. To ensure compliance, equity is reported and taxed like regular income.

Stock options and RSUs
Stock options, RSUs, and phantom shares are allowed in Portugal and taxed as income when they vest or are exercised.
Reporting to tax authorities
Equity must be reported in monthly payroll to the AT. Values are added to gross salary and shown on each payslip.
Simple alternatives
Some firms avoid complex equity plans by offering bonuses linked to growth milestones. These are easier to manage and report.
Tax and social charges
Equity gains are treated as income, with full social contributions applied. The total value appears on the payslip.
Foreign equity grants
Even if the grant comes from a company abroad, the employee’s income is declared in Portugal.
Payslips in Portugal

​​Payslips (Recibo de Vencimento) are shared with each employee on or before payday. Digital or printed, they need to clearly show all the details.

Each payslip must include:

  • Gross salary
  • Net pay after tax and deductions
  • Breakdown of IRS and social security
  • Pay period dates
  • Bonuses, allowances, and holiday pay
  • Company and employee tax IDs (NIF, NISS) and addresses
Payroll specifics in Portugal

Here are some aspects companies need to know to get payroll in Portugal right from the start.

13th and 14th-pay are prorated
If paying 12 times a year, 13th and 14th-month salaries are reflected in contracts, paid proportionally, and shown in monthly payslips.
No flat tax for contractors
Freelancers sending invoices (recibos verdes) are taxed progressively, with monthly IRS withholdings and possible IVA obligations.
Bonuses are separate from salary
Bonuses (prémios) are listed separately from base pay and taxed on their own.
Meal allowance is tax-free
If the meal allowance (subsídio de alimentação) is paid on a card instead of cash, the tax-free limit is higher.
Payslips list all deductions
Optional perks or bonuses are broken down line-by-line on the recibo de vencimento, including meal cards, insurance, or internet stipends.
Rules for digital payslips
Portugal requires either qualified e-signatures or certified payroll software approved by the Tax Authority (AT).
Registering international teams
Developers working across borders may need separate declarations and fiscal IDs, especially if billing in multiple countries.
Payroll data retention
Payroll data is stored for 10 years. This includes all payslips, declarations to Segurança Social, and related files.

Why Portuguese payroll is challenging

Payroll in Portugal requires precision. Small mistakes often turn into time-consuming and costly fixes.

Control cost

Salary alignment

The big difference between tech pay and legal minimums may raise questions.

Payslip mistakes

Each payslip must follow the rules and include all details.

Cost savings and control

Social security filings

Errors in contributions can delay payroll or cause checks from authorities.

Streamlining remote onboarding

Leave and bonus tracking

13th and 14th salaries, vacation, and sick days must be calculated correctly.

Contractor misclassification

If a freelancer works like a full-time employee, this can cause legal disputes.

Remote work duties

Employers must cover work-from-home costs and follow remote setup laws.

Data handling

Tech teams must follow GDPR rules when working with client or company data.

Get individual offer

Team trust

Late or wrong payments hurt morale and increase pressure on your internal resources.

Built for smooth operations

We understand both local law and the real needs of tech teams.

Registration and filings

We handle registration, contributions, and filings in one clear monthly cycle.

Proper classification of workers

Guidance to help you distinguish employees from contractors and avoid compliance risks.

Payroll delivered every month

Accurate calculations, deductions, and payslips delivered on time.

Equity, shares, and bonuses

We include equity and bonuses in payroll reports and keep everything aligned with fiscal regulations.

Flexible benefits add-ons

Set up perks, such as private health, food vouchers, or stipends to support your tech team.

Complete data security

Your data is encrypted, stored securely, and handled according to Portuguese standards.

Trusted payroll provider in Portugal

You don’t need in-house HR. We handle all the paperwork delays and make sure your developers are paid on time and treated fairly. We’ve done this hundreds of times.

96%
reduction in hiring time.
40%
savings in HR and operational costs.
4x
faster market entry.
92%
employee retention rate.
Flexible payroll pricing

Our basic package is ideal for early-stage hiring or growing your team in Portugal.

Basic
  • Onboarding within 7 days
  • Payroll processing
  • Pension, social fees, and reporting
$499

per employee/ month.
No hidden fees or extra charges.

Pay IT talent
in Portugal

Start running payroll with full compliance.
We make all the filings for you—so you can pay your team stress-free from day one.

Contact us_Tamuna

Client Feedback

Stephen Smith
Stephen Smith
Co-Founder and CEO
NOCD

Everything was smooth, each week was full pipeline in order to conduct interviews non-stop. We are very grateful to the team that worked with us, and we wish the same results in other projects.

Peter Arduini
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.

Aaron Larson
CEO
Midwest Evaluation and Research

I was surprised at how quickly two recruits, sourced in just a few weeks, delivered an MVP. The team did an excellent job finding the perfect candidates for the job.

Allen Wright
Allen Wright
Senior Vice President
HealthTrust Performance Group

Fantastic, constant communication and exchange of information, high efficiency in the execution of tasks, speed in action great cooperation and mutual understanding. I really like the quality of the candidates they were able to bring.

Greg Tearne
Greg Tearne
Chief Executive Officer
Altapac Group

They go above and beyond with their service delivery. My initial expectations have not only been met but exceeded to a level I didn’t think possible.

Evan jacob
Evan Jacob
Product Manager
Stripe

Working with GEOR labor temp agency to develop and integrate software solutions for Stripe has been an absolute game-changer for our business. GEOR proved to be the ideal choice for this task.

JJ Garofalo
JJ Garofalo
Chief Executive Officer
Legal Resources

They did a great job! Plan to use them in the future for more hiring. I like how they ask a lot of questions about what we needed, and then followed up quickly with results.

David C Peterson
David C Peterson
CTO
PebblePost

The GEOR team was essentially an extension of our team. They found highly skilled engineers to manage core project goals, supporting the development of a scalable and reliable platform.

Compare payroll experts in Portugal

Most payroll providers in Portugal offer general tools. We’re fully local, tech-minded, and directly involved.

Feature GEOR Safeguard Global Parakar Horizons
Local knowledge Based in Portugal, with on-the-ground team Covers many countries, less local detail Based in Portugal, solid HR knowledge Some local understanding, but mostly remote
Payroll accuracy Full-cycle Portuguese payroll, local filings handled Standard templates across countries Portugal-specific processes, strong setup Basic coverage, manual checks may be needed
Tech hiring focus Built for IT: engineers, devs, AI specialists Broad industries, no tech-specific features Supports some tech teams, not specialized General focus, tech is not core
Equity and bonuses Supports stock, RSUs, performance bonuses Limited options for tech equity Case-by-case, not structured Little to no support for equity structures
Support approach Local HR, real answers, fast turnaround Slower, ticket-based global support Friendly support with HR know-how Delayed replies, not tech-oriented

Reliable payroll company in Portugal

With 15+ years of experience in global hiring and tech operations, we understand what matters. GEOR manages payroll in Portugal without confusion or delays. We understand your pacing, your needs, and we already have solutions for your blockers. See how smooth scaling can be.

GEOR

Moving as fast as you.

Easy, intelligent, and secure.

FAQs

How is GEOR better than other payroll providers in Portugal?

We are a Portugal-based payroll company and offer local guidance, not just automation. Your payroll is managed by real people who understand how everything works here.

Can I run payroll in Portugal without a local company?

Yes, you can onboard, pay, and support workers without opening a local entity.

How is payroll in Portugal different?

Payslips must follow strict format rules, and all reports go to tax authorities each month.

Can GEOR support global teams?

Yes, we help international companies manage payroll in Portugal smoothly, staying legally aligned.

What payroll taxes in Portugal does GEOR manage?

We calculate and file income tax (IRS), social security, and all required contributions.

Does your Portuguese payroll company support equity for IT specialists?

Yes, we integrate stock options, RSUs, and bonuses into payroll filings so they’re reported and taxed correctly.

Can you manage payroll for remote and hybrid teams?

Yes, we support remote work contracts, expense reimbursements, and data security.

Do I need a local HR team to run payroll?

No, you don’t need in-house staff. Our payroll services in Portugal include onboarding, salary payments, and benefits.

Is employee data secure with GEOR?

Yes, we follow GDPR and Portugal’s data laws, using encrypted systems and secure payslip delivery.

Can GEOR support both employees and contractors?

We handle both employment contracts and compliant invoicing for independent professionals.

How do you know if someone is an employee or contractor?

We use the law to assess work structure, control, and payment terms.

How do contractors handle taxes in Portugal?

Freelancers register with the AT, issue invoices, and manage their own IRS and VAT.

How are payslips delivered in Portugal?

Each employee receives a recibo de vencimento by email or via platform. It shows gross pay, deductions, and all required tax details.

Who typically works with a payroll company in Portugal?

Mainly tech startups, SaaS teams, and international companies building developer teams in Portugal or expanding across the EU.