Work Authorization
Non-EU citizens need proper authorization to work in Portugal. Your work rights depend on your visa/residence permit type:
Visa Types and Work Rights
| Visa Type | Work for Portuguese Company | Self-Employment | Remote Work (Foreign Employer) |
|---|---|---|---|
| Tourist (Schengen) | No | No | No (technically) |
| D7 (Passive Income) | Yes | Yes | Yes |
| Digital Nomad | No | No | Yes |
| D2 (Entrepreneur) | No | Yes (own business) | N/A |
| Tech Visa | Yes (certified company) | No | No |
| Employment Visa | Yes (specific employer) | No | No |
Technically, working remotely on a tourist visa is not permitted. Portugal's Digital Nomad visa was created specifically for this purpose. While enforcement is limited, prolonged remote work on tourist status carries risk.
Employment Contracts
Portuguese labor law is employee-protective. Understanding contracts is important:
Contract Types
- Contrato sem termo (Permanent): Open-ended employment, harder to terminate
- Contrato a termo certo (Fixed-term): Set duration, limited renewals
- Contrato a termo incerto: Uncertain duration, project-based
Standard Employment Benefits
- Paid vacation: 22 working days minimum
- Public holidays: 13 national holidays
- Christmas bonus (Subsídio de Natal): 13th month salary
- Holiday bonus (Subsídio de Férias): Extra month salary in summer
- Sick leave: Paid (Social Security covers after day 4)
- Maternity leave: 120-150 days paid
- Paternity leave: 28 days mandatory
💡 14 Months Pay: Portuguese employees effectively receive 14 months of salary—12 regular months plus Christmas and vacation subsidies (usually paid in June and November).
Working Hours
- Maximum 40 hours/week, 8 hours/day
- Overtime limited and must be paid extra
- Right to disconnect (2021 law)
Self-Employment (Green Receipts)
Freelancers in Portugal use "recibos verdes" (green receipts) to invoice clients:
Setting Up
- Have NIF (tax number)
- Register activity at Finanças (tax office) or online
- Choose CAE (activity code) for your work type
- Register for Social Security contributions
Tax Treatment
- Regime simplificado: Simplified regime for income under €200,000/year
- Assumed expenses: 25-75% of income deducted automatically (varies by activity)
- IRS retention: 25% withheld on invoices to Portuguese companies
- VAT: Exempt if under €15,000/year, otherwise 23%
Social Security
- 21.4% of 70% of income (effectively ~15% of gross)
- 12-month exemption available for first-time self-employed
- Quarterly declarations and payments
Portugal scrutinizes "false green receipts"—freelance relationships that are actually employment. Working full-time for one client, using their equipment, and following their schedule may be reclassified as employment.
Starting a Company
Common Company Types
Sociedade Unipessoal por Quotas (Unipessoal Lda.)
- Single-member limited company
- Most common for solo entrepreneurs
- Minimum capital: €1
- Limited liability
Sociedade por Quotas (Lda.)
- Multi-member limited company (2+ partners)
- Minimum capital: €1
- Most common SME structure
Sociedade Anónima (SA)
- Public limited company
- Minimum capital: €50,000
- Required for listed companies
- Rare for small businesses
Formation Process
- Check company name: Via RNPC (National Registry)
- Draft articles of association
- Register: At Empresa na Hora (company in an hour) or notary
- Get NIF for company
- Open company bank account
- Register for Social Security and tax obligations
💡 Empresa na Hora: Portugal's streamlined company formation service. You can form a company in a few hours for ~€300-400. Faster than traditional notary route.
Corporate Tax
- Standard rate: 21% (17% for first €50,000 for SMEs)
- Municipal surcharge: Up to 1.5%
- State surcharge: 3-9% on high profits
Tech Visa Program
Portugal's Tech Visa provides fast-track work permits for tech companies and skilled workers:
For Companies
- Certification required (tech/innovation focus)
- Can sponsor foreign workers more easily
- Faster visa processing
For Workers
- Highly qualified tech roles
- Fast-track visa processing
- Path to residency
Certified Companies Include
- Tech startups
- Innovation-focused companies
- R&D centers
- Companies in designated tech parks
Startup Ecosystem
Portugal has developed a vibrant startup scene:
Startup Hubs
- Lisbon: Web Summit host city, largest ecosystem
- Porto: Growing tech scene, more affordable
- Braga: University-linked innovation
Incubators & Accelerators
- Startup Lisboa
- Beta-i
- Fábrica de Startups
- BuildUp Accelerator
- UPTEC (Porto)
Funding
- Portugal Ventures (government VC)
- Growing angel investor network
- EU funding programs
- Bank loans and guarantees via IAPMEI
Finding Work
Job Boards
- LinkedIn: Primary professional network
- Indeed Portugal: General job board
- Landing.jobs: Tech-focused
- ITJobs: Tech sector
- Net-Empregos: Portuguese language jobs
Salary Expectations
Portuguese salaries are lower than Western European average but offset by lower cost of living:
- Minimum wage: €820/month (2024)
- Average salary: ~€1,200-1,500/month
- Tech/skilled roles: €2,000-5,000+/month
- Note: Quoted as gross; taxes and SS reduce take-home
💡 Language: Many international companies operate in English, especially in tech. Portuguese language opens more opportunities and is essential for some sectors.