Hiring in Portugal? Plan the route before the first offer letter.

Portugal offers attractive talent costs and a strong tech ecosystem, but the Código do Trabalho, the 14-month salary and just-cause dismissal make getting your model wrong genuinely costly in time, money, and compliance. We help you choose the right way to hire, place you with the right partner, and stay alongside you for the life of the relationship.

  • Independent advice
  • Vetted partners
  • On your side at renewal

Easy to love, easy to underestimate.

Portugal is a Western European EU and eurozone member: attractive talent costs, a strong tech ecosystem in Lisbon and Porto, incentive regimes for foreign workers, and a highly educated, English-proficient workforce.

01

Cost-competitive EU access

Full EU market access at lower salary costs than Western Europe, with a large multilingual talent base and a fast-growing tech sector in Lisbon and Porto.

02

Protective labour market

The Código do Trabalho, just-cause dismissal rules, the 14-month salary and 23.75% employer social security mean your employment structure has to be chosen with care.

03

Independent expert advice

Not sure whether you need EOR, PEO, payroll, or your own entity? We map your headcount, timeline, and risk profile and give you a clear recommendation, not a product pitch.

Four ways to hire in Portugal. The honest comparison is below.

Most businesses arrive having already decided, and often decided too quickly. Here is the honest version of each route. When one fits, the detailed guide is one click away.

Employer of Record

An EOR partner becomes the legal employer of your Portuguese staff, handling the contract, payroll, tax, and compliance, while you direct the work. Operational in days, no entity needed. Best for testing the market or hiring a small team.

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Global Payroll

For when you already have a Portuguese entity, or want to consolidate payroll across several countries under one process. You stay the legal employer; a specialist partner runs compliant Portuguese payroll, including the 14-month cycle.

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Entity Formation

Your own Portuguese company (an Lda). Full control and a local presence, with no per-employee fees, but you cannot employ anyone until Segurança Social and tax registration complete, and the ongoing obligations are real. Right when the headcount and permanence justify it.

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PEO Services

A co-employment model where you and a partner share the employer role. Less common in Portugal than EOR, and right only for specific structures. We will tell you honestly if it fits, or if EOR is simpler.

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Portugal at a glance

Currency

Euro (EUR). A founding eurozone member; pay, social contributions, and tax all settle in euros.

Minimum wage (2026)

EUR 920 per month across 14 payments per year (2026), the statutory floor. Portugal pays 14 months, not 12.

Employer costs

Employer social security is 23.75% of gross salary (no ceiling). The employee pays a further 11%.

Leave & Notice

22 working days statutory annual leave. Notice on resignation is 30 to 60 days by tenure; employer notice on objective grounds is 15 to 75 days.

Hiring in Portugal: what people ask us

The questions we are asked most about hiring in Portugal.

What is the fastest way to hire someone in Portugal?

An Employer of Record. Your hire can start in days, with a compliant Código do Trabalho contract from day one and no entity to set up. It is the lowest-risk way to test the market or place a small team. The detail is on our Portugal EOR guide.

Do I need a Portuguese entity to hire?

No. With an EOR you can employ people in Portugal without your own company. You only need an entity (an Lda) when you are committing to a permanent, larger presence, and we will tell you honestly when that point arrives.

A detailed Código do Trabalho, just-cause dismissal rules, the 14-month salary, and 23.75% employer social security. None of it is a problem when handled correctly, which is the point of getting the model right at the start.

We are independent: we assess what you actually need, place you with the right vetted partner, secure pricing you will not get going direct, and stay on your side to escalate or renegotiate. You get advice, not a product pitch.

Let’s scope your Portugal hire.

Tell us who you want to hire and where you are headed in Portugal. One conversation maps your options, flags the risks, and usually gets you to a better answer, and better pricing, than going direct. No pitch.

Tax and labour data verified June 2026 (Segurança Social, AT, OECD). Figures change; we confirm the current position when we scope your hire.