Portugal has a population of more than 10 million people, with leading industries in the textile, paper, and chemical sectors. There are many types of business entities available in Portugal including Public and Private Limited Liability, Single-Member Private Limited, and more.

Companies must register with the National Companies Registry Office in order to have the company name approved. Companies must also obtain a tax number from the Registro Nacional de Pessoas Colectivas, with the a fiscal identification number and Articles of Association must be provided to authorities in order to start the business.

Labor and Payroll Considerations

  • Industry and Sector-level agreements are the most common forms of Collective Bargaining Agreements
  • Minimum wage is €600 per month excluding holiday pay
  • When an employee is terminated, a Declaração de Situação de Desemprego form must be submitted to the social security authorities with the reason for termination indicated
  • Income tax and social security tax are withheld from empoyee pay, filed on the 20th of each month
  • Employers must advertise an open position with the Employment Centre for 30 days and if a Portuguese or EU citizen is not hired the employer can seek permission to hire a foreign national
  • Foreign workers who are not EU citizens need an employment residence visa, residence permit, and work permit to begin work
  • Foreign workers must register with local tax and social security offices and apply with the local immigration office for a residence permit
  • The government of Portugal published the order that guarantees workers in the private sector, payment of 100% of their wages from the first day of absence, for fourteen days, in the case of isolation due to the danger of contagion as decided by the health authorities. This order applies for those who are unable to work from home, for those employees who are able to work from home, this does not apply
  • For employees who contract COVID-19, the standard sick policy applies

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