The Wayli Guide to
Working in Portugal

Portugal has become an attractive destination for expats seeking new professional opportunities and a high quality of life. Understanding the local job market, employment regulations, and tax implications is essential for those looking to work in Portugal, whether as employees or business owners. This guide provides an overview of working in Portugal for expats, helping you navigate the professional landscape and make informed decisions about your career.

• Job Market in Portugal
• Working for Portuguese Companies
• Working for UK Companies
• Business Ownership and Self-Employment
• Work Permits and Visas
• Useful Resources for Expats

While Portugal's economy is diverse, some industries are particularly prominent and may offer more job opportunities for expats, such as:

• Tourism and hospitality
• Information technology and software development
• Renewable energy
• Engineering and manufacturing
• Finance and business services

Expats seeking employment in Portugal can use a variety of job search resources, including:

• Online job portals: Websites such as LinkedIn, Indeed, and Glassdoor offer job listings and networking opportunities.
• Recruitment agencies: Specialised recruitment agencies can help match your skills and experience with suitable job opportunities.
• Networking: Attending industry events, conferences, and local expat meetups can help you expand your professional network and uncover job opportunities.

Employment contracts in Portugal are typically written and can be for an indefinite or fixed term. Contracts should include key details such as job title, salary, working hours, and any benefits provided by the employer.

Employees in Portugal are entitled to certain rights and benefits, including:

• Minimum wage: As of Jan 2023, the minimum wage in Portugal is €760 per month. However, actual salaries will vary depending on the industry and job role.
• Working hours: The standard workweek in Portugal is 40 hours, with a maximum of 8 hours per day.
• Annual leave: Employees are entitled to a minimum of 22 days of paid annual leave, in addition to public holidays.
• Sick leave: Employees are entitled to paid sick leave, with the amount and duration of benefits depending on the length of service and the nature of the illness.
• Maternity and paternity leave: Female employees are entitled to 120 days of paid maternity leave, while male employees are entitled to 20 days of paid paternity leave.

Expats may have the option to work remotely for a UK-based company while living in Portugal. Remote work allows you to maintain your employment with your current company, while enjoying the benefits of living in Portugal. However, it is essential to understand the tax implications of working remotely, as well as any requirements related to residency and work permits.

Another option for expats is to work for a UK company on a secondment or international assignment in Portugal. In this scenario, you would remain an employee of the UK company but work in Portugal for a specified period. This arrangement may have different tax and legal implications, and it is crucial to consult with a tax advisor and your employer to ensure compliance with all applicable regulations.

Expats interested in starting a business or becoming self-employed in Portugal must follow specific procedures, including:

• Choosing a business structure: Popular business structures in Portugal include sole proprietorship (Empresário em Nome Individual), limited liability company (Sociedade por Quotas), and public limited company (Sociedade Anónima).
• Registering the business: Register your business with the Portuguese Tax Authority, Social Security, and the National Registry of Companies (Registo Nacional de Pessoas Coletivas).
• Obtaining necessary licenses and permits: Depending on the nature of your business, you may need to obtain licenses or permits from local authorities.

Business owners and self-employed individuals in Portugal are subject to income tax, social security contributions, and potentially, value-added tax (VAT). It is essential to understand your tax obligations and maintain accurate records of your income and expenses.

• Income tax: Self-employed individuals and business owners are subject to progressive income tax rates, ranging from 14.5% to 48%, depending on your annual income.
• Social security contributions: Self-employed individuals are required to pay social security contributions, typically ranging from 21.4% to 25.2% of their income.
• VAT: If your annual turnover exceeds €12,500, you may need to register for VAT and charge it on your goods and services. The standard VAT rate in Portugal is 23%, with reduced rates of 13% and 6% for specific goods and services.

Expats from non-EU/EEA countries must obtain a work permit and visa to work legally in Portugal. The type of permit and visa required will depend on the nature and duration of your work. Common work permits for expats include:

• Temporary Stay Visa (Visa de Estada Temporária): For short-term work assignments, valid for up to six months.
• Residence Visa (Visa de Residência): For long-term work assignments, valid for one year and renewable.

EU/EEA citizens do not require a work permit or visa to work in Portugal but may need to register their residence if staying for more than three months.

Expats seeking information and support related to working in Portugal can turn to various resources, such as:

• Embassy and consulate services: Many embassies and consulates provide information and support for expats, including guidance on work permits, visas, and local employment regulations.
• Expat forums and websites: Online communities offer valuable insights and advice from fellow expats who have navigated the professional landscape in Portugal.
• Local business and networking organisations: Joining local business organisations or attending networking events can help you expand your professional network and uncover job opportunities.

Working in Portugal offers expats the opportunity to advance their careers while enjoying a high quality of life. Understanding the local job market, employment regulations, and tax implications is crucial for a successful professional experience in the country. This guide serves as a starting point, but it is essential to consult local experts and resources for any specific concerns or questions.