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Adm In ME: Portugal


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Payroll in Portugal

We are your local Portuguese payroll & HR administration partner that can help you start and run your business hassle free in Portugal. We offer services both to newcomers and established companies. Our payroll & HR administration services are fully compliant and up-to-date with the Portuguese regulations. We offer full scope services including:

  • Receiving monthly payroll input in any format (i.e. email, interface, hard copies)
  • Calculations of compensation, taxes and Social Security contributions
  • Payslip preparation, including multi-lingual
  • Preparation and execution of net salary payments to employees
  • Preparation and delivering social contribution (TSU)
  • Registry of sickness, maternity & paternity certificates
  • Creation of Accounting File to upload into your financial ERP system
  • Management reports (Payroll Journal Details, Employee Wage type matrix, Payroll summary, Net To Pay analysis, Wage type differences between two periods)
  • Preparation of statutory annual reports (Modelo 10, RelatórioUnico)
  • Processing joiners (including registering their details with the relevant authorities – Social Security)
  • Processing leavers (working certificate, unemployment certificate, communication to the Social Security)

Expanding your business to Portugal

In most cases, in order for your company to operate in Portugal, you need to set up a legal entity. There are some exceptions in accordance with some agreements signed between Portugal and some countries (outside the EU). The process of creating a legal entity is very simple and can be done in 1 business day, if the legal representative of the company is present, if not this process may take between 10 and 30 days. Both the Tax Authority and the Social Security have secure online portals where all the communication is done.

Planning to hire in Portugal? 

Employment in Portugal is highly regulated. Besides general rules and laws, each job category is regulated by specific Collective Agreements called Contrato Coletivo de Trabalho, which specify salary range per industry, working hours, vacation days per year, etc. Employment contract is considered permanent unless your company fulfils one of the requirements to have employees on a fixed term contract (the fixed term contracts are limited in time and renewals). You also have to be careful when terminating employment agreements in order to meet the legal obligations, in Portugal employees are entitled to receive 20 days of compensation for each year worked in the company.
European citizens can work in Portugal without a working permit, all other nationalities will have to request a working permit. Furthermore, the working contract is considered valid only after the permit is delivered by the authorities.
Our local Portuguese Payroll & HR experts are highly skilled and keep constant track on Labour Law changes so that you can run your business in Portugal problem free.


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