- Overview: Portugal
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
Global PEO and Payroll in Portugal
Getting your business up-and-running in Portugal can be challenging, especially if you do not speak the native language. Establishing your own business entity in Portugal is an option to be considered as you expand abroad. But before you invest valuable resources in setting up business in Portugal, you should be fully aware of the risks involved.
Acumen’s Global PEO and Payroll solution was designed especially for companies like yours, to smooth the way for quick, easy and risk-free business operations in Portugal, without having to establish a legal business entity.
Acumen International – Your Professional Employer Organization in Portugal
Navigating the Portuguese legal system and adhering to regulations governing employment and taxation can be challenging for businesses, especially if you are not a native Portuguese speaker. Partnering with Acumen International as a global Professional Employer organization (PEO) provides you with the local knowledge and support you need to conduct business in Portugal without concern for legal and compliance risks.
Whether you represent international client companies or you are taking your own business operations abroad, Acumen International’s Global PEO and payroll service allows you to hire and payroll local and expat employees in Portugal. With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions.
International Global Payroll and Taxation in Portugal
Employment related taxes
Personal income tax (PIT). Residents in Portugal for tax purposes are taxed on their worldwide income at progressive rates.
Non-residents are liable to income tax only on Portuguese-source income, which includes not only that portion of remuneration that can be allocated to the activity carried out in Portugal but also remuneration that is borne by a Portuguese company or permanent establishment (PE).
For the purpose of applying the tax rate, the taxable income is divided by two if the taxpayers are married and not judicially separated, as well as in the case of de facto marriages, whatever the circumstances, should they opt for joint taxation.
Social security contributions. These contributions cover family, pension, and unemployment benefits.
Foreign residents may be exempt from social security in Portugal if they contribute to a compulsory social security system in a European Union (EU) country or a country that has a bilateral social security agreement with Portugal, provided they are in possession of the relevant certificate of coverage.
Payroll Cycle in Portugal
There is no official legal date that salaries must be paid, however, it must be paid at least once a month and by the last working day. It is also possible to pay employees bi-monthly.
13th salary in Portugal
Employees are entitled to 14 monthly payments per annum:
- 11 payments corresponding to 11 months of work actually performed
- A 12th payment corresponding to holiday remuneration
- A 13th payment corresponding to holiday bonus and
- A 14th payment corresponding to Christmas bonus.
Non-payroll taxes in Portugal
There are three VAT rates: the standard rate, the intermediate rate.
Supplies of services. Supplies of services are subject to VAT in Portugal whenever: acquired by taxable persons that have their business, a fixed establishment, domicile, or residence in Portugal to which the services are provided (B2B rule) or supplied to non-taxable persons if the provider has established its business, a fixed establishment, domicile, or residence in Portugal from where these services are provided (B2C rule).
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How Acumen’s International PEO and Payroll Service can Benefit Your Business in Portugal
Compensating your local and expat workforce in Portugal and closely adhering to Portuguese taxation requirements can divert your attention and resources from activities that help your business grow. A reliable global employment solution like Acumen’s Global PEO and Payroll service can take a substantial burden off your shoulders so you can focus on running your company.
Outsourcing the administrative and compliance tasks involved in employee payroll is one approach, but we have a better solution. Acumen International offers a global PEO and payroll solution that goes beyond outsourcing. We hire and compensate your global workforce on your behalf, and take care of all the details of payroll while ensuring full compliance with Portuguese labor and taxation laws.
It is important to note that Acumen does not provide international global payroll services as a standalone solution, but only as a part of our global PEO and Payroll solution.
Our comprehensive global PEO and payroll services are just some of the benefits of partnering with Acumen International. We make it easy for you to achieve your business goals in Portugal by officially employing and compensating your best selected global talent – both locals and expats – without concerns for legal and compliance risks faced by global employers.
Disclaimer: Any of the above information is subject to changes imposed by Portuguese laws. To get the latest updates on taxation in Portugal and in 190 countries worldwide, contact Acumen’s team of global employment experts.