Employer of Record (EOR) Services in Portugal

Employer of Record (EOR) Services in Portugal

This blog explains how to hire in Portugal using Employer of Record services. You’ll learn the legal requirements, hiring benefits, challenges, and how Remire helps simplify the entire process.
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Build your team in Portugal without setting up a local entity. Remire’s Employer of Record (EOR) services in Portugal let you hire, pay, and manage employees legally and efficiently, while we handle all the local compliance, contracts, payroll, and benefits for you.

What Is an EOR in Portugal?

An Employer of Record (EOR) is a third-party organization that legally employs your workers in Portugal on your behalf. 

You manage the employee’s daily work, while the EOR takes care of everything else, from employment contracts and payroll to tax filings and social security registration.

This gives your business the freedom to hire top Portuguese talent quickly, compliantly, and without the complexity of opening a local entity.

How EOR Portugal Compares to Other Models (PEO, Contractor)

Model

Legal Employer

Entity Required

Ideal Use Case

EOR (Employer of Record)

EOR provider

  No

Hire in Portugal without entity setup

PEO (Professional Employer Organization)

Shared (co-employment)

  Yes

Companies with an existing local entity

Contractor Model

Self-employed individual

  No

Short-term or freelance work (higher misclassification risk)

Why Use an Employer of Record in Portugal

Benefits — Speed, Compliance, No Entity Needed

  • Hire in days, not months: EORs like Remire already have a registered Portuguese entity, so you can onboard employees immediately.
  • Full compliance: All payroll, tax, and labor laws handled by experts familiar with Portugal’s employment code.
  • No legal entity required: Avoid the costs and delays of establishing a branch or subsidiary.
  • Localized benefits: Employees receive benefits and protections required under Portuguese law.
  • Lower risk: The EOR assumes responsibility for compliance, protecting your business from penalties or disputes.

Risks & Considerations

While EORs simplify expansion, choosing the right partner is crucial. Cheap, generic providers may:

  • Mismanage local compliance or filings
  • Offer inflexible contracts or limited benefits
  • Lack of in-country support or legal expertise

Remire mitigates these risks through local HR specialists, Portuguese legal counsel, and dedicated account managers for every client.

How Remire’s EOR Portugal Works

Onboarding & Contract Setup

We draft bilingual (Portuguese and English) employment contracts that meet local labor code standards. Remire registers each employee with Segurança Social and tax authorities before their start date.

Payroll Management & Tax Compliance

Our payroll team handles monthly salary calculations, withholdings, bonuses (holiday & Christmas pay), and submissions to Portuguese authorities,  ensuring 100% compliance.

Benefits, Social Security, Insurance

We manage statutory benefits including paid leave, sick pay, parental leave, and public holidays, as well as optional add-ons such as health insurance and meal allowances.

Termination, Probation & Local Regulations

Remire ensures fair and compliant termination processes, following proper notice periods, severance calculations, and probation rules as defined by the Portuguese Labor Code.

Local Employment Laws & Compliance in Portugal

Employment Contracts & Required Clauses

Written contracts are mandatory for fixed-term and part-time employees and strongly advised for all. They must outline:

  • Role, salary, and benefits
  • Working hours and conditions
  • Termination clauses
  • Applicable collective bargaining agreements

Contracts should be drafted in Portuguese (with English translation if needed) and aligned with the Portuguese Labor Code (Código do Trabalho).

Social Security & Contributions

Employers contribute 23.75%, and employees contribute 11% of gross salary toward social security. All employees must be registered before their first working day, with monthly payroll declarations filed electronically.

Leave, Overtime, Working Hours, Termination Rules

  • Workweek: 40 hours (8 hours/day maximum)
  • Paid Leave: 22 vacation days + 13 public holidays
  • Overtime: Paid at 125–137.5% or time off in lieu
  • Notice Periods: 15–60 days, depending on tenure
  • Severance: ~12 days’ pay per service year (capped)

Data Protection, Local Registrations, Labor Code

Remire ensures all employee data management follows GDPR and Portuguese privacy law. We handle required registrations and maintain audit-ready records for local authorities.

Use Cases & Who Should Use EOR Portugal

Startups Expanding to Portugal

Test the market, hire your first team members, and operate compliantly without setting up a company.

Remote Teams in Europe

Easily employ remote Portuguese professionals while managing everything through a single global platform.

Companies Entering Portugal as Pilot Market

Run a pilot operation, validate your business model, and scale confidently once results prove successful.

EOR Portugal vs Entity Setup / DIY Hiring

Cost Comparison

Setting up a company in Portugal can take up to three months and involves legal, accounting, and administrative expenses. With Remire’s EOR, you avoid these upfront costs and ongoing compliance overhead.

Risk & Compliance Tradeoffs

Model

Control

Risk

Time to Hire

Compliance Burden

Entity Setup

Full

High

2–3 months

Complex

EOR Portugal

Shared

Low

1–2 weeks

Minimal

Contractor Hiring

Partial

Medium

Fast

Risk of Misclassification

Frequently Asked Questions

How Much Does EOR Service in Portugal Cost?

Pricing depends on role type, benefits, and volume. Contact Remire for a custom quote.

Yes, EOR hiring is fully legal and regulated under Portuguese labor laws.

Remire covers contracts, onboarding, payroll, tax filings, benefits administration, and compliant offboarding.

Contact Remire to Set Up EOR in Portugal

Hire employees in Portugal legally, quickly, and without bureaucracy.