Global Expansion Resources | Portugal
Portugal Payroll Solutions
Ensuring a straight-forward and compliant expansion into Portugal for your business
Adhere to foreign employment law with ease using our specialist Portuguese payroll solutions
Expanding your operations into Portugal could be the catalyst that sets your business up for success on the global stage. But the process isn’t easy without specialist support. That’s where Leap29’s expert Portugal payroll solutions come in.
Harnessing over 25 years of multi-disciplinary experience across 180+ countries, our highly-skilled team of global expansion experts can help you remain compliant, save costs and avoid delays – every step of the way.
As part of our comprehensive Portuguese PEO (Professional Employer Organisation) services and global payroll solutions, we can also support your business with:
- Fulfilling HR Duties
- Issuing Lawful Portuguese Employment Contracts
- Obliging with Portuguese Tax & Social Security Requirements
- Issuing Country-Specific Employee Benefits
Running payroll in one country and/or currency is one thing, but attempting to juggle multi-currency transactions across different time zones is another. Allow our global payroll professionals to handle all of the country-specific complexities for you, while you focus your resources on the growth and day-to-day management of your business.
Want to expand into Portugal?
Contact us today to see how Leap29 can be the trusted partner that supports your global expansion.
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What’s included:
HR software
Bespoke employee management software included in our PEO service.
Global compliance
We have expert teams across the world to ensure global compliance.
Transparent pricing
Avoid hidden costs and account for our fee with our transparent pricing.
Portugal Expansion Advice
How do I run payroll compliantly in Portugal?
In order to run payroll compliantly in Portugal, some of the tasks your business will need to complete include:
- Register with Registro Comercial: All businesses operating in Portugal must be registered with Registro Comercial (the Commercial Registry). Employers can either do this in-person using the same-day ‘Empresa na Hora’ (‘Company in an Hour’) service, or online via ‘Empresa Online’.
- Register with Autoridade Tributária e Aduaneira and Segurança Social: Employers must also register with Autoridade Tributária e Aduaneira (the Portuguese Tax and Customs Office) and Segurança Social (Social Security). After doing so, they will receive a taxpayer number which they will then need to withhold and pay employee taxes.
- Provide employees with a written employment contract, if applicable: Employment contracts are not always mandatory in Portugal, but it is still common practice for employers to write up their terms of employment within 60 days of hiring a new recruit. Law no. 7/2009 (as amended) in the Código do Trabalho (Labour Code) mandates written employment contracts for:
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- Fixed-term contracts
- Contracts with foreign employees
- Contracts with multiple employers
- Part-time contracts
- Management contracts
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- Register new employees with social security bodies: At least 24 hours before the official start date of an employee’s contract, employers must register their new hires with social security. This can usually be done online, unless the recruit has never worked in Portugal before, in which case they will need to be assigned a social security number first.
- Take out occupational accident insurance: Employers must have occupational accident insurance in place before their employees’ first working day. This ensures new hires are protected in the case of any injuries at work.
- Sign up for the Fundos de Compensação: All employers must sign up for the Fundos de Compensação (National Compensation Fund), which protects employees from loss of income in the case of the company going bankrupt.
- Provide employees with payslips and keep payroll records: Employers must issue regular payslips to employees, this usually happens on a monthly basis. There are also two bonuses (a 13th and 14th month bonus) which can be paid over the year in 12 instalments with salary. Employers must also keep payroll records for at least 5 years.
Getting past the red tape within the Portuguese business landscape can be difficult alone. Whether it’s foreign tax filing, complex business registration, or strict bureaucratic barriers delaying your time to market, Leap29’s specialist payroll team can help you achieve your goals within a realistic timescale.
What are the advantages of expanding your business into Portugal?
Expanding your business into Portugal offers many advantages, including:
- Strategic Geographic Location: Conveniently located in the South-West of Europe, expanding into Portugal opens the door to vital trade routes with Africa, South America and the rest of Europe. Boasting some of the busiest ports in the region, Portuguese businesses can also import raw materials and export finished goods across the Mediterranean Sea, Atlantic Ocean and Suez Canal with ease.
- Resilient Economy: Most countries fell subject to a recession after the COVID-19 pandemic, as supply chain disruptions and stay-at-home policies caused business revenues to plummet. However, Portugal’s resilient economy bounced back quicker than most. The key driver behind this resilience was an influx of tourists, and the country has continued to be a tourist hotspot to this day. This means expanding businesses can operate in a stable economy with strong markets.
- Funding Programmes and Initiatives: The Instituto de Apoio às Pequenas e Médias Empresas e à Inovação (IAPMEI), which translates to the Institute of Support for Small and Medium-Sized Companies & Innovation, provides a wide range of incentives and support programmes for budding entrepreneurs/businesses. This makes it easier for new companies to get the funding they need for the business model they’re envisioning.
- European Union (EU) Membership: Expanding businesses can also enjoy all of the benefits that come with Portugal being an EU member – especially the ability to trade freely without barriers, such as tariffs.
How can Leap29’s Portuguese payroll solutions support your expansion?
While Portugal promises access to strong EU markets and an influx of tourist custom, that’s not to say expanding your business’ operations there will be easy without the right support. To ensure you pay your employees in a compliant, accurate and timely manner, you’ll need the help of a reliable Portugal payroll provider.
Whether you need to pay a single employee or an entire workforce, Leap29 can help you comply with Autoridade Tributária e Aduaneira and Segurança Social regulations, as well as avoid employee disputes for late or inaccurate payments. To do this, our team will handle all of the following on your behalf:
- Calculating employee salaries (including the 13th and 14th month bonuses).
- Creating and issuing monthly payslips.
- Calculating tax-free allowances and applicable tax rates.
- Filing and submitting monthly payroll reports (including the Declaração Mensal de Remunerações, which translates to the Monthly Remuneration Statement) to the Portuguese tax authorities online via the Portal das Finanças (Tax Portal).
- Complying with AIMA (Agência para a Integração Migrações e Asilo immigration laws, as well as Autoridade Tributária e Aduaneira and Segurança Social tax/social security legislation.
- Processing multi-currency payments with minimal administration.
- Complying with Portuguese employment laws regarding contracts, taxation, termination, leave and any applicable employee benefits/insurance.
Why choose Leap29 to be your Portugal payroll provider?
Leap29’s Portugal payroll services provide 99.99% accuracy, guaranteed compliance and transparent pricing with no hidden fees.
With over 25 years of experience across 180+ countries, Leap29 have supported global expansions for a wide range of sectors, including but not limited to:
- Aerospace
- Construction & Engineering
- Education
- Life Sciences & Pharmaceuticals
- Manufacturing
- Medical & Healthcare
- Oil & Gas
- Renewable Energy
- Technology
- Transport & Logistics
To find out more about how our Portuguese Payroll Solutions can support your global expansion, call our experts today on +44 (0) 20 8129 6860 or email us at expansion@leap29.com.
Why not try our Employee Cost Calculator to find out the costs of employing internationally? Simply enter your chosen country and base salary, then view the estimate straightaway on-screen!
Don’t take our word for it!
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Portugal Payroll Solutions: FAQs
What are the benefits of using a Portugal payroll provider?
Expanding globally can eat into a company’s valuable time and resources. But with Leap29’s Portugal payroll solutions, your business can:
- Minimise Compliance Risks: With over 25 years of experience in ensuring compliant global expansions, we can handle all employment law, Autoridade Tributária e Aduaneira (tax) and Segurança Social (social security) requirements with ease, so you can grow with confidence.
- Avoid Legal Penalties & Unhappy Employees: Thanks to our system’s 99.99% payroll accuracy, you can expand with satisfied employees, a sense of legal harmony and a reputation that will always stay intact.
- Free Up Internal Resources: Alleviate your internal HR team of administrative burden so you and your team can focus on business growth, while we handle the rest. Learn more about using an Employer of Record vs In-House HR via our professional expansion insights.
Do I need to set up a legal entity to run compliant payroll in Portugal?
If you’re not using a PEO provider – yes. You must first set up a legal entity to be able to hire employees directly and run payroll compliantly in Portugal.
But with Leap29’s expert Portugal payroll services, there would be no need to set up any entities or subsidiaries. Acting as your Professional Employer Organisation, we would handle all aspects of payroll, tax and local compliance for you – simplifying your global expansion and streamlining your business’ growth.
How much do Leap29’s Portugal payroll solutions cost?
Leap29’s Portugal payroll services start at $15 per employee/month. For that cost, you get:
- 99.99% payroll accuracy.
- Optional API integrations with your HR, finance and accounting packages.
- Local, regional and HQ-level assistance from our payroll specialists.
- A visual display of your data to inform decision-making.
Additional services, such as tax and labour authority handling, compliance management and extra HR support are also available. Visit Leap29’s pricing page for more information.
Talk to an expert today
Contact us today to see how Leap29 can be the trusted PEO partner that supports your global expansion.
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Portugal
Expansion Resources
Local expertise, global reach
Employ people compliantly in 180+ countries – with or without your own foreign entities. We can help you set up and manage foreign entities – or act as an Employer of Record. We can also help with multi-country payroll and all your HR management. Wherever, whenever and however you want to employ people, we can help.
180+
We make expansion in Portugal simple
Employing people compliantly across international borders can be challenging but we make it simple, bringing down barriers and making light work of the complexities. We offer the full range of compliant global expansion solutions so that wherever, whenever and however you want to employ people, we can support you.
EOR Services
Employ people compliantly in 180+ countries – without setting up new entities. We’ll shoulder responsibility as Employer of Record (EOR), making sure all your international employment is fully compliant.
We can also take care of your global HR from multi-country payroll to onboarding and offboarding.
Payroll Solutions
Getting global payroll right is one of the hardest challenges for any business expanding into new countries. We can shoulder this burden, freeing up valuable in-house resource to focus on growing your business.
Consider us an extension of your HR team, ready to answer all your questions large and small.
Global Mobility
Mobilise your people across borders with ease. Relocating to work abroad can feel daunting. But with Leap29 at your side, your employees can feel safe and supported.
We’ll guide your employees through the complexities of working in another country, helping them settle in fast.
Entity Services
Follow the opportunities to grow your business – wherever they take you.
We lighten the load of establishing and managing foreign entities and can help you solve all your entity challenges from running compliant, accurate multi-country payroll to local accounting and financial reporting.
PEO Solutions
Employ international talent wherever and whenever you need it – and enjoy the peace of mind of knowing you’re fully compliant. Our Professional Employer Organisation (PEO) services allow you to focus on growing your business while we handle compliance, multi-country payroll and your global HR.
Support & Advisory
The help you need to make your global growth effortless – trusted guidance and advice on your expansion challenges large and small.
HR Support
When you’re employing people in lots of different countries, answering just a simple query can take a disproportionate amount of time for your in-house HR team. Our HR Support service reduces this burden, saving you time and money and giving you the confidence of knowing your employees are well looked after, whatever their location.
Contractor Payroll
Enjoy compliant contractor payroll that meets all local requirements for tax, social security and employment legislation. We understand the importance of compliant contractor payroll to the success of your business and will pay your contractors on time, every time.
Start hiring today – and onboard within hours.
Pricing
Budget confidently with transparent, competitive fees and no hidden costs.
Want us to shoulder employer liability and take care of your global HR through our EOR solution? No problem. Just want global payroll? You can have that too. Pick the solutions that your individual business needs.