Working in Portugal: Your complete guide

Working in Portugal 2026 | Employment, Self-Employment & NHR Tax Guide

Self-employment in Portugal

Registering as self-employed (trabalhador independente) in Portugal is a straightforward process. This is often the easiest route for expats to begin working and earning income. Explore the steps and requirements to become self-employed and start your professional journey in Portugal.

Registering as self-employed (trabalhador independente) is straightforward.

Steps:

  1. Obtain NIF

  2. Register at Finanças (tax office)

  3. Open activity

  4. Issue invoices (recibos verdes)

  5. Pay quarterly social security

  6. File annual tax return

Social security costs approximately 21.4% of income (reduced rates first year).

Income tax follows standard progressive rates.

An accountant costs €50-150 monthly and is highly recommended.

Can You Work in Portugal?

Yes, but legally.

Your visa type determines what work you can do:

  • D7 Visa: No active work in Portugal allowed

  • Digital Nomad Visa: Remote work for foreign clients only

  • D2 Visa: Self-employment and business ownership

  • D3 Visa: Employment with Portuguese companies

  • EU Citizens: Any work without restrictions

Working illegally jeopardises your residency and creates tax problems.

Remote Work

Remote work for foreign employers is increasingly common.

Legal requirements:

  • Appropriate visa (Digital Nomad or D2)

  • Portuguese tax registration

  • Declaring foreign income

Practical considerations:

  • Time zone differences

  • Reliable internet (generally excellent in Portugal)

  • Workspace setup

Co-working spaces exist in larger towns. Costs €100-300 monthly.

Starting a business in portugal

For English-speaking expats, starting a business can be a realistic path to employment in Portugal. Consider these company types:

  • Empresário em Nome Individual (ENI): Sole trader. Simple to set up, but there's no separation between personal and business liability.
  • Sociedade Unipessoal por Quotas (Unipessoal Lda): Single-member limited company offering limited liability with a minimum capital of €1.
  • Sociedade por Quotas (Lda): Multi-member limited company, most common for small businesses, with a minimum capital of €2.
  • Sociedade Anónima (SA): Public limited company requiring €50,000 minimum capital, suitable for larger operations.

Starting a Business in Portugal

Company Types

Empresário em Nome Individual (ENI): Sole trader. Simple to set up. No separation between personal and business liability.

Sociedade Unipessoal por Quotas (Unipessoal Lda): Single-member limited company. Limited liability. €1 minimum capital.

Sociedade por Quotas (Lda): Multi-member limited company. Most common for small businesses. €2 minimum capital.

Sociedade Anónima (SA): Public limited company. €50,000 minimum capital. For larger operations.

Setting Up a Company

The Empresa na Hora (Company in an Hour) service allows quick formation:

  1. Choose company name from approved list

  2. Register at Empresa na Hora office

  3. Receive tax numbers and documentation

  4. Open business bank account

  5. Begin operations

Costs approximately €360 for standard formation.

Custom company names require additional steps and time.

Ongoing Obligations

  • Certified accountant required for Lda and SA

  • Monthly and annual tax declarations

  • Employee social security if hiring staff

  • Annual accounts filing

Buying an existing business

Buying an Existing Business

Buying an established business offers advantages:

  • Existing customer base

  • Proven revenue

  • Established suppliers

  • Trained staff

Due diligence is essential:

  • Verify financial records

  • Check tax compliance

  • Confirm licences and permits

  • Review employment contracts

  • Assess lease terms

  • Investigate debts and liabilities

Professional legal and accounting support is non-negotiable.

Common businesses available:

  • Cafés and restaurants

  • Guest houses

  • Retail shops

  • Service businesses

Prices vary enormously. Expect 2-5 times annual profit for established businesses.

Transferring a Business to Portugal

 

Moving an existing business to Portugal requires planning.

Options

  1. Close abroad, open in Portugal: Simplest legally. May have tax implications on closure.

  2. Open Portuguese branch: Parent company abroad, operations in Portugal. Complex accounting.

  3. Transfer domicile: Moving company registration. Not possible between all countries.

  4. Gradual transition: Start Portuguese entity, transfer clients over time.

Considerations

  • Client locations and contracts

  • Employee relocations

  • Intellectual property

  • Tax implications in both countries

  • Banking and payments

This area requires specialist legal and tax advice. Mistakes are expensive.

Employment in Portugal

Finding employment as a foreigner:

  • English-speaking roles in tourism, tech, customer service

  • International companies have offices in Lisbon and Porto

  • Teaching English always in demand

  • Remote positions advertised internationally

Minimum wage 2026: Approximately €870 monthly (14 payments per year).

Average salaries are lower than UK/USA. Adjust expectations.

Employment contracts are typically:

  • Fixed-term (termo certo)

  • Permanent (sem termo)

Portuguese employment law strongly protects workers. Termination is difficult for employers.

Licences and Permits

Many businesses require specific licences:

  • Food businesses need HACCP certification

  • Tourism businesses need RNET registration

  • Construction needs certified professionals

  • Real estate requires AMI licence

Research requirements for your specific sector before investing.

Business Banking

Business accounts are essential for companies.

Requirements:

  • Company registration documents

  • NIF numbers for company and owners

  • Proof of address

  • Identification for directors

Accounts take 2-4 weeks to open. Start early.

Hiring Staff

Employing staff creates obligations:

  • Employment contract (written)

  • Social security registration

  • Salary payments (14 months per year)

  • Holiday entitlements (22 days minimum)

  • Health and safety compliance

Total employment cost is approximately 123.75% of gross salary (employer social security contribution 23.75%).

Business Support

Starting, buying, or transferring a business in Portugal can be complex — but you don’t have to figure it out alone. I can guide you through the key steps and connect you with trusted professionals who specialise in Portuguese business law, taxation, and company formation. Whether you’re opening a new venture, purchasing an existing business, or relocating your operations to Portugal, I can ensure you’re in contact with the right experts to make the process smooth, compliant, and successful.

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