Hiring and payroll in Portugal

Introduction

Portugal is a country in Southwestern Europe with an estimated population of 10 million people. With a Gross Domestic Product (GDP) of over USD 238 billion, Portugal is a European country enjoying a remarkable economic recovery.

Due to Portugal’s economic revival and strength, the country has emerged as a major European tech hub, with global organizations having a physical presence.

With Portuguese cities — Porto and Lisbon being economic hubs and culturally vibrant cities, Portugal is a favorite destination for organizations planning to expand into Europe or hire a remote team. Also, the talent pipeline of recent graduates from the University of Porto adds to the profusion of highly skilled professionals that attracts organizations.

Due to the vast talent pool in Portugal and low employment cost, Portugal is a favorite destination for organizations planning to hire a remote team with exceptional talent.

This article highlights everything you need to know about hiring a remote team and managing payroll in Portugal.

Hiring employees in Portugal

Over 90,000 graduates emerge from Portugal’s top ten universities annually. With this astounding figure, the talent pool in Portugal is undoubtedly vast. Also, Portugal’s favorable government policies and conducive environment for tech enable tech growth and enthusiasm for tech in the country.

Organizations planning to hire a remote team in Portugal will face the challenge of choosing from a large pool of highly qualified and skilled professionals.

How to hire employees in Portugal

To hire employees in Portugal, organizations are best suited to search the popular job platforms in Portugal, such as Alerta Emprego, Carga de Trabalhos, CareerJet, Emprego Saude, etc.

Hiring with an Employer of Record in Portugal

An Employer of Record is a third-party platform that enables global organizations to hire employees and contractors, onboard talent, manage an organization’s payroll and ensure compliance with country-specific employment laws and tax regulations.

The Employer of Record in Portugal helps companies carry out employment-related activities in compliance with Portugal’s employment laws. Also, The Employer of Record in Portugal enables global organizations to hire a remote team, onboard talent, manage payroll and ensure compliance with Portugal’s laws without setting up subsidiaries.

Payroll in Portugal

Organizations planning to manage payroll in Portugal must comply with Portugal’s employment and payroll laws.

Ensuring compliance with the payroll laws in Portugal is crucial. Therefore, managing a team in Portugal requires choosing the best means to handle payroll in Portugal. Two ways to manage payroll in Portugal are

Paying employees via subsidiaries

It is common practice to establish subsidiaries or partner with the local entity when planning to conduct business operations in a new country. Establishing subsidiaries ensures organizations have the legal rights to hire and pay Portuguese employees. Managing payroll in Portugal is possible by establishing subsidiaries.

Managing Payroll in Portugal with an Employer of Record platform

Setting up a subsidiary in Portugal is challenging, time-consuming, and resource-intensive. However, a local entity or subsidiary is crucial for organizations to manage their payroll in Portugal effectively.

But with an Employer of Record platform, global organizations can pay their employees seamlessly without setting up a subsidiary in Portugal. This becomes possible because the Employer of Record platform acts as the legal employer for the organization, handling all the requirements to manage payroll in Portugal.

The Cost of Hiring an Employee in Portugal

Organizations planning to hire a remote team in Portugal must take note of the cost and resources it will require. Like every business pursuit, understanding the financial requirements is key to managing growth expectations and helps in efficient planning and structure of the organization.

Therefore, the cost required to hire an employee in Portugal involves the following.

• The subsidiary establishment expenses and cost of running the business
• Acquisition of a legal team
• The employment and payroll platform costs
• Job boards ad placement costs
• Interviews and background checks expenses

Organizations planning to hire a remote team in Portugal can do so at a cost-effective price by partnering with an Employer of Record platform like Skuad. Skuad is a global employment and payroll platform that handles the entire employment lifecycle of organizations in Portugal by managing all employment-related activities and ensuring compliance with Portugal’s employment laws.

Conclusion

An Employer of Record offers the best solution for organizations planning to hire a remote team or manage payroll in Portugal. While expanding into a new country is challenging, an Employer of Record platform enables organizations to hire contractors and full-time employees, onboard talent, manage payroll, and ensure all employment-related activities comply with Portugal’s employment laws.

Employer of Record platforms like Skuad ensures that organizations can build globally distributed teams quickly and without hassles. To know more about Skuad, book a demo today.