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The diversified and service-based economy of Portugal is relatively strong and stable. It is ranked 34th in the World Economic Forum’s Global Competitiveness Report for 2019. The key sectors that drive the economy of Portugal are metallurgy, mechanical engineering, machinery, electrical and electronics, textile, forest-based industries, and construction. Portugal is also home to world-renown companies including The Navigator Company (paper), Sonae Indústria (panels), Amorim (cork), Conservas Ramirez (canned food), Cimpor (cement), EDP Renováveis (wind energy), Jerónimo Martins (consumer products), and TAP Air Portugal (airlines). Portugal’s business culture focuses a lot on creating relationships of loyalty and trust.

How to build a team in Portugal

Employers need to follow the strict employment guidelines set forth by the local authorities before they could employ in Portugal. This process can be time-consuming as the company first needs a legal entity in the country and it needs to manage payroll, tax, benefits and compliance.

Global payroll solutions make it easy to find and hire top talent in Portugal. With one seamless integration and local legal entity, we take care of the compliance matters so that you can start your globelizing plan immediately.

Compliance risk

Risk of misclassification

Portugal’s worker classification labour and tax laws distinguish between contractors and full timers. If the individual meets the legal definition of an employee but is classified as a contractor, your company will face penalties.

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