Employment taxes

• Income tax (IRS) is progressive, ranging from 14.5% to 48% based on your salary.
• Social security contribution: you pay 11%, your employer pays 23.75%.
• Most of this is taken care of automatically by your employer through payroll, easy peasy.

Leave policy

• 22 paid vacation days per year.
• 13+ public holidays (some optional, depending on your region).
• Parental leave: up to 120–180 days, with shared options between parents.
• Sick leave is covered by Social Security, starting on day 4 of illness

Employment termination

• Employers must have a justified reason to terminate a contract.
• Notice period ranges from 15 to 75 days, depending on how long you’ve worked.
• Severance is usually 12 days of base pay per year worked, but this can vary.

Hiring and contracts

• Written contracts are standard (and required by law).
• Can be indefinite (permanent) or fixed-term (with renewal limits).
• Portuguese or English? Both are common, especially in international companies.

Payroll and salary payments

• Salaries are paid monthly, usually by the last working day of the month.
• It’s common to receive 14 salary payments per year, one extra in summer and one in December (yep, holiday bonuses are a legal right).
• Payslips are detailed and include all taxes, social security contributions, and bonuses.
• Minimum wage: €820/month (gross) for full-time work in 2024.
• Standard working hours: 8 hours/day, 40 hours/week.
• Overtime pay:
• First hour: +25% of base hourly rate
• Additional hours: +37.5%
• Weekends or holidays: +50%

Employers also handle tax and social security deductions automatically through payroll, so everything’s taken care of behind the scenes.

Benefits

Not mandatory, but some companies offer perks like:

• Meal allowances (via card or vouchers)
• Health insurance (not required but appreciated)
• Commuting or home office stipends
• And of course, flexible hours and remote work policies are popular

Monthly living costs (Lisbon edition)

Living in the capital? Here’s what to expect:

• Rent (1-bed apartment): €1,000 – €1,500 (city center)
• Utilities & Internet: €150 – €200
• Groceries: €200 – €350
• Public transport: €40/month (with a Navegante card)
• Lunch out: €10–€15 (cheaper if you go local)

You can live comfortably as a single person for around €1,500 – €2,000/month, depending on your lifestyle.

How to get a local ID number (NIF)

You’ll need a NIF (Número de Identificação Fiscal) to do pretty much anything, like opening a bank account or signing a lease.

• For residents: Get it at a local tax office (Finanças) with your ID/passport and proof of address.
• For remote workers or digital nomads, you’ll need a local representative to request it on your behalf (some agencies can assist with this).

Tip: Some people obtain their NIF online before even arriving, which is totally legal, and it speeds up the process.

Social security registration

If you’re employed in Portugal:

• Your employer registers you with Segurança Social.
• You’ll receive a Social Security number, which provides access to healthcare, sick leave, and pension contributions.

Banking

• Open a Portuguese bank account with your passport, NIF, and proof of address.
• Popular banks: Millennium BCP, Santander, Novo Banco, ActivoBank.
• Many offer English-speaking services and solid mobile apps.

Housing and rental process

Renting in Portugal is pretty straightforward:

• You’ll likely need a NIF, ID, and proof of income.
• Deposits are usually 1–2 months’ rent.
• Tenant rights are strong, landlords must give 60+ days’ notice to end a lease, and rent increases are regulated annually.

Healthcare system

Portugal has a universal healthcare system, and it’s quite effective.

• Access through SNS (Serviço Nacional de Saúde).
• You’ll need a social security number and utente number to register.
• Many locals combine public and private care; private health insurance is affordable and gives quicker access to specialists.

Driving and public transport

• Public transport in Lisbon is reliable and affordable (metro, trams, buses, trains).
• Want to drive? If you’re from the EU, no problem. If not, you may need to exchange your license within 90 days.
• Uber, Bolt, and local taxis are widely available.

Emergency and important contacts

• Emergency (Police, Fire, Ambulance): 112
• SNS 24 (Health hotline): 808 24 24 24
• SEF (Immigration office): https://www.sef.pt/
• Social Security: https://www.seg-social.pt/

Work permit and Visa requirements

• EU/EEA citizens: No visa is required, but you must register your residence after 90 days.
• Non-EU: Portugal offers several options:
• D7 visa for passive income or remote work.
• Digital Nomad visa (for remote workers earning 4x Portuguese minimum wage).
• Tech Visa for Sponsored Professionals in Tech Roles.

Business culture and work norms

• Professional but friendly.
• Hierarchies exist, but expect to receive warm greetings and engage in small talk.
• Meetings may start a little late. Don’t rush the vibe.
• Lunch is sacred, and long meals are normal. Enjoy it.