Portugal Work Permits & Visas: Processes for Employers

Whether you’re hiring locally in Portugal or relocating foreign talent, it’s essential to make sure any new hire has the required work visa or permit to legally work for you. The Portuguese professional landscape has become popular, making its work permit increasingly in demand over the past few years: in the first eight months of 2024, Portugal issued 9,262 work visas, marking a 15% increase compared to the same period in 2023.

Navigating Portuguese work permits and visas can get complex, but it doesn’t have to be. Playroll is an EOR provider that does the groundwork for you when it comes to staying compliant with local employment laws and ensuring a smooth international hiring process, with additional visa support services in Portugal.

This guide addresses the key requirements, processes, and responsibilities for employers to ensure compliance when your new hire requires a work visa in Portugal.

Who Needs a Work Permit in Portugal

In Portugal, non-EU/EEA nationals generally require a Portugal work permit or visa to legally work and reside in the country. This requirement applies to most foreign employees, with exceptions for EU, EEA, and Swiss citizens who do not need a work permit due to freedom of movement within the European Union.

Employers are responsible for verifying that all foreign employees possess the correct work authorization and hold a valid Portugal work permit. Unauthorized employment can lead to fines and restrictions for both the company and the employee.

Types of Work Visas in Portugal

There are a variety of work permits and visas that foreign nationals can apply for when seeking work in Portugal. Each of these is tailored to specific employment needs and has unique eligibility criteria, application steps, and duration limitations:

Requirements for a Work Permit in Portugal

Employees applying for a work permit or visa in Portugal must provide a range of documents that are outlined by the Ministry of Foreign Affairs. This includes documentation the employer should supply to support the visa applicants. Here’s a summary of the key documentation required, with a focus on the types of visas that require employer support:

• Valid Passport: The passport must be valid for at least six months beyond the intended stay.
• Completed Visa Application Form: The form must be filled out accurately and signed by the applicant.
• Employment Contract: A formal employment contract or job offer from a Portuguese employer.
• Proof of Financial Means: Evidence that the employee can support themselves during their stay.
• Health Insurance: Proof of health insurance covering the entire duration of the stay.
• Criminal Record Certificate: A certificate from the home country showing no criminal history.
• Proof of Accommodation: Evidence of where the employee will reside in Portugal.

Portugal Work Permit Application Process

• Secure a Job Offer: Obtain a formal job offer or employment contract from a Portuguese employer.
• Employer Applies for a Work Permit: The employer must apply for a work permit on behalf of the employee through SEF (Serviço de Estrangeiros e Fronteiras).
• Apply for a Work Visa: Once the work permit is approved, the employee applies for a work visa at the Portuguese Embassy or Consulate in their home country.
• Attend Visa Interview: The employee may need to attend an interview to verify their application details.
• Travel to Portugal: After visa approval, the employee can travel to Portugal.
• Apply for a Residence Permit: Schedule an appointment with SEF to obtain a residence permit.
• Register with Social Security: The employer registers the employee with the Portuguese Social Security system.

Process for Visa Sponsorship in Portugal

Sponsoring a non-EU/EEA national for employment in Portugal involves obtaining a work permit, supporting the visa application, and ensuring compliance with Portuguese immigration laws. Employers need to submit a job offer, proof of social security registration, and ensure the job was advertised to EU/EEA nationals before hiring foreign talent.

What Are the Fees for a Work Permit or Visa in Portugal

The cost of obtaining a Portuguese work visa varies based on the type of visa. Here's a breakdown of the fees:

Additionally, there are fees associated with obtaining a residence permit:

• Application for Residence Permit: €83
• Issuance of Residence Permit: €72

These fees are payable to the Portuguese Immigration and Borders Service (SEF) during the residence permit application process. It's advisable to check with the Portuguese Embassy or Consulate for the most up-to-date information.

Processing Time for a Work Permit or Visa in Portugal

The processing time for Portuguese work permits and visas varies based on the type of visa and individual circumstances:

• Work Permit Approval: SEF typically processes work permit applications within 60 days.
• Work Visa Issuance: Following work permit approval, the Portuguese Embassy or Consulate takes an additional 2-3 months to issue the work visa.

Employers should plan for a total processing time of approximately 3-5 months from the initial application to the employee's arrival in Portugal. Delays can occur due to incomplete documentation, high application volumes, or changes in immigration laws.

Work Permit Renewal Periods in Portugal

The duration and renewal process for work permits in Portugal depend on the specific visa type:

Visa Requirements for Digital Nomads in Portugal

Portugal introduced the Digital Nomad Visa (D8 Visa) in 2022 to attract remote workers and freelancers from non-EU/EEA countries. This visa allows individuals to live in Portugal while working remotely for employers or clients outside the country.

Requirements for the Digital Nomad Visa include:

• Valid Passport: Valid for at least six months.
• Proof of Remote Employment: Employment contract or proof of business ownership outside Portugal.
• Minimum Income Threshold: Proof of earning at least €3,040 per month (four times Portugal's minimum wage).
• Health Insurance: Coverage for the entire duration of the stay.
• Accommodation Proof: Evidence of where the applicant will reside in Portugal.
• Criminal Record Certificate: Certificate from the home country showing no criminal history.

This visa offers flexibility for employers looking to hire international talent working remotely from Portugal.

Common Challenges and Tips for Employers Hiring in Portugal

Employers hiring foreign talent in Portugal may face several challenges. Here are key challenges and tips for overcoming them:

• Complex Compliance Requirements: Portugal’s strict employment regulations require careful compliance. Consider partnering with an EOR like Playroll to ensure compliance.
• Strict Labor Laws: Employment contracts must meet Portuguese legal standards. Non-compliance can result in fines.
• Language Barriers: Legal documents and government communications are often in Portuguese. Work with local experts for translations.
• Tax and Payroll Complexity: Portugal’s tax system is intricate. Use cost calculators to plan for employment taxes and social security contributions.

Hire Global employees without hassle with an EOR solution

Expanding your workforce across international borders is an exciting step, but it can be a logistical nightmare to hire and pay employees in different countries. That’s the advantage of using a trusted Employer of Record like Playroll. They can:

• Handle your international payroll: An EOR will act as your payroll provider, paying your employees on your behalf in the local currency. The company will also have in-depth knowledge of local tax codes, regulatory practices, and everything else that goes into managing global payroll.
• Alleviate compliance concerns: Different countries each have their own federal and local laws governing employee payments. An EOR helps ensure that you are compliant with the unique set of laws for any country in which your company operates. This is extremely important since a compliance slip-up can result in heavy fines or even a lawsuit.
• Hire and pay international contractors: Sometimes a particular project or role doesn’t require hiring a full-time employee. An EOR gives employers the flexibility to also hire contractors as needed, and avoid the potential for misclassification under local labor law.