Portugal offers international businesses a stable environment with access to skilled workers and the European market. Increasingly, global businesses are establishing their European Headquarters in the capital city of Lisbon. Expats are also taking advantage of accessing Portugal's thriving job market. We explore what employers need to know about hiring and managing expats in this growing environment.
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Navigating expatriate employment in Portugal
Portugal’s job market
Portugal's job market continues to grow with Lisbon named the fastest-growing tech hub in Europe. Its capital city has become a top destination for accessing talent and international business opportunities. Outside of tech, Portugal has a thriving tourist and hospitality industry. Overall, Portugal has a low unemployment rate and a high level of English proficiency. Rated the 8th most English-proficient country in the world.
Expat visa requirements
Portugal has welcomed international expats offering many types of visas, including digital nomad visas and residency permits. The requirement for visas differs depending on the nationality of your employees.
For expats from The EU and EFTA (European Free Trade Association ), they do not need a visa or permit to work In Portugal. But they will need to have a registration certificate from a local government to stay more than 3 months. Expats outside of The EU and EFTA will need a visa and residency permit to work in Portugal long-term. The application process is relatively straight forward with fees ranging from €30 - €80. Some visas require expats to also have comprehensive health insurance in place before moving to Portugal.
For more information on Portugal’s expat visa options, visit The Portuguese Agency for Integration, Migrations, and Asylum, which manages all applications.
For expats from The EU and EFTA (European Free Trade Association ), they do not need a visa or permit to work In Portugal. But they will need to have a registration certificate from a local government to stay more than 3 months. Expats outside of The EU and EFTA will need a visa and residency permit to work in Portugal long-term. The application process is relatively straight forward with fees ranging from €30 - €80. Some visas require expats to also have comprehensive health insurance in place before moving to Portugal.
For more information on Portugal’s expat visa options, visit The Portuguese Agency for Integration, Migrations, and Asylum, which manages all applications.
Average monthly salaries in Portugal
Salaries in Portugal are a lot lower than across other European cities, varying across sectors, locations, and professions. The average monthly salary starts at around €1,250 a month and Portugal's current minimum wage is €820 a month. Expats working in Portugal's main cities and higher paying occupations have the opportunity to earn more than the average salary. The cost of living and quality of life in Portugal still make it one of the best destinations for expats.
Employee benefits
Portugal has several mandatory benefits and entitlements for all employees in the country. Common benefits include paid annual leave, parental leave, workers' compensation insurance, paid sick leave and compulsory pension contributions. Employees are also entitled to have two extra salaries per year, typically in June and December for the summer and Christmas holidays.
Attracting talent in Portugal's competitive market
Due to Portugal's low unemployment rate and high demand for top talent, attracting and retaining employees should be a priority for your business. Understanding what benefits are expected by experienced expats can be challenging. Creating a competitive benefits package allows you to beat off other offers in the market. Popular benefits for attracting top candidates include flexible working arrangements, employee wellness programs, public transport allowances, gym memberships and Employee Assistant Programs.
Health care for expat employees
Healthcare in Portugal is a tax-funded public system, with non-essential services requiring small additional payments. Citizens from the EU and EEA (European Economic Area) have access to the public healthcare system for a limited time. After a 90-day period, expats will need to be registered as an official resident to continue on the public system. Expats who are not EU citizens can only access the system once they are employed and paying social security.
Expats living in Portugal's main cities have access to multiple healthcare facilities. However, expats living in rural areas will have limited options and may face challenges in finding English-speaking doctors and pharmacists.
Expats living in Portugal's main cities have access to multiple healthcare facilities. However, expats living in rural areas will have limited options and may face challenges in finding English-speaking doctors and pharmacists.
International health insurance for your employees
At Allianz Partners, we help international organisations of all sizes to support their employees with international health insurance plans. To learn more about how we can help your organisation, speak to us today.
