Portugal

Working time & holidays

The law caps the week at 40 hours and the day at 8; many agreements set 35. Overtime is limited to 2 hours per day and 150 (up to 200) per year — always with premiums.

Employees get at least 22 working days of paid leave, plus 13 national and usually one local public holiday. On top comes statutory holiday pay equal to regular base salary.

Forms of employment

The permanent contrato sem termo is the standard — executive probation can run up to 240 days. Fixed terms face strict duration caps; agency work and freelancing (recibos verdes) are widespread.

Income taxes

The IRS scale is progressive: 13 % to 48 %, plus a solidarity surcharge of 2.5–5 % above €80,000 annual income.

For incoming highly qualified professionals in science and academia, the IFICI programme (successor to NHR) offers reduced rates.

Payroll costs

Social security runs through the single social levy (TSU): employers pay 23.75 % on top of gross, employees 11 %.

Collective agreements

Contratos colectivos are negotiated sector by sector and can be declared universally binding, setting standards above the legal minimum for pay, hours and special leave.

Hiring from abroad

EU citizens enjoy free movement (tax residency from 183 days per year). Third-country nationals need dedicated visas — such as the D3 visa for highly qualified roles. Employers register foreign hires with the tax office and social security.