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Portugal: Country Fact Sheet

Portugal: Country Fact Sheet

General Overview

CapitalLisbon
Population~10 million
LanguagePortuguese
CurrencyEuro (€)
Time ZoneGMT

Business & Taxation

Standard VAT Rate23%
GDP~$337.94 billion (2025 Est.)

Public holidays, leave, & benefits

Public holidays (2026)

  • 1 Jan.
    Thursday
    New Year’s Day (Ano Novo)
  • 17 Feb.
    Tuesday
    Carnival 1 (Carnaval)
  • 3 Apr.
    Friday
    Good Friday (Sexta-feira Santa)
  • 5 Apr.
    Sunday
    Easter Sunday (Domingo de Páscoa)
  • 25 Apr.
    Saturday
    Freedom Day 2 (Dia da Liberdade)
  • 1 May.
    Friday
    Labor Day (Dia do Trabalhador)
  • 4 June
    Thursday
    Corpus Christi 3 (Corpo de Deus)
  • 10 June
    Wednesday
    Portugal National Day (Dia de Portugal, de Camões e das Comunidades Portuguesas)
  • 15 Aug.
    Saturday
    Assumption of Mary ( Assunção de Nossa Senhora)
  • 5 Oct.
    Monday
    Republic Day (Implantação da República)
  • 1 Nov.
    Sunday
    All Saints’ Day (Todos os Santos)
  • 1 Dec.
    Tuesday
    Restoration of Independence Day (Restauração da Independência)
  • 8 Dec.
    Tuesday
    Immaculate Conception (Imaculada Conceição)
  • 25 Dec.
    Friday
    Christmas Day (Natal)
  • 1. Optional public holiday. Mandatory for government and banking sectors, but at the discretion of private employers.
  • 2. Commemorates the 1974 Carnation Revolution.
  • 3. Always falls on a Thursday, 60 days after Easter.

Workforce & employment framework

Standard working week

40 hours (Monday to Friday)

Collective bargaining agreements (CBAs)

Collective agreements (CBAs) can influence terms, particularly in large sectors such as public services, manufacturing, and tech

Employment contracts:
  • Open-ended (standard)
  • Fixed-term (strictly regulated; legally limited in duration and renewals)

Employment relationships are regulated by labour law, with mandatory written contracts in most cases.

Termination basics
  • Notice periods depend on tenure and contract type
  • Termination procedures are formal and strictly regulated
  • Strong protections against unlawful dismissal
  • Compensation may apply in cases of unfair termination
Hiring considerations
  • Employment documentation and contracts are typically required in Portuguese
  • Social security and payroll compliance are strictly enforced
  • Misclassification of contract type or misuse of fixed-term contracts can result in penalties
  • Administrative complexity is common, especially for international employers

BRIDGE IN Insight

Portugal offers excellent value for international hiring, with a skilled and growing talent pool, but payroll accuracy and contract compliance are essential from day one.

Payroll & Taxation (indicative)

Income Tax:

Progressive (14.5–48% brackets; withholding applied)

Social Security Contributions:
  • Employer: ~23.75%
  • Employee: ~11%

Payroll must be processed locally, with monthly reporting obligations to tax and social security authorities.

Calculations may vary depending on sector, CBA, and contract type.