Employer of Record (EOR) and PEO in Portugal
Portugal, officially recognized as the Portuguese Republic, is located in Southwestern Europe with a population of over 10 million. The country’s GDP of over USD 238 billion makes Portugal one of the countries experiencing a significant economic recovery.
Due to Portugal’s renewed economic strength, it has become a major European tech hub with the presence of global organizations like Nokia, Ericsson, and Bosch.
Porto and Lisbon are Portugal’s most famous cities, and the world recognizes them as culturally vibrant and vital economic hubs. Due to the cities’ wealth of highly skilled tech talent, global organizations are attracted to the country to hire and build a global remote team.
With lower employment costs compared with other major European cities, it’s no wonder Portugal attracts global organizations and is an important global supply market for tech products and talent.
While there are numerous advantages to hiring talent from Portugal and expanding into the country, navigating the Portuguese employment laws can be challenging for global organizations. For this reason, partnering with an Employer of Record (EOR) Portugal platform or a global Professional Employer Organization (PEO) is the best way to hire and enter the Portuguese market.
This article highlights everything you need to know about hiring talent and expanding into Portugal compliantly.
Employer of Record (EOR) in Portugal
An Employer of Record (EOR), or a global Professional Employer Organization (PEO), is a third-party entity that helps global companies hire independent contractors and full-time employees. It also enables them to handle all employment-related activities when hiring or building a team in a new country.
The Employer of Record (EOR) Portugal platform enables global organizations to hire contractors and full-time employees, onboard talent, handle payroll management, and ensure full compliance with employment laws and tax regulations. As the organization’s legal employer, the Employer of Record (EOR) Portugal platform handles all legal responsibilities and requirements, thereby protecting and shielding the organization from legal liabilities in Portugal.
How does an Employer of Record (EOR) Portugal platform work?
An Employer of Record (EOR) Portugal platform helps global organizations compliantly hire, onboard, pay, and ensure compliance in Portugal without setting up a subsidiary or an entity.
An Employer of Record enables organizations to hire employees and contractors. The platform also helps organizations pay employees globally, onboard talent, manage benefits administration and ensure the organization complies with Portugal’s employment laws. As a result, the Employer of Record (EOR) Portugal platform provides top-tier services for companies planning to build a formidable team in Portugal.
Benefits of an Employer of Record in Portugal
Establishing a team in Portugal without setting up a subsidiary
Hiring and expanding into any new market is always challenging and time-consuming. For most countries, a crucial requirement is to have a local presence in the country of employment. However, this process is usually strenuous and especially challenging for organizations that want to hire one or two talent from the country. But with an Employer of Record (EOR) Portugal platform, organizations can hire and pay Portuguese talent without setting up subsidiaries in the country. The EOR acts as the legal employer on behalf of the organization and handles all the legal requirements. By partnering with an Employer of Record platform, there is no barrier to hiring or carrying out employment-related activities in Portugal.
Efficient and accurate payroll management
Ensuring a global team’s efficient payroll management process takes time and effort. Organizations will have to deal with the complexities of payments in multiple currencies, compliance requirements of cross-border payroll, and the accuracy and speed of employee payments.
With the payroll automation process of an Employer of Record, payroll management is seamless. Organizations can make accurate and timely payments to their employees wherever they are with a global Professional Employer Organization (PEO) Portugal platform.
Compliance with Portugal’s employment laws & tax regulations
Compliance is crucial to every business. For organizations planning to expand or hire from Portugal, it is vital for the organization to ensure full compliance with the country’s employment laws. However, an Employer of Record (EOR) Portugal platform will ensure that the organization hires, onboards talent, manages payroll efficiently, and carry out all employment-related activities compliantly.
Save time, money, and resources
When a company plans to establish an entity or a subsidiary in a new market, the process is usually time-consuming, expensive, and resource-intensive. Renting office spaces, obtaining government approvals, and other employment-related activities can be overwhelming for any firm. However, one of the key service offerings of an Employer of Record (EOR) Portugal platform or a global Professional Employer Organization (PEO) platform is to enable global organizations to efficiently build teams and hire in Portugal without setting up a subsidiary.
Skuad — an Employer of Record in Portugal
An Employer of Record offers tremendous benefits for companies planning to expand or build a team in Portugal. It solves the challenges of compliance with employment laws, reduces the cost of building a team in the country, and takes care of the legal requirements of starting business operations in Portugal. Also, Employer of Record (EOR) Portugal or a Professional Employer Organization (PEO) Portugal platforms like Skuad provide seamless solutions to hiring and onboarding talent and ensure employees get accurate payments on time.
To know more about Skuad, book a demo today.
