Employer of Record in Portugal: Hiring Without an Office
Portugal. A business haven where many are expanding their ventures. Sure, the climate and the food are amazing, and so are tax advantages for foreigners, but also because of the highly-skilled workforce – easier to hire thanks to the Employer of Record (EOR) framework.
Don’t worry if you’re not familiar with this term yet; you’ll be at the end of this article. But know this now: this way of employing people abroad, without having an office in another country, saves you time, effort, and resources. So, if you want to expand your business to Portugal and grow your team there, you’re in the right place.
We’re about to answer entrepreneurs’ main doubts about how an Employer of Record in Portugal works, including identifying the right employees, how to reach them, and the main points to evaluate when choosing the ideal EOR.
What You’ll Learn:
Employer of Record in Portugal: What it Is and How it Works
What’s an Employer of Record?
How to Find the Ideal Employer of Record in Portugal
Employer of Record in Portugal: What it Is and How it Works
Many think they must establish a physical office in Portugal to hire a team locally.
But that’s not true. You can do it, but you don’t have to. The process of building a team in a country where you don’t have a subsidiary can be challenging, especially when trying to navigate the myriad of laws and regulations. This complexity often leads to confusion and uncertainty. The solution is partnering with an Employer of Record in Portugal.
What’s an Employer of Record?
It’s a way of employing people without being established in a country and avoiding employee misclassification.
Teaming up with a local company specialized in this type of business can help you from the start – even if you need help recruiting the best talent and don’t know where to find it (not all EORs do this, but BRIDGE IN does, so give us a call if you need a hand).
In practical terms, the EOR will deal with the whole hiring and employing process on your behalf:
Legal and Administrative Responsibility: the EOR is legally responsible for employment-related tasks and compliance. This includes payroll, taxes, benefits, and ensuring adherence to local labor laws.
Hiring and Onboarding: the EOR handles the hiring process, including onboarding new employees. This involves preparing contracts according to local laws and handling all administrative paperwork.
Management of Employment Risks: the EOR assumes risks associated with employment, such as legal disputes or issues related to termination.
Support Services: they provide ongoing employee support, including HR services, payroll queries, and resolving employment-related issues. So, the EOR handles all the bureaucracy. But you’re the one dealing with your team. Nothing changes in communication, everyday workflow, and other needs you have. Only the legal and bureaucratic stuff stays on the EOR’s side.
Though you can work with a global EOR, we highly advise choosing a local one if you’re considering settling in a specific country.
How to Find the Ideal Employer of Record in Portugal
We get it: you can’t find the perfect EOR by just chinking into a platform that compares them all. Truth be told, it’s challenging to make the best decision for your business.
There’s the endless war between going local or global, the one offering the cheapest service, the other with the best reviews, and so on. The competition is fierce, and you want to choose the best at your first take. So, we get your frustration. But there’s a way to ease your path. Make sure the EOR checks all these boxes:
A 100% transparent pricing model: how much will you pay the EOR? Will you do it monthly or yearly? How does the pricing model work? Some companies reduce fees as the number of employees increases, too. So, make sure you’re familiar with the pricing model from the beginning, and there are no hidden fees.
It’s legally established in Portugal: though this isn’t mandatory, we encourage you to choose one that is. Why? Because they know laws and regulations like no one else, which protects your business from the start. And let’s not forget that the whole point of working with an Employer of Record in Portugal is having them established there instead of your business – so everything remains legal and compliant. Make sure the company you choose can legally operate in Portugal so every requirement and labor law is always met.
Has a wide range of services: trust us, you’ll need them. Your Employer of Record in Portugal can’t be responsible for handling legal and fiscal processes only – the wider the service range, the better (while assuring 100% quality). So, look for an entity that not only handles the everyday tasks (like onboarding, payroll processing, benefits administration, or compliance management) but also focuses on your business’ tax optimization so you grant fewer employment costs – as BRIDGE IN does.
Legit testimonials and case studies: not many have this public; it’s a fact (as it can handle sensitive data from clients), but don’t be shy to ask. Make sure your EOR has examples of successful cases in creating teams in Portugal. You need that positive reassurance to guarantee that you’re indeed choosing the ideal Employer of Record in Portugal.
High level of expertise: your EOR needs to master everything you don’t: legal and cultural intricacies; deep understanding of local laws, regulations, and tax payments; different, compliant employment solutions (tax beneficial, ideally) and best practices for Portuguese and foreign workers.
Technology and integration: extra points if your EOR does it all in an all-in-one platform, sharing every piece of information with you in real time (we’re almost there, so join our newsletter to be the first to know when it goes live). Not having a user-friendly platform isn’t a blocker, as long as you still receive every data and analytics you need on each employee. Ensure your EOR shares it all with you – even when you don’t ask.
Safe risk and crisis management: it can happen – might as well worry about this from the beginning, then when you actually need it. Imagine some law or regulation changes overnight, or that there’s a government crisis and everything needs to be handled with (extra) care and attention… Does your EOR guarantee that? Well, ask them directly. Being able to mitigate potential legal or financial risks related to employment is critical in your decision.
Excellent customer support: check if the Employer of Record in Portugal has a dedicated team of experts ready to answer all your questions. This team needs to be responsive. It doesn’t have to answer you the second after, but it does need to be available and respond in working time. Problems can happen, and new doubts can appear (they will), so you must know who to contact.
Ensure you have all your questions answered from the beginning. We suggest a discovery call with each EOR you have under the radar. That’ll help you reach a wiser decision. Don’t rush your decision. Opting for an Employer of Record in Portugal and choosing the perfect one will make your business thrive while remaining legal.
