Working in Portugal
Working in Portugal offers a compelling mix of professional opportunities, a high quality of life, and favorable business conditions, making it an increasingly popular destination for international companies and remote workers alike. The country has positioned itself as a tech hub in Europe, with a growing startup ecosystem, competitive labor costs, and a highly educated, multilingual workforce.
Attractive workforce and business environment
Portugal ranks highly in global talent competitiveness, placing 24th in the IMD World Talent Ranking 2022 and 26th in the Global Talent Competitiveness Index. A key advantage is the high English proficiency, with Portugal ranked 9th globally by Education First, facilitating seamless communication with international teams. The workforce is known for its strong work ethic, technical skills, and openness to global collaboration, making it ideal for companies in tech, customer support, and digital services.
The business environment is stable and supportive, with government initiatives encouraging innovation and foreign investment. Portugal’s location in the Western European time zone (same as London) and direct flights to major European cities enhance its appeal for distributed teams. Additionally, the country offers good infrastructure, strong IP protection, and EU membership, ensuring legal and operational stability for international employers.
Cost-effective and scalable talent solutions
Labor costs in Portugal are competitive compared to other Western European countries, offering a favorable cost-benefit ratio for businesses seeking high-quality talent without premium salaries. This makes Portugal ideal not only for startups testing new markets but also for established companies looking to scale efficiently.
For foreign employers, hiring can be streamlined through an Employer of Record (EoR) service, which allows companies to onboard employees legally without establishing a local entity. This solution handles payroll, tax compliance, benefits administration, and legal obligations, enabling faster and safer market entry. Whether hiring a single employee or building a full team, EoR services provide flexibility and compliance, reducing administrative burden and risk.
Quality of life and employee experience
Beyond economics, Portugal offers an exceptional quality of life, consistently ranked among the top travel and living destinations worldwide. With a mild climate, beautiful coastlines, rich cultural heritage, and excellent healthcare, it attracts and retains top talent. Cities like Lisbon, Porto, and smaller hubs such as Braga and Coimbra combine modern amenities with affordable living, making them attractive for both local and expatriate professionals.
For global companies, offering roles in Portugal can enhance employer branding and employee satisfaction. The country’s work-life balance, safe environment, and vibrant lifestyle contribute to higher employee engagement and retention, which are critical for long-term success.
October 14, 2025