How can I expand to Portugal with talent hiring and support in Vistas or Softlanding without opening a legal entity in the country?
To expand into Portugal with talent hiring support through visas or soft-landing options—without establishing a local legal entity—several proven approaches are available. These methods rely on third-party services that manage legal, HR, and compliance requirements on your behalf.
Key Approaches to Expansion Without a Local Entity
1. Employer of Record (EOR)
An Employer of Record (EOR) is the most reliable and widely adopted solution. The EOR acts as the legal employer for your team in Portugal, taking charge of employment contracts, social security, payroll, taxes, and compliance with local labor regulations.
Advantages:
-
- Fast onboarding, typically within days.
- No company formation is required, avoiding lengthy registrations.
- Full legal compliance while you keep control of daily operations.
- Flexibility to hire full-time staff, contractors, or remote employees.
- EOR provider fees often include legal/accounting for payroll and compliance, eliminating the need for your separate legal or accounting spend.
How it works:
You choose your talent and manage their work; the EOR ensures all employment obligations comply with Portuguese law.
2. Professional Employer Organization (PEO)
Some PEOs offer hiring and payroll solutions in Portugal without the need for your own entity. These services cover HR, compliance, and benefits, creating a compliant payroll environment.
Advantages:
-
-
- Streamlined recruitment, onboarding, and HR management.
- Maintains compliance with Portuguese employment law.
- Can be operational within days.
-
Risks:
-
-
- Compliance for job contracts must be managed carefully: improper contracts or legislation use may expose you to hidden legal or tax costs.
- Portugal mandates strict contract management—EORs guarantee compliance, while PEOs may not always provide fully compliant local contracts.
-
3. Visa and Soft-Landing Support
For talent from outside the EU or those requiring visas, Portugal offers several options. While D2 (entrepreneurs/investors) and D7 (passive income) visas exist, the D1 visa for highly qualified professionals is most common with an EOR setup.
-
-
- EORs can sponsor employment-based residency when direct sponsorship by your firm or PEO isn't feasible.
- Short-term visas can be used for contractors or project talent; long-term visas suit remote workers and entrepreneurs with soft-landing (initial residence permits and entry support) options.
- Some visa programs facilitate mobility and remote work without a local entity.
-
Support Solutions:
-
-
- Work with local visa consultants or immigration lawyers for correct visa acquisition.
- Combine visa support with EOR or PEO services to ensure legal employment status for your team throughout their visa duration.
-
4. Traditional Outsourcing
Talent is provided by local service companies that allocate employees to several clients. While practical, this is usually the most expensive path and does not ensure high engagement from workers.
5. Contractors (Freelancers)
Hiring independent contractors is possible but comes with significant compliance challenges.
-
-
- Contractors must handle invoicing and tax filings themselves.
- The administrative burden and risk of penalties are high; they lack social security protection.
- Most talent prefer formal employment contracts, resulting in a smaller candidate pool for contractor arrangements.
-
Summary
For businesses seeking to hire in Portugal without registering a local entity, partnering with an Employer of Record (EOR) delivers the best combination of compliance, efficiency, and access to local talent. Visa programs can be leveraged with EOR or PEO support for international hires, ensuring a legally sound and streamlined soft-landing process.
November 10, 2025