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Neashore Portugal - for who is looking for a reliable and cost-effective way to scale your software development team.
Nearshoring to Portugal allows businesses direct access to highly skilled tech talent, cultural compatibility, and time zone alignment, without the overheads of hiring locally.
Portugal has become one of Europe’s most attractive nearshore IT outsourcing destinations, offering exceptional value, strong English proficiency, and a thriving tech ecosystem just a short flight from the UK or at the center of Europe.
Why Choose Nearshore in Portugal?
✅ Access Top Tech Talent
Tech Hub Growth: Lisbon and Porto rank among Europe's top tech cities with thriving startup ecosystems
Educational Excellence: Portugal produces over 50,000 university graduates annually, with strong STEM programs
Language Skills: High proficiency in English, Spanish, and French, alongside native Portuguese
Industry Expertise: Specialized talent in software development, fintech, renewable energy, and digital marketing
✅ Cost-Effective Scaling
Outsourcing to Portugal can cut development costs by up to 40% compared to UK-based teams, while maintaining the same high standards of quality, communication, and project delivery.
Competitive Salaries: 30-50% lower employment costs compared to Western European countries
No Hidden Fees: Transparent pricing structure with all-inclusive employer costs
Flexible Arrangements: Support for flexible-based employment
✅ Same Time Zone, Seamless Collaboration
Portugal shares the same time zone as the UK (GMT) and is only one time zone ahead of European Central Time, ensuring real-time communication, fast feedback loops, and full integration with your in-house team during working hours.
✅ Cultural and Business Alignment
Strong cultural ties, business ethics, and legal alignment with the EU make Portuguese teams easy to integrate, manage, and trust.
Our Nearshore Portugal Services
We help startups, SMEs, and enterprises build high-performing nearshore teams in Portugal across a range of services:
- Custom Software Development
- Dedicated Developer Teams
- Agile Project Delivery
- Cloud Architecture & DevOps
- UX/UI Design & Front-End Development
- Mobile App Development
- Ongoing Support & Maintenance
Employer of Record (EOR) Solutions
As your official Employer of Record in Portugal, we:
- Legal Compliance: Handle all employment law requirements and statutory obligations
- Contract Management: Draft and manage employment contracts in accordance with Portuguese labor law
- Risk Mitigation: Assume all employment-related legal risks and liabilities
- Quick Setup: Get your team operational within 4-5 business days
This solution is more cost-effective than a traditional Outsourcing provider, since all costs and fees are clear to our customer.
Comprehensive Payroll Management
- Monthly Payroll Processing: Accurate salary calculations including all deductions and contributions
- Tax Administration: Handle income tax, social security, and other statutory payments
- Benefits Administration: Manage health insurance, vacation entitlements, and statutory benefits
- Detailed Reporting: Monthly invoicing with transparent cost breakdowns
HR Support Services
- Onboarding: Complete employee orientation and documentation
- Performance Management: Support for reviews, disciplinary actions, and terminations
- Compliance Monitoring: Stay updated with changing Portuguese employment regulations
- Employee Relations: Local HR expertise for complex employee matters

Industries We Serve in Portugal
We serve many different industries:
Technology & Software Development
- Full-stack developers, DevOps engineers, QA specialists
- Agile development teams for SaaS and enterprise solutions
- Specialized expertise in fintech, healthtech, and e-commerce platforms
Customer Service & Support
- Multilingual customer support teams
- Technical support specialists
- Sales development representatives
Creative & Digital Marketing
- Graphic designers, UX/UI specialists
- Digital marketing experts, SEO specialists
- Content creators and social media managers
Finance & Administration
- Accounting and bookkeeping professionals
- Financial analysts and controllers
- Administrative support specialists
Portugal Employment Law & Compliance
We are fully compliant with local and EU laws and regulations, on taxes, employment, and data protection.
Key Legal Requirements
- Employment Contracts: Mandatory written contracts for all employees
- Working Hours: Standard 40-hour work week with overtime regulations
- Vacation Rights: Minimum 22 days annual leave plus 13 public holidays
- Termination Rules: Specific notice periods and severance requirements
Social Security & Taxation
- Employee Contributions: 11% of gross salary for social security
- Employer Contributions: 23.75% of gross salary for social security
- Income Tax: Progressive rates from 14.5% to 48% depending on income level
- Additional Benefits: Access to the national health service and unemployment benefits
🤝Getting Started with on Nearshore Portugal
Let's know your needs and start the process.
Our Onboarding Process
- Initial Consultation: Discuss your specific hiring needs and requirements
- Candidate Sourcing: Start the sourcing process for the talent that you need
- Employment Contracts: Draft and finalize legally compliant employment agreements
- Onboarding & Integration – Smooth setup, direct communication, and fast ramp-up.
- Payroll Setup: Configure payroll systems and payment schedules
- Ongoing Support: Continuous HR and compliance management
Pricing Structure
Transparent, All-Inclusive Pricing:
- Base employee salary (as agreed)
- Employer statutory contributions (23.75% of salary)
- Additional statutory costs (holidays, 13th month, etc.)
- Our management fee – fixed or % per employee per month
No hidden costs, no setup fees, no minimum commitments required.
📍 Why Portugal? Location Benefits at a Glance
- 🕐 Time zone aligned with the UK and Ireland (GMT)
- 🕐 One hour ahead of European Central Time
- 🧑🎓 Highly educated, English-speaking workforce
- 🛫 Short 2.5-hour flight from London and Paris
- 📈 Thriving startup and IT scene
- 🛡️ EU legal and data protection compliance (GDPR)
💬 Frequently Asked Questions
What is nearshore outsourcing to Portugal?
Nearshoring means partnering with development teams in nearby countries. Portugal offers an ideal nearshore destination for UK and European businesses looking to balance cost, quality, and proximity.
Is there a language barrier?
No. English is widely spoken in the tech sector, and all developers we work with are fluent communicators.
How quickly can a nearshore team be set up?
We can typically deploy a dedicated team within 3–4 weeks, depending on your requirements.
Do I have control over the team?
Yes. You maintain full oversight, while we handle recruitment, HR, and local support.
How quickly can I hire employees in Portugal through your service?
Once we receive all necessary documentation, we can have your employees legally employed and on payroll within 2-3 business days.
What's the difference between nearshore and offshore outsourcing?
Nearshore outsourcing involves partnering with companies in nearby countries (Portugal for UK/EU businesses), offering better time zone alignment, cultural similarities, and easier communication compared to offshore destinations in Asia or other distant regions.
Can I hire both Portuguese nationals and foreign workers?
Yes, we can employ both Portuguese citizens and international professionals to work in Portugal. We handle all visa and work permit requirements for eligible foreign candidates. We work closely with AIMA, but delays can be expected.
Who is legally responsible for the employees? As your Employer of Record, we assume all legal responsibility for employment compliance, statutory obligations, and employment law adherence. You retain full control over day-to-day management and work assignments.
What happens if Portuguese employment law changes?
We continuously monitor all legislative changes and automatically update our processes to ensure ongoing compliance. You'll receive notifications about any changes that might affect your employees, but we handle all implementation requirements, and we notify the employees and our customers.
How do you handle employee terminations?
We manage all aspects of employment termination following Portuguese law, including proper notice periods, severance calculations, and final payment processing. We'll guide you through the entire process to ensure full compliance.
How is pricing calculated?
Our total cost includes the employee's gross salary, all employer statutory contributions (approximately 23.75%), additional statutory costs (13th month salary, holiday pay), and our fixed monthly management fee. We provide detailed cost breakdowns before engagement.
When do I receive invoices, and how do payments work?
We invoice monthly in advance, typically by the 25th of each month, for the following month's payroll. Employees are paid their net salary on the last working day of each month, with all taxes and contributions paid directly to Portuguese authorities.
Are there any setup or cancellation fees? No, we don't charge setup fees, except for expats who require a visa, a Fiscal number, a Social Security number, and Fiscal benefits. We don’t charge any cancellation penalties or processing fees for a bonus. You can start or end the service with appropriate notice periods as outlined in our service agreement.