Hire developers in Portugal confidently and compliantly

A short guide to hiring a dedicated offshore team
in Portugal

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Hire developers in Portugal confidently and compliantly

Short guide to hire a dedicated offshore team in Portugal

Hire Team

Why build a team in Portugal

Portugal is a high-income, developed country with a bustling tech scene growing in its capital Lisbon. The nation's business culture focuses a lot on creating relationships of loyalty and trust.

With a highly innovative and dynamic ICT Sector, which already represents nearly 10% of its GDP, Portugal welcomes new start-ups all over the country.

If you want to take your business to the next level regarding technological innovation and productivity, look no further than Portugal for your next software development team. This country has all the ingredients for success in offshore software development, including a high English proficiency rate, a solid IT infrastructure, and vibrant tech hubs.

Talent Overview

Amount of developers

Amount of developers infographic

Top tech hubs

Most developers can be found in Lisbon, Porto, Aveiro, and Braga.

Top tech hubs infographic

Portugal's pool of talent

Portugal's pool of talent


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10.3 million

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Official language:


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GMT +0:00

IT Market Overview

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Industry revenue:

980.4 million EUR

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Europe industry rank

19 (out of 26)

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IT and Business Service Market Size:

914.4 million EUR

How to build a team in Portugal with ALLSTARSIT

Before hiring in Portugal, employers must abide by the strict employment regulations established by the local authorities while navigating regional benefits, payroll, tax, and HR laws – a time-consuming process.

ALLSTARSIT makes hiring, onboarding, and caring for employees in Portugal easy.

Indian employeesIndian employee
Indian employee

Develop your team in Portugal with AllSTARSIT

Indian employees

With one seamless integration and local legal entity, we streamline the following:

  • hiring process

  • payroll

  • compliance

for your international workforce.

Hire Your Team
Portuguese employeesPortuguese employees
Portuguese employees

Develop your team in Portugal with ALLSTARSIT

Portuguese employees

Trusted by global leaders

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Services we offer

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Tech Team Augmentation

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Tech Support Center

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Employer of Record

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Candidates' Sourcing & Recruiting

Services we offer


Tech Team Augmentation

Tech Support Center

Employer of Record


Candidates' Sourcing & Recruiting

Employment Conditions Overview

ALLSTARSIT takes care of everything for you – we have a 360° approach with a full recruitment cycle

Payroll Cycle

Salary is paid monthly in Portugal

Employer taxes

26% of gross salary

Minimum Wage

EUR 775,83 per month

Overtime Pay

Standard working hours are 8 hours per day and 40 hours per week. The standard work week is from Monday to Friday.

Overtime pay is mandatory and is not included in the salary. Hours worked outside of standard working hours are considered overtime. Employees can work a maximum of 2 hours of overtime per day. For overtime hours, employees are paid:

  • 125% of the hourly rate for the first hour

  • 137.5% of the hourly rate for the following hours

  • 150% of the hourly rate for weekends and bank holidays

Paid Leave

Portugal treats public holidays as non-working days. Employees in Portugal are entitled to 22 days of paid vacation.

Sick Leave

Employees are allowed 30 days of sick leave over a period of 12 months, and are entitled to receive sick pay for up to 1,095 days.

Sick pay is made by the employer for the first 3 days of absence due to sickness, at a rate of 89.00% of the regular salary. From the 4th day onwards, the Social Security takes over the payment, according to the rates below:

  • 55.00% of the regular salary for the next 30 days

  • 60.00% of the regular salary between 31 and 90 days

  • 70.00% of the regular salary between 91 and 365 days

  • 75.00% of the regular salary over 365 days

Public and Provincial Holidays

Portugal celebrates 13 national holidays and one regional holiday based on the employee's location.

Notice Period

Notice period in Portugal depends on the length of employment:

13th Month Pay Bonus

It is mandatory to provide a 13th (summer holiday) and 14th (Christmas) month salaries for employees in Portugal. This is paid annually by December 15th of each year.

Our Hiring Timeline

We've made the process simple with only 4 phases


Initial client meeting

We discuss the best way to meet your needs, exchange ideas, and clearly define goals for our collaboration.



We source and pre-screen the most suitable candidates for your project and conduct candidate evaluation interviews.



We handle all the legal issues related to the hiring process and ensure compliance with both our employee's and client's national laws.


Onboarding & Admin

We onboard your new team member and handle the entire local employment process, handling all the compliance, payroll, and HR admin.

Build your team with ALLSTARSIT

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