Another inevitable setback for expats seeking employment in Portugal is the country's bureaucratic red tape, which has derailed its economic growth. And that is certainly bad news for expats looking for stable employment, as most skilled professions require a license and certification from local offices. Consequently, to combat the old-fashioned bureaucracy, you can hire an agent to act on your behalf to apply and process employment papers.
Employment opportunities are not abundant, but that doesn't mean that no jobs are available. Teaching the English language is a good, promising career prospect.
Work Documents
Even though EU citizens do not need to have a work permit in order to be employed in Portugal, proof of residency is sometimes requested during job processing or is required in order to get a local driver's license. Hence, EU nationals have the option to apply for a residence permit from the Immigration and Border Control Department.
For non-EU citizens, a work permit and a residence permit are required in order to get employment and you must submit an application to the Portuguese Consular office in your home country before arriving in Portugal.
Working Conditions
The Algarve region is not only the hotspot for holidaymakers, but also for expatriate communities and job opportunities. Word of mouth works best in this part of Portugal; personal contact is your strongest asset to get a job.
All employees in Portugal are guaranteed a minimum monthly remuneration, the national minimum wage, which is set annually by special legislation at €554.17 per month.
Remuneration can be paid on a monthly, daily or hourly basis, as agreed by both parties. Salaries are paid by bank transfer, but there are some employers who still pay by cheque or cash. Whatever the form of payment is, the employee is entitled to a pay slip, which shows the breakdown of remuneration (gross pay, allowance, deductions, income tax, etc).
All employees in Portugal are entitled to a Christmas bonus (equal to one month's pay), paid on 15 December. Employees also receive holiday pay.
Normal working hours should not exceed eight hours per day or 40 hours per week. By law, Sunday is the compulsory weekly rest day.
Income tax
An employee's income tax rate varies according to the seven scales of annual income defined in Portugal; it can range from 10.5% for income below €4,544 to 42% for income in excess of €61,260.
On the other hand, tax for a corporation in Portugal for 2009 is 12.5% for income of up to €12,500 and 25% for income exceeding €12,500, with the addition of a local tax of up to 1.5%; 26.5% in total.
Portugal's personal income tax (Imposto sobre o Rendimento das Pessoas Singulares/IRS) is assessed annually and is below the EU average, although it has spiked in recent years.
A pay-as-you-earn (PAYE) system of income tax is practiced in Portugal, wherein employers withhold employees' tax at source. Non-resident employees are subject to a flat tax rate of 25% on Portuguese income.
Earning a living in Portugal is no walk in the park; more so finding a job can prove daunting for a newly arrived expat. Nevertheless, Portugal's pleasant environment and low cost of living certainly ease the burden while you are dealing with employment roadblocks.
More Expat Resources
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