TL;DR: Expat families in Portugal typically work in one of four ways: remotely for a foreign employer (D8 visa or EU freedom of movement), self-employed with Portuguese clients (requires registering as trabalhador independente), employed by a Portuguese company (D1 visa for non-EU, registration for EU), or not working at all (D7 passive income visa). Portuguese salaries are significantly lower than Northern European equivalents — most expat families who move for financial reasons do so while earning foreign income. Understanding which path applies to you shapes your visa route, tax position, and monthly budget.
One of the most common questions families ask before moving to Portugal is some version of: can I work there, and what does that actually look like? The answer depends entirely on your situation — whether you’re EU or non-EU, whether you plan to keep a foreign job, whether you want to find Portuguese employment, or whether you’re planning to freelance locally.
This guide covers the four main working paths for expat families, what each involves practically, and the honest truth about Portuguese salaries and the job market.
Path 1: Working Remotely for a Foreign Employer
This is the most common working situation for expat families who move to Portugal for cost-of-living reasons. You keep your existing job — UK, US, Irish, or wherever — and work from Portugal.
Visa route
- Non-EU families: D8 Digital Nomad Visa (if income meets the higher threshold of approximately €3,480/month for the main applicant) or D7 Passive Income Visa (lower threshold, more flexible income documentation). See our D8 guide and D7 guide for the full picture on each.
- EU families: No visa needed. Register residency at your local Junta de Freguesia and with AIMA. You are legally entitled to live and work in Portugal.
Tax position
Once resident in Portugal, you are typically taxed in Portugal on your worldwide income — including your foreign salary. Portugal’s progressive income tax rates apply (up to 48% for higher earners). Double tax treaties (Portugal has them with the UK, US, Ireland, and most EU countries) prevent you from being taxed twice on the same income, but they don’t mean you pay no tax — they determine which country taxes you.
The old NHR tax regime — which gave remote workers a flat 20% rate — was replaced in 2024 by the IFICI incentive (NHR 2.0). The new regime is more targeted. Not all remote workers automatically qualify. Get cross-border tax advice before you move, not after your first Portuguese tax return arrives. For UK families specifically, see our UK-Portugal tax treaty guide.
Employer considerations
Many expat families discover a complication they didn’t anticipate: their employer may not be comfortable with them working from Portugal, even if the role is fully remote. The issue is not permission — it’s tax and employment law. When an employee is based in a different country, the employer can in some circumstances create a “permanent establishment” in that country, creating tax obligations for the company. Some employers have blanket policies against this; others manage it case by case.
Before assuming your current remote role transfers seamlessly to Portugal, have an explicit conversation with your employer’s HR or legal team. Most large companies have handled this before. The answer is usually yes with some documentation — but it needs to be confirmed, not assumed.
Path 2: Freelancing or Contracting
Freelancers and independent contractors — whether continuing existing client relationships or building new ones from Portugal — need to register as trabalhador independente (self-employed worker) with the Portuguese tax authority (Autoridade Tributária e Aduaneira, or AT).
Registering as self-employed in Portugal
Registration is done online via the Portal das Finanças once you have your NIF. You select the activity code (código de atividade) that corresponds to your work. You will then issue invoices (recibos verdes — literally “green receipts,” Portugal’s self-employment invoice system) for all income.
Portugal has a simplified tax regime for lower-earning freelancers (regime simplificado) that applies automatically if annual income is below €200,000. Under this regime, a fixed percentage of your revenue is treated as taxable income (the coefficient varies by activity type — typically 35% for services). The remainder is treated as expenses without needing to itemise them. This simplifies administration considerably for straightforward freelance income.
Social security contributions
Self-employed workers in Portugal pay social security (Segurança Social) contributions — currently 21.4% of declared income, with a calculation based on quarterly earnings. This catches many freelancers by surprise: it is an additional cost on top of income tax, not instead of it. Build it into your budget from day one.
New self-employed residents may be exempt from social security contributions for the first 12 months — verify current rules with a Portuguese accountant (contabilista certificado) as this has been subject to change.
Visa route for freelancers
- Non-EU freelancers with foreign clients: D8 (if income meets threshold) or D7
- Non-EU freelancers building a Portuguese client base: This is more complex — you are not a remote worker for a foreign employer, which is what the D8 is designed for. Discuss with an immigration specialist whether D7 or another route is more appropriate.
- EU freelancers: Register residency and trabalhador independente status — no additional visa required.
Path 3: Employment by a Portuguese Company
Finding employment with a Portuguese employer is an option — but one that comes with an important caveat: Portuguese salaries are significantly lower than Northern European equivalents. The national minimum wage in 2026 is €870/month. The average salary across the economy is approximately €1,400–€1,800/month gross. Even in higher-paying sectors (tech, finance, legal), salaries in Portugal are typically 30–50% below equivalent roles in the UK, Germany, or the Netherlands.
For expat families who moved to Portugal partly for the cost of living advantage, taking a Portuguese salary often narrows or eliminates that advantage. The families who make this work well are usually those in senior roles in multinationals with Portuguese offices (where salary scales are partially set by the parent company) or those whose quality-of-life calculation doesn’t centre on financial arbitrage.
Sectors with stronger employment prospects
- Technology: Porto and Lisbon both have growing tech hubs. Companies including Farfetch, Critical TechWorks (BMW), Natixis, Unilever, and various startups have Porto or Lisbon offices with English-language roles. Salaries are better than the Portuguese average but still below comparable UK or German roles.
- Tourism and hospitality: Large sector, English-speaking roles plentiful, but salaries are low.
- Education: English teaching in private language schools is accessible for native English speakers. Not well-paid but widely available.
- Finance and consulting: Lisbon in particular has a cluster of shared service centres for large European companies. Roles exist; competition is higher.
- Healthcare: Regulated profession — foreign qualifications typically need recognition before practice. The process is managed through the relevant professional body (Ordem dos Médicos, Ordem dos Enfermeiros, etc.).
Visa route
- Non-EU workers: D1 Work Visa — requires a job offer from a Portuguese employer before applying. Your employer initiates much of the process. This route takes 3–6 months minimum.
- EU workers: No work visa required. Register as a resident and you can work for any Portuguese employer immediately.
Path 4: Not Working (D7 Passive Income)
Some families move to Portugal with one working partner and one non-working partner, or with neither partner working — relying instead on savings, pensions, investment income, or rental income from property at home. This is the D7 Passive Income Visa route and it remains the most widely used pathway for families relocating to Portugal.
The non-working partner is included as a dependent on the main applicant’s D7 and has full residency rights. They can subsequently take up employment or self-employment once resident — residency rights are not conditional on staying non-employed.
→ See our D7 Visa complete guide
Portuguese Salaries: The Honest Picture
This is something many families discover later than they should. Portugal has a genuinely lower cost of living than Northern Europe — but it also has significantly lower wages. For families making a move primarily for financial reasons, the calculation only works if income is earned at foreign rates and spent at Portuguese costs. A family earning Portuguese salaries will find the cost savings considerably smaller than expected.
| Role | Typical gross monthly salary in Portugal | Rough UK equivalent |
|---|---|---|
| National minimum wage | €870 | ~£1,700 |
| Software engineer (mid-level) | €2,500–€4,000 | £4,000–£7,000 |
| Marketing manager | €2,000–€3,500 | £3,500–£5,500 |
| Teacher (private school) | €1,200–€2,000 | £2,800–£4,000 |
| Nurse | €1,400–€2,200 | £2,800–£4,000 |
| Accountant | €1,800–€3,000 | £3,000–£5,000 |
These are gross figures — income tax and social security contributions reduce take-home pay further. Portugal’s social security employee contribution is 11% of gross salary. Income tax is progressive from 14.5% to 48%.
Working and Children: The Practical Questions
For families with young children, the working picture in Portugal has some practical positives worth noting:
- Childcare costs are lower. Private creches cost €400–€800/month in Porto — significantly less than equivalent UK nursery fees. Public creches are subsidised and income-assessed (though waiting lists apply).
- School hours are shorter than the UK. Portuguese state school days typically finish at 5:30pm with after-school activities (ATL — Actividades de Tempos Livres), but the structure is different from UK schools. Factor this into working day planning, particularly for younger children.
- Extended family support. Portugal has a strong culture of extended family involvement in childcare — useful context if you’re building local relationships, less immediately relevant for expat families arriving without family nearby.
- Flexibility is genuinely easier. Portugal’s pace of life and working culture — particularly outside formal office environments — tends to be more accommodating of school runs and family commitments than equivalent roles in London or other Northern European cities.
Finding Work in Portugal: Practical Starting Points
If you’re looking for Portuguese employment before or after your move:
- LinkedIn — most international and tech company hiring in Portugal happens here. Searching for roles in Porto or Lisbon with “English” in the job description narrows to roles accessible to non-Portuguese speakers.
- IEFP (Instituto do Emprego e Formação Profissional) — Portugal’s public employment service. More relevant for Portuguese-language roles.
- Expat Facebook groups — “Expats in Porto” and “Porto Professional Network” regularly feature job postings and referrals. Word of mouth in Portugal’s smaller professional community is genuinely effective.
- Recruitment agencies — Hays, Michael Page, and Adecco all operate in Portugal and handle some English-language placements.
- Direct company applications — companies with Porto or Lisbon offices including Farfetch, Natixis, Volkswagen Financial Services, Bosch, and Critical TechWorks all hire English-speaking professionals.
Tax rates, social security rules, visa requirements, and salary benchmarks change. Verify current details with a qualified Portuguese accountant and immigration specialist before making decisions. Nothing here constitutes legal, tax, or immigration advice.
For remote workers based in Portugal: a VPN is a practical tool for maintaining secure connections to employer networks and accessing UK or US streaming outside work hours. NordVPN is the most commonly used by the Porto remote working community — currently up to 77% off + 3 extra months on a 2-year plan from €2.99/month, covering up to 10 devices simultaneously. Also useful for securing connections on coworking and public WiFi.
Also worth adding from day one: NordPass — a password manager from the same Nord Security team. Remote workers setting up in Portugal create a lot of new accounts fast (NIF portal, SNS, AIMA, Finanças, utilities, banking, school). A password manager prevents the inevitable locked-account spiral. From €1.39/month on a 2-year plan (50% off), Family plan from €2.49/month covering 6 users.
Planning your move? Download our free family relocation checklist — visas, schools, healthcare, and everything you need for the first 30 days.