• Table of Contents

  • What are the social charges of companies in Portugal? All Know Social Charges Portugal
  • Introduction
  • Social charges of companies in Portugal
  • Social security contributions
  • Contributions to the pension fund
  • Contributions to the health fund
  • Benefits for employees
  • Paid vacation
  • sick leave
  • Maternity and paternity leave
  • Tax advantages for companies in Portugal
  • Competitive tax rates
  • Tax incentives for investments
  • Double taxation agreements
  • Conclusion

What are the social charges of companies in Portugal? All Know Social Charges Portugal

Introduction

Portugal is an attractive country for foreign companies due to its favorable economic environment, skilled labor and competitive production costs. However, before settling in Portugal, it is important to understand the social charges that companies must pay. In this article, we'll look at corporate payroll taxes in Portugal and provide useful information for companies considering setting up in the country.

Social charges of companies in Portugal

Social charges are compulsory contributions that employers must pay to finance the social benefits of their employees. In Portugal, social charges are calculated on the basis of the employee's gross salary and are paid by the employer. Social charges include social security contributions, pension fund contributions and health fund contributions.

Social security contributions

Social security contributions are the main social charge that employers have to pay in Portugal. Social security contributions are calculated on the basis of the employee's gross salary and are paid by the employer. Social security contributions are used to finance social benefits such as health care, unemployment benefits and retirement benefits.

The social security contribution rate varies according to the type of employment and the salary of the employee. The social security contribution rate for full-time employees is 23,75% of the employee's gross salary, of which 11% is paid by the employer and 12,75% is paid by the employee. For part-time employees, the social security contribution rate is 34,75% of the employee's gross salary, of which 23,75% is paid by the employer and 11% is paid by the employee.

Contributions to the pension fund

Pension fund contributions are another social charge that employers have to pay in Portugal. Pension fund contributions are used to fund employee retirement benefits. The rate of contribution to the pension fund varies according to the type of employment and the salary of the employee.

For full-time employees, the pension fund contribution rate is 23,75% of the employee's gross salary, of which 11% is paid by the employer and 12,75% is paid by the employee . For part-time employees, the pension fund contribution rate is 34,75% of the employee's gross salary, of which 23,75% is paid by the employer and 11% is paid by the employee .

Contributions to the health fund

Health fund contributions are another social charge that employers have to pay in Portugal. Contributions to the health fund are used to fund employee health care. The rate of contribution to the health fund varies according to the type of employment and the salary of the employee.

For full-time employees, the health fund contribution rate is 11% of the employee's gross salary, of which 6,5% is paid by the employer and 4,5% is paid by the employee . For part-time employees, the health fund contribution rate is 16% of the employee's gross salary, of which 11% is paid by the employer and 5% is paid by the employee.

Benefits for employees

In addition to payroll taxes, employers in Portugal must also provide social benefits to their employees. Benefits include paid vacation, sick leave, maternity leave and paternity leave.

Paid vacation

Employees in Portugal are entitled to a minimum of 22 days of paid leave per year. Employees are also entitled to one additional day off for every five years of service with the company.

sick leave

Employees in Portugal are entitled to paid sick leave in the event of illness or accident. Sick leave is paid at 100% of the employee's salary for the first 30 days and 55% of the employee's salary for the following days.

Maternity and paternity leave

Female employees in Portugal are entitled to 120 days of maternity leave paid at 100% of the employee's salary. Employees are also entitled to 20 days of paternity leave paid at 100% of the employee's salary.

Tax advantages for companies in Portugal

In addition to a favorable economic environment and a skilled workforce, Portugal also offers tax advantages to foreign companies that set up in the country. Tax advantages include competitive tax rates, tax incentives for investments and double taxation agreements with other countries.

Competitive tax rates

Portugal offers competitive tax rates for foreign companies. The corporate tax rate is 21%, which is lower than the European Union average. Portugal also offers competitive tax rates for dividends, interest and royalties.

Tax incentives for investments

Portugal offers tax incentives for investments in certain regions of the country. Companies that invest in disadvantaged regions can benefit from a corporate tax reduction of up to 50%.

Double taxation agreements

Portugal has signed double taxation agreements with many countries, which allows foreign companies to reduce their tax burden. Double taxation agreements allow companies to avoid paying taxes on income that has already been taxed in another country.

Conclusion

Portugal is an attractive country for foreign companies due to its favorable economic environment, skilled labor and competitive production costs. However, before settling in Portugal, it is important to understand the social charges that companies must pay. Social charges include social security contributions, pension fund contributions and health fund contributions. In addition to payroll taxes, employers in Portugal must also provide social benefits to their employees. Portugal also offers tax benefits to foreign companies, including competitive tax rates, tax incentives for investments, and double taxation agreements with other countries.