More and more freelancers are moving to Portugal to work on a wage portage basis. This particularly advantageous status enables you to retain your autonomy and flexibility while benefiting from essential social security coverage. This guide presents the key information you need to successfully work on a wage portage basis in the Land of the Carnations.
The wage portage in Portugal
Breathtaking landscapes, mild temperatures all year round, an exceptional quality of life… Portugal has it all. The country is one of the favorite European destinations for the French, with more and more tourists, retirees and workers visiting every year.
Portugal’s culture and way of life are also very similar to France. On the economic front, the country’s growth rate remains respectable, and its flagship sectors – agriculture, industry, the service sector and tourism – offer genuine opportunities for ported employees.
Above all, working on a wage portage basis in Portugal means enjoying a pleasant pace of life and environment.
- This form of employment gives you the freedom to choose your assignments and to organize your working hours, while retaining the social protection of salaried employment.
- In Portugal, wage portage is widely used, and local portage companies support both nationals and foreigners.
- Wage portage is also an attractive option for auto-entrepreneurs who want to test the waters before taking the plunge.
- The steps required for this type of activity are much simpler than setting up a new company, as are the steps for laying aside this activity in the future.
Why work on a wage portage basis in Portugal?
Cost of living : 20% lower than in France
The statistics are unanimous: Portugal is one of the European countries with the lowest cost of living. Compared to France, the average difference is 20%, which is a huge advantage in terms of purchasing power.
While electricity and gasoline prices are slightly higher than in France, food prices are unbeatable: on average 30% lower in Portugal! Not only that, rent is more affordable and security is optimal.
Property prices are especially attractive in some of Portugal’s outlying regions. The average price is 1,187 euros per square meter, 1,090 euros for houses and 1,243 euros for apartments.
An advantageous tax framework
Because of its tax advantages, Portugal has attracted many French expatriates, including retirees. Retirees benefit from a total tax exemption for ten years from the date of their first residence, provided they reside in Portugal for at least six months of the year.
As far as workers are concerned, a distinction must be made between those with non-habitual resident status, whose income is taxed at a fixed rate of 20% for 10 years, and other workers, whose tax rates range from 14.5% to 48%.
Because there is no inheritance tax, and wealth and property taxes are low, Portugal is the ideal destination if you want to pay less taxes.
Simplified procedure for setting up a business
Without the proper support, doing business in a foreign country can be a real obstacle course. In Portugal, the various procedures involved in setting up a business are centralized and managed by a single office.
In practical terms, setting up a sole proprietorship (uni-pessoal) or a joint-stock company (por quotas) involves filling out just a few forms. Once the articles of association have been drawn up in the presence of a notary, all you have to do is file a declaration of commencement of business with the tax authorities, and your company is set up.