Working in Porto?

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Working in Porto

Do you plan on working in Porto? This city has been recognized for its thriving economy, wine exports, tourism and also its educational system. If you’re an expat looking for a job in Porto, get informed about working visas, the local economy, and more in this guide.

Local Economy

As Portugal's second biggest city, Porto has a thriving economy. Historically, Porto has been the biggest and most important city in the industrialized northwest of the country, and so many Portuguese and international corporations have their headquarters or main offices in the city, including EFACEC, Unicer, Porto Editora, and Grupo RAR. Additionally, Portugal's largest export company, energy giant Petrogal, has its main petrol refinery within close proximity of the city.

Porto's best known export is port wine, which not only carries the city’s name, but also contributes significantly to the local economy. Common job roles for expatriates working in Porto are senior management or technical positions in the businesses based there, as English teachers, or as academics in one of the many universities in the city.

Work Permits for Porto

As Portugal is an EU member, expatriates working in Porto that are EU citizens or hailing from Switzerland, Norway, Iceland, or Liechtenstein do not need a work permit, however, a residency permit is needed.

For those relocating to Porto from other countries, work permits are offered if you are married to a local, or you have a concrete offer of employment before arrival. If you have a job offer, then your prospective employer will start the process on your behalf, but you must then complete the application by providing the following:

  • Valid passport
  • Evidence of financial means
  • Work contract
  • Means of transport
  • Proof of health insurance

Be advised that this process can take up to eight months, so start well in advance of moving.

Income Taxation in Porto

Taxation in Portugal is paid by citizens to both the local and federal governments, and accounts for 32.5% of the total GDP. Income tax works on a progressive system in Porto and the rest of Portugal; this means that your income tax payment is calculated depending on your total income. For 2014, the rates were as follows:

  • In between 0 EUR and 7,000 EUR — 14.5%
  • In between 7,000 EUR and 20,000 EUR — 28.5%
  • In between 20,000 EUR and 40,000 EUR — 37%
  • In between 55,000 EUR and 80,000 EUR — 45%
  • In excess of 80,000 EUR — 48%

As an expatriate living and working in Porto for more than 183 days in a twelve month period, you will be regarded as a fiscal resident and required to pay income tax on your worldwide earnings. If you reside in Portugal for less than 183 days, you only have to pay tax on Portuguese income, but will be taxed at a flat rate of 25%.

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