Workforce Payments Guide Portugal

Last updated: Dec 17, 2023

Payroll Frequency
Fiscal Year
1 January- 31 December
Employer Taxes
Employee Costs
Central Bank
Banco de Portugal
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3rd Party Payments

Income taxes must be withheld from every payment and remitted monthly to the local tax office. All tax payments and reports must be filed to the local tax office.

Portugal uses a pay-as-you-earn (PAYE) system, adjusted by annual tax return filing. Additional payments or refunds are made based on the tax returns filed. Social Security, Tax and Customs authority and the Compensation fund payments are due on the 20th of the month following the salary payment (Additional payments concerning July salary are paid by the 20th of August) the payment method can be Homebanking (only with Portuguese account), ATM or check.

Payments Coverage

Papaya Global fully supports payments in Portugal.

The funding currencies include AED,AUD,CAD, CHF, DKK, EUR, GBP, HKD, NZD, SEK, SGD, USD. The payout Currency is EUR payments are made on the same day.

Contractor Payments

Papaya Global supports payments to contractors in Portugal. The payout currency may vary based on the receiver bank account setup when receiving foreign currencies. it is advised for contractors to reach out to their bank to confirm how foreign currencies are handled

Payroll Frequency



IBAN Example Portugal


IBAN in print PT76 0035 0651 9929 1816 8939 4
Country code PT
Digit Code 76
Bank Code 0035
Bank Account Number 99291816893


In Portugal, the Know Your Customer (KYC) process is regulated by several laws, including the Portuguese Criminal Code and Law 83/20171. The KYC requirements are set out by Notice 1/2022 of the Bank of Portugal and Regulation 2/2020 of the Portuguese Securities Market Commission.

For corporates, the KYC process requires the following information:

  • Headquarters address
  • Identification number (should be made through the card named Cartao de Identificacao de Pessoa Colectiva)
  • Shareholder identification for those holding more than 25% of the voting rights
  • Board of directors identification

Banking Regulations

In Portugal, cross-border workforce payments are impacted by several specific laws and regulations:

  • Portuguese Criminal Code and Law 83/2017: These laws regulate the Know Your Customer (KYC) process, which is crucial for cross-border transactions.
  • Notice 1/2022 of the Bank of Portugal and Regulation 2/2020 of the Portuguese Securities Market Commission: These regulations set out the KYC requirements.
  • Portuguese Labor Laws: These laws, including the Portuguese Constitution (Constituicao da Republica Portuguesa) and Labor Code (Codigo do Trabalho), cover the fundamental rights of workers. They regulate wages, working hours, health, and safety, which can impact cross-border workforce payments, as well.
  • EU Legislations: As a member of the European Union, Portugal is subject to EU legislations, which can impact cross-border transactions.

Opening a Bank Account

To open a company bank account in Portugal, the following requirements should be met:

  • Physical Presence: Organizations do not have to be physically present in Portugal to open a bank account with national banks. However, the presence of a statutory representative may be required, or the presence can be fulfilled through an authorization.
  • Tax Identification Number (TIN): Legal persons must provide the bank with their Portuguese TIN, which can be obtained by appointing a tax representative resident in Portugal. If the legal person is established in an EU member state or Norway, Iceland, and Liechtenstein, an equivalent number issued by the competent foreign authority is sufficient.

If you visit a bank branch in person, you can open a bank account on the same day. However, some banks may allow opening an account online, this is the case for residents of Portugal.

International Banks

Several large foreign banks operate in Portugal. Here are a few of them:

  • Deutsche Bank (Germany)
  • N26 (Germany)
  • Oney Bank (France)
  • BNP Paribas (France)
  • Citibank (US)
  • Bankinter (Spain)
  • Wizink (Spain)

Major Local Banks

Here are some of the major local banks in Portugal:

  • Caixa Geral de Depositos, S.A. (CGD): CGD is the largest bank in Portugal and 100%-owned by the Portuguese government. It is a universal bank, having a substantial market share in retail and corporate banking in Portugal.
  • Banco Comercial Portugues, SA (BCP or Millennium BCP): Established in 1985, BCP operates as a universal bank, providing a broad range of retail, private, corporate and investment banking products and services.
  • NOVO BANCO, S.A.: Novo Banco is a successor of Banco Espirito Santo (BES) established in August 2014 by the Bank of Portugal as a bridge bank.
  • Banco BPI, SA
  • Banco Santander Totta, SA

Local B2C Payments Tools

In Portugal, there are several local Business-to-Consumer (B2C) payment tools available. Here are a few of them:


Multibanco is a fully-integrated interbank network in Portugal that links the ATMs of 27 banks in Portugal. It provides a wide range of payment services, such as mobile phone top-ups, concert ticket purchases, and payments for goods and services at participating merchants.


MB WAY is a mobile payment service and app provided by Multibanco. It allows users to make purchases online and in-store, send and receive money instantly, and use and withdraw money from ATMs using a mobile phone.


Payshop provides a simple and secure way for consumers to pay for a variety of goods and services, including utility bills, mobile phone top-ups, and more at local stores that have partnered with Payshop.

SEPA Direct Debit

SEPA Direct Debit is a Europe-wide Direct Debit system that allows merchants to collect Euro-denominated payments from accounts in the 34 SEPA countries and associated territories.


Cryptocurrencies in Portugal are legal, and the government has acknowledged their potential as an alternative means of payment and investment. However, cryptocurrencies do not have legal tender status and thus do not qualify as fiat currency, nor are they considered “money”.

In 2019, the Portuguese Tax & Customs Authority (PTA) declared that buying or selling cryptocurrency is tax-free in Portugal. Specifically, the PTA stated that crypto transactions are not subject to capital gain taxes or value-added tax (VAT).

Moreover, several businesses in Portugal have started accepting cryptocurrency payments. Each cryptocurrency company must be fully licensed by the Bank of Portugal as a virtual asset service provider (VASP) before commencing economic activities. Compliance with Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) rules is crucial for successful licensing.

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