Article by Kateryna Ilechko - Lawyear at International Atlantic Services

Portugal continues to attract individuals from around the world who are seeking not only a high quality of life but also the opportunity to live and work in the European Union. For many, the natural question is whether obtaining a residency permit in Portugal also grants the right to work. The answer, in most cases, is yes.

In fact, the vast majority of Portuguese residency permits allow the holder to engage in professional activity in the country. Whether through traditional employment, freelance work, or business ownership, residency status typically includes full access to the local labour market, provided the appropriate legal and administrative procedures are followed.

This applies to several of the most common types of residency permits. For example, the ARI, commonly known as the Golden Visa, is often associated with passive investment, but it also allows the holder to work in Portugal. Similarly, the D7 visa, which targets individuals with passive income (such as pensions, dividends, or rental income), includes the right to work, either as an employee or on a self-employed basis. The same applies to the D8 visa, Portugal’s offering for digital nomads and remote workers, which provides a residency route for those employed or self-employed abroad but wishing to reside in Portugal.

For those choosing to work as employees under any of these permits, it is essential to ensure that the employment contract is reported to ACT (Autoridade para as Condições do Trabalho – the Portuguese Authority for Working Conditions). This step formalizes the employment relationship under Portuguese labour regulations and ensures compliance with local labour standards.

Those opting for self-employment or freelance work must register their professional activity with the Portuguese Tax Authority (Autoridade Tributária). In some sectors, professional licensing or registration with a regulatory body may also be required, for instance, in fields such as healthcare, legal services, or construction.

Alternatively, many residency holders choose to establish a business in Portugal. This is a viable option under all three residency permit types and is often an attractive path for entrepreneurs or investors. Companies can be incorporated following standard procedures or through the use of customized Articles of Association, which must be approved by the Commercial Registry. Entrepreneurs are free to choose the company name, type (such as LDA or SA), corporate structure, and business activity, identified by a specific CAE code (Classificação das Atividades Económicas).

Establishing a business also involves several key administrative steps, including registration with the tax office, social security registration, and potentially sector-specific licensing. While the process is well-structured, it requires careful attention to legal details to ensure compliance and avoid unnecessary delays.

At IAS, we assist clients in navigating these requirements with confidence. Our team provides full support throughout the process: assessing eligibility for residency permits, preparing and reviewing employment contracts, registering professional activities, and establishing businesses from the ground up. We help ensure that all legal, tax, and regulatory obligations are met, giving our clients peace of mind as they build their life and career in Portugal.

In conclusion, obtaining residency in Portugal is not just a matter of living in the country – it is also an open door to meaningful professional opportunities. Whether working for a Portuguese company, operating as a freelancer, or launching a new venture, residents are empowered to participate fully in the economic life of the country. With the right guidance and legal support, this transition can be smooth, compliant, and successful.