As always, we’re here to break down the new rules. Portuguese authorities are tightening oversight of social security contributions for people who live in Portugal while working remotely for foreign employers. In the past, many of these situations fell into a legal grey area. Now, enforcement of the rules is becoming stricter.

Here’s a quick guide to help you determine whether the changes apply to you.

Step 1. Are you a tax resident of Portugal?
If not, this guide most likely does not apply to you.
If you are, move on to the next step.

Step 2. Does your employer have a company or branch in Portugal?
If yes, you generally do not need to take any action. Your employer is normally responsible for withholding and paying your social security contributions.
If not, continue to the next step.

Step 3. Ask your employer how your social security coverage has been arranged.
Ask a direct question: “Have you registered me with Portugal’s Segurança Social system and are you paying my social security contributions?”
If the answer is yes, you most likely do not need to do anything yourself.
If the answer is no, proceed to the next step.

Step 4. If your employer has not registered you with Segurança Social, contact Segurança Social directly.
They will be able to confirm what you need to do, which may include:
• Registering with the system yourself.
• Opening an atividade (registering with the Portuguese Tax Authority as self-employed).
• Formalising your employment status through another appropriate arrangement.

Useful resources:

Official Segurança Social website

Segurança Social Direta — your online account for checking your status, filing declarations and paying contributions

Portuguese Tax Authority (Autoridade Tributária) portal — for opening an atividade

Important: Do not register an atividade simply because you work for a foreign company. First, check with Segurança Social to determine which arrangement is appropriate for your specific circumstances.