{"id":2112,"date":"2025-09-05T10:50:30","date_gmt":"2025-09-05T10:50:30","guid":{"rendered":"https:\/\/uhy.pt\/colaboradores-expatriados\/"},"modified":"2025-12-05T11:18:41","modified_gmt":"2025-12-05T11:18:41","slug":"expatriate-employees","status":"publish","type":"post","link":"https:\/\/uhy.pt\/en\/expatriate-employees\/","title":{"rendered":"Expatriate Employees"},"content":{"rendered":"<p class=\"p1\"><strong>Update 2026<\/strong><\/p>\n<p class=\"p1\">\n<strong>Challenges in the Correct Treatment of Social Security<\/strong><\/p>\n<p class=\"p1\">\nIn a globalised economic context, it is increasingly common for Portuguese companies to send employees abroad (expatriates) or to welcome foreign professionals to Portugal. Although strategic for international growth, these situations require strict control of social security obligations, under penalty of fines, contribution debts or loss of social protection for the worker.<br \/>\nDealing with these situations correctly requires knowledge not only of Portuguese legislation, but also of European Regulations (EC) No. 883\/2004 and 987\/2009, Bilateral Social Security Agreements and the updates introduced by the 2026 State Budget, which reinforces the digitisation of procedures and cross-checking of data between countries.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p class=\"p1\"><strong>1. What is an expatriate worker?<\/strong><\/p>\n<p class=\"p1\">\nAn expatriate is considered to be an employee temporarily transferred to perform duties in another country (for example, a Portuguese national sent to Brazil for 12 months) or a foreign professional seconded to work in Portugal, either under a direct contract or through secondment from a foreign company.<br \/>\nBoth cases raise challenges in terms of tax framework, documentary evidence, time limits and coordination between national regimes.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p class=\"p1\"><span class=\"s1\"><b>2. Main Challenges in Social Security Compliance<\/b><\/span><\/p>\n<p>&nbsp;<\/p>\n<p class=\"p1\"><span class=\"s1\"><b>a) Choose the appropriate regime<\/b><\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">The first step is to determine which Social Security regime is applicable. This depends on several factors:<\/span><\/p>\n<ul>\n<li class=\"li1\"><span class=\"s1\">Whether there is a bilateral Social Security agreement between Portugal and the country in question;<\/span><\/li>\n<li class=\"li1\"><span class=\"s1\">Whether the country is a member of the European Union\/EEA or not;<\/span><\/li>\n<li class=\"li1\"><span class=\"s1\">Whether it is a <b>temporary assignment<\/b> or a <b>change of residence and contractual relationship<\/b>.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Example:<\/b><b><\/b><\/span><\/p>\n<ul>\n<li class=\"li1\"><span class=\"s1\">A Portuguese person seconded to Germany for 1 year will, as a rule, continue to be covered by <b>Portuguese Social Security<\/b>.<\/span><\/li>\n<li class=\"li1\"><span class=\"s1\">A Brazilian hired directly by a Portuguese company will be subject to the <b>general Portuguese regime<\/b>, except if on temporary assignment and under the <b>Portugal-Brazil Agreement<\/b>.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p class=\"p1\"><span class=\"s1\"><b>b) Mandatory documentation: A1, certificates, agreements<\/b><\/span><\/p>\n<p>For workers posted within the EU\/EEA\/Switzerland, it is mandatory to issue form A1, proving that they remain affiliated to the Portuguese Social Security system.<br \/>\nIn countries with bilateral agreements, a posting certificate must be obtained from Social Security.<br \/>\nNew for 2026: the Electronic Posting Register (RED) has come into force, allowing the digital submission of the A1 form and online monitoring of the validity and extension of postings, facilitating control by Portuguese and foreign authorities.<br \/>\nThe absence of these documents may result in double taxation and fines for non-compliance.<\/p>\n<p class=\"p1\">\n<p>&nbsp;<\/p>\n<p class=\"p1\"><span class=\"s1\"><b>c) Secondment terms and limits<\/b><\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">The secondment regime has time limits:<\/span><\/p>\n<ul>\n<li class=\"li1\"><b><\/b><span class=\"s1\"><b>Regulation (EC) 883\/2004<\/b>: up to 24 months (extendable in certain cases);<\/span><\/li>\n<li class=\"li1\"><span class=\"s1\">Bilateral agreements vary, but generally set limits between 12 and 36 months.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p class=\"p1\">If the secondment exceeds the time limit, the worker may be required to register with the social security system of the destination country and will no longer be covered by the Portuguese system.<\/p>\n<p>&nbsp;<\/p>\n<p class=\"p1\"><span class=\"s1\"><b>d) Collection and payment of contributions<\/b><\/span><\/p>\n<p>When the employee remains covered by Portuguese Social Security, the company must continue to declare their remuneration through the Monthly Remuneration Declaration (DRM) and make the payment in Portugal.<br \/>\nIn cases where the foreign regime is applicable, the company may have to register for local tax purposes and appoint a legal representative in order to comply with that country&#8217;s contribution obligations.<br \/>\nThe 2026 State Budget strengthens the cooperation mechanisms between Portuguese Social Security and its EU counterparts, providing for more severe penalties in the event of failure to register or comply with reporting obligations.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p class=\"p1\"><span class=\"s1\"><b>3. Additional Issues to Consider<\/b><\/span><\/p>\n<p>&nbsp;<\/p>\n<p class=\"p1\"><span class=\"s1\"><b>a) Variations in Social Security Protection<\/b><\/span><\/p>\n<p class=\"p1\">Not all countries guarantee the same rights (maternity, sickness, accidents at work). In cases where there are gaps, it is advisable to take out supplementary private insurance, especially when travelling to countries outside the EU or without an agreement in force.<\/p>\n<p>&nbsp;<\/p>\n<p class=\"p1\"><span class=\"s1\"><b>b) Tax Residency vs. Contributory<\/b><\/span><\/p>\n<p class=\"p1\">A change in tax residence does not necessarily imply a change in the tax regime. These areas are distinct and require coordination between taxation and HR, ensuring that the employee understands their situation.<\/p>\n<p>&nbsp;<\/p>\n<p class=\"p1\"><span class=\"s1\"><b>c) Communication with the employee<\/b><\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">The expatriate employee must be clearly informed:<\/span><\/p>\n<ul>\n<li class=\"li1\"><span class=\"s1\">Of their Social Security status;<\/span><\/li>\n<li class=\"li1\"><span class=\"s1\">Of their rights and responsibilities;<\/span><\/li>\n<li class=\"li1\"><span class=\"s1\">Of how to activate social protection if necessary.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p class=\"p1\"><span class=\"s1\"><b>4. Best Practices for Companies with Expatriates<\/b><\/span><\/p>\n<ul>\n<li class=\"li1\"><b><\/b><span class=\"s1\">Check if there is an international agreement with the country in question;<\/span><\/li>\n<li class=\"li1\"><span class=\"s1\">Request A1 forms or certificates before relocation;<\/span><\/li>\n<li class=\"li1\"><span class=\"s1\">Establish an internal international mobility protocol;<\/span><\/li>\n<li class=\"li1\"><span class=\"s1\">Consult Social Security and lawyers specializing in international labor law;<\/span><\/li>\n<li class=\"li1\"><span class=\"s1\">Monitor the Legislative changes in the countries where it operates.<b><\/b><\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Final Notes<\/b><\/span><\/p>\n<p class=\"p1\">The management of social security for expatriate employees is one of the most sensitive issues in international mobility. An incorrect framework can lead to debts, loss of rights and reputational damage.<br \/>\nThe 2026 State Budget introduces significant improvements in the digitisation and supervision of secondments, reinforcing companies&#8217; responsibility to comply with their contribution obligations.<br \/>\nSuccess depends on advance planning, specialised technical support and transparent communication between the company, the employee and the authorities.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Update 2026 Challenges in the Correct Treatment of Social Security In a globalised economic context, it is increasingly common for Portuguese companies to send employees abroad (expatriates) or to welcome foreign professionals to Portugal. Although strategic for international growth, these situations require strict control of social security obligations, under penalty of fines, contribution debts or [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1219,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[51],"tags":[],"class_list":["post-2112","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tax-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/uhy.pt\/en\/wp-json\/wp\/v2\/posts\/2112","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/uhy.pt\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/uhy.pt\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/uhy.pt\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/uhy.pt\/en\/wp-json\/wp\/v2\/comments?post=2112"}],"version-history":[{"count":2,"href":"https:\/\/uhy.pt\/en\/wp-json\/wp\/v2\/posts\/2112\/revisions"}],"predecessor-version":[{"id":3271,"href":"https:\/\/uhy.pt\/en\/wp-json\/wp\/v2\/posts\/2112\/revisions\/3271"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/uhy.pt\/en\/wp-json\/wp\/v2\/media\/1219"}],"wp:attachment":[{"href":"https:\/\/uhy.pt\/en\/wp-json\/wp\/v2\/media?parent=2112"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/uhy.pt\/en\/wp-json\/wp\/v2\/categories?post=2112"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/uhy.pt\/en\/wp-json\/wp\/v2\/tags?post=2112"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}