Working & Employment

“Setúbal is the peninsula’s industrial and logistics hub, with a growing job market and convenient proximity to Lisbon”

Setúbal’s Job Market

Key Industries

• Automotive: AutoEuropa (Volkswagen) in Palmela — the region’s largest industrial employer (~5,000 workers)
• Pulp & paper: Navigator Company — plant in Setúbal
• Logistics & port: Port de Setúbal — cargo terminal, warehouse zone
• Tourism: hotels, restaurants, tours (Arrábida, Tróia, wine routes)
• Fishing & aquaculture: traditional sector, lota (fish auction)
• Cement industry: Secil (Outão)
• IT & services: growing sector, many work remotely for Lisbon companies

Unemployment Rate

The Setúbal district is at approximately 7–8% (2025), slightly above the national average (~6.5%). Youth unemployment is higher — ~18%.

Minimum Wage (2026)

Employment Contracts

Contract Types

Key Employee Rights

• Trial period (período experimental): 90 days (permanent), 15–30 days (fixed-term)
• Working hours: 40 hours/week, 8 hours/day
• Annual leave: 22 working days/year (from the first year)
• 13th and 14th salaries: subsídio de Natal (December) and subsídio de Férias (before holiday) — one monthly salary each
• Sick leave: from the 4th day, 55–75% of salary (paid by Social Security)
• Parental leave: 120–150 days for mother, 28 mandatory days for father

Dismissal

• By employee: 30 days’ notice (up to 2 years), 60 days (over 2 years)
• By employer: only for “just cause” (justa causa) or collective redundancy. Compensation — 14 days per year of service
• Labour court: Tribunal do Trabalho de Setúbal

Freelancing (Trabalhador Independente)

Recibos Verdes

The “green receipts” system for self-employed workers:

1. Open activity (abertura de atividade) — at Finanças or online via Portal das Finanças
2. Issue receipts — through Portal das Finanças for each service provided
3. Taxes: IRS (25% withholding when working for companies) + IVA (23%)

Simplified Regime (Regime Simplificado)

For turnover up to €200,000/year:

• Tax base = 75% of income (for services) or 15% (for goods)
• No obligation to maintain formal accounting

VAT (IVA)

• Standard rate: 23%
• Exemption: annual turnover up to €14,500 (Article 53)
• For digital services abroad — reverse charge

Social Security for Self-Employed

• Rate 21.4% on 70% of average income over 3 months
• First year: exemption (first-time activity opening)
• Details — Banking & Finances

Remote Work

Visas for Remote Workers

• D7 — passive income, min. €920/month
• D8 — digital nomads, min. €3,680/month
• Details — Visas & Residence

Coworking in Setúbal

• Sines Tecnopolo — tech park with office spaces
• Coworking spaces — emerging in the city centre
• Many expats work from cafés along the Luísa Todi waterfront

Setúbal is developing as a magnet for remote workers — close to Lisbon, affordable cost of living, and the nature of Arrábida. More — European Expats.

Job Search

Portals

IEFP — Centro de Emprego de Setúbal

Public employment centre: job search assistance, retraining courses, employer subsidies.

Programa Integrar

Migrant integration programme: Portuguese language training, job placement assistance, qualification recognition.

Starting a Business

Empresa na Hora

Company registration in 1 hour — online or at the Conservatória:

1. Choose a company name (from a list or check at RNPC)
2. Sign the articles of association
3. Receive NIPC (company tax number) — immediately
4. Register with Social Security

Cost: from €360 (online) — includes publication.

Key Business Taxes

Entrepreneurial Support

• IAPMEI — small business support agency
• Startup Portugal — startup certification
• Portugal 2030 — EU-funded financing programmes

Useful Links

Information current as of February 2026. Portuguese labour law is regularly updated — check requirements on official websites.