Your business can handle payroll in a variety of ways in Portugal.u003cbr/u003eu003cbr/u003e• branch can be set up and arrange payroll. The parent company retains responsibility for legal compliance, while and the branch handles matters of administration and reporting to the tax authoritiesu003cbr/u003eu003cbr/u003e• A subsidiary business can be set up, handling payroll in-house or outsourcing to a local specialist businessu003cbr/u003eu003cbr/u003e• You could utilise a Professional Employer Organisation (PEO). This business will handle all elements of recruitment and payroll, taking ownership of legal compliance so you do not need to establish a Portuguese business entity. While this is the costliest option, it's also the least labour-intensive.