The rates in 2026
| Portugal | Germany | |
|---|---|---|
| Employee | 11 % | pension 9,3 % + health 7,3 % + half the fund supplement (about 1,45 %) + care 1,8 % (2,4 % if childless over 23) + unemployment 1,3 % ≈ 21 % |
| Employer | 23,75 % | the same shares ≈ 20 %, plus accident insurance |
| Ceiling | none for employees | pension and unemployment: 8 450 € a month; health and care: 5 812,50 € a month |
| Self-employed | 21,4 % on 70 % of average monthly invoicing (20 % for sales), declared quarterly; first 12 months exempt | voluntary pension insurance for most trades; compulsory for some professions and via the Versorgungswerke; health insurance compulsory (statutory or private) |
| Company director | 11 % + 23,75 % on the salary, minimum base the IAS (537,13 €) | GmbH-Geschäftsführer with a controlling stake: exempt from statutory insurance |
Portugal has no contribution ceiling: a 200 000 € salary pays 22 000 € employee and 47 500 € employer contributions. Germany’s ceilings cap the total at roughly 26 000 € for the employee at any salary above 101 400 €. For high earners the Portuguese system is therefore the more expensive one for the employer, the cheaper one for the employee below the German ceiling.
- 34,75 % Portuguese total, no ceiling; about 41 % German total, capped
- 21,4 % Portuguese self-employed rate after a first year at zero
- 24 months maximum posting on an A1 certificate under Regulation 883/2004
- 66 years 9 months Portuguese pension age in 2026; 67 in Germany for those born from 1964
One system at a time: the EU rules
Regulation (EC) 883/2004 applies between the two countries:
- Where you work decides, not where you live or where the employer is. A German employed by a Portuguese company pays in Portugal; a German company employing someone who works from Portugal must register as an employer in Portugal (or use an employer of record) and pay the 23,75 %.
- Postings: an employee sent by a German employer to Portugal for up to 24 months stays under German insurance with an A1 certificate from the Krankenkasse or the DRV; the same in the other direction from Segurança Social.
- Working in both countries: the country of residence applies if a substantial part (25 % or more) of the activity is there; otherwise the employer’s country.
- Self-employed pay where they carry on the activity; a self-employed person who moves the activity to Portugal registers here and stops in Germany.
The certificate is the proof: without an A1 or a Portuguese registration, both systems can claim the contributions.
What the contributions buy
Portugal: public health (SNS) is financed by taxes, not contributions — registration follows from residence, not from paying. Contributions fund the old-age, disability and survivors’ pensions, sickness and parental allowances, unemployment benefit (for employees; a narrower allowance for the self-employed), and family allowances. Germany: five branches, each with its own fund; unemployment insurance covers the self-employed only on application; health insurance is compulsory for everyone, with private cover for higher earners and the self-employed.
German pensioners moving to Portugal keep their German health insurance through the S1 form: the SNS treats them and the Krankenkasse pays, and the German contribution on the pension continues.
Pensions: adding the years
Under the coordination rules each country pays a pension for its own years, and the years in the other country count towards the minimum. Portugal needs 15 years of contributions for an old-age pension and pays at 66 years and 9 months in 2026; Germany needs five years (Wartezeit) and pays the Regelaltersrente at 67 for those born from 1964, with earlier options after 35 or 45 years. A German with 30 years of German contributions and 5 in Portugal receives a German pension for 30 years and a Portuguese one for 5, both paid to Portugal. The Deutsche Rentenversicherung pays in full to residents of Portugal.
Steps for an employer moving staff
Posting of up to 24 months
A1 from the German fund before departure; no Portuguese registration; German payroll continues.
Longer or permanent
Register the employer with Segurança Social (NISS for the company), enrol the employee, monthly declaration of remuneration (DMR) and payment by the 20th.
Remote worker who moved
Same as permanent: the place of work is Portugal. An employer of record is the practical route for companies without a Portuguese entity.
Self-employed
Start of activity at Finanças, automatic registration with Segurança Social, quarterly declarations from the thirteenth month.
We register employers and employees with Segurança Social, run the Portuguese payroll, and handle the quarterly declarations of freelancers — with the A1 questions sorted first, in German if you prefer. Ask us.
Questions
I am a Rentner. Do I pay Portuguese contributions?
No. Pensions are not subject to Portuguese social contributions. Your German fund keeps deducting the health and care contributions from the Rente, and the S1 gives you SNS access.
Can I stay in the German statutory health insurance while working in Portugal?
Not as an employee of a Portuguese company: Portuguese law applies and German membership ends (voluntary continuation is possible only in limited cases). Posted workers on an A1 keep it for the posting.
Do Portuguese contributions have a ceiling for high salaries?
No. The 11 % and 23,75 % apply to the whole salary. Only the self-employed base is capped (at 12 × IAS a month).
Sources and official references
- Lei n.º 110/2009 (Código Contributivo), artigo 53.º — 34,75 %: 23,75 % employer, 11 % employee — checked 18.9.2026
- Decreto-Lei n.º 2/2018 — self-employed rate 21,4 % (25,2 % for sole traders under organised accounts), quarterly declaration — checked 18.9.2026
- Deutsche Rentenversicherung — Werte der Rentenversicherung 2026: pension 18,6 %, health 14,6 %, care 3,6 % (4,2 % childless), unemployment 2,6 %; ceiling 8 450 €/month — checked 18.9.2026
- Bundesregierung — Beitragsbemessungsgrenzen 2026 (health and care: 5 812,50 €/month; pension: 8 450 €/month) — checked 18.9.2026
- SGB V § 241 — general health contribution rate 14,6 %; SGB III § 341 — unemployment insurance 2,6 % — checked 18.9.2026
- Portaria n.º 358/2024/1 — Portuguese pension age 2026: 66 years and 9 months — checked 18.9.2026