Service agreement in Portugal: Template, Key Clauses and Local Law (2026)

What a service agreement is under Portuguese law A service agreement in Portugal is a contrato de prestacao de servicos, defined in article 1154 of the Codigo Civil as a contract by which one party agrees to provide the other with a certain result of its intellectual or manual work, with or without payment. The defining feature is that there is no legal subordination: the provider delivers a result or carries out an activity with autonomy, decides its own methods, and is not under the client authority in the way an employee is. A genuine independent provider usually works under the green receipts regime (recibos verdes), invoicing the client and carrying its own tax and social security. The central risk is the presumption of employment in article 12 of the Codigo do Trabalho. Where several listed indicators are present, the law presumes an employment contract exists, and the burden shifts to the client to prove otherwise. A paper that says prestacao de servicos does not settle the matter. ## The core rules that shape a Portuguese service agreement No legal subordination. This is the line between a service contract and employment. The provider works with autonomy; the client cannot direct the work like an employer and set fixed hours and a workplace. Article 12 presumption. The Codigo do Trabalho lists indicators such as the work being done at the client premises, the client setting the start and end times, the provider using equipment belonging to the client, payment of a regular fixed amount, and the provider performing management or leadership duties in the organisation. Case law reads the presumption as triggered when some of the indicators (in practice at least two) are present, after which the client must rebut it. Disguising employment as independent work is a very serious administrative offence. Recibos verdes. A genuine independent provider issues electronic green receipts and manages its own tax and social security. Where a provider works almost exclusively for one client, special rules on economically dependent self-employment and a client social security contribution can apply. Confirm the current thresholds. Freedom of contract otherwise. For a genuine service relationship the parties freely agree scope, result, fees, confidentiality, intellectual property and termination, subject to good faith and the Civil Code. ## Service contract, employment, or a works contract It helps to be clear which contract you need before drafting. An employment contract fits ongoing, subordinate work under the client authority. A service contract (prestacao de servicos) fits an autonomous provider who delivers a result or carries out an activity without being directed like an employee. A works contract (empreitada) is a near relative where the contractor takes on the risk of a finished result, such as construction; the service contract is more flexible and can cover either a defined result or a best-efforts activity. Choosing the right structure does not override the article 12 presumption, but it keeps the paperwork, the tax position and the social security treatment aligned with what is really happening. For a genuine service relationship, two habits protect both sides. First, define the services and any acceptance criteria clearly, so payment follows work done rather than attendance. Second, keep evidence of the provider independence: their own green receipts, their own equipment, their own hours and, ideally, other clients. If an inspection by the ACT or a court ever applies article 12, that evidence is what a client uses to rebut the presumption that the relationship was really employment. ## A usable template Adapt to your facts and have a Portuguese lawyer review it, especially the independence features. CONTRATO DE PRESTACAO DE SERVICOS / SERVICE AGREEMENT 1. Parties. [Client], NIPC [number], and [Provider], NIF [number], acting independently. 2. Nature. The Provider acts with autonomy and without legal subordination. No employment relationship arises. 3. Services and result. [Describe the services and the result to be delivered.] The Provider decides the method and organisation of the work. 4. Term. From [date] to [date], or until the result is delivered and accepted. 5. Fee. [Amount] against a green receipt (recibo verde), payable [dates or milestones]. The Provider bears its own tax and social security. 6. Independence. The Provider uses its own equipment, sets its own hours and may serve other clients, subject to confidentiality and conflicts. 7. Confidentiality and intellectual property. [Confidentiality; who owns deliverables and any assignment.] 8. Liability. [Standard of care, warranties, any limitation of liability.] 9. Termination. Grounds and notice, with no employment severance implication. 10. Governing law and jurisdiction. Portuguese law; courts of [city]. Signatures, NIF and NIPC, date. ## A short walk through the key clauses Nature and independence state the intention, but article 12 means the practice controls. Avoid building in the indicators of employment. Fee and green receipts should not mimic a salary. A fixed monthly amount for full-time, exclusive, supervised work is a classic trigger for the presumption. Intellectual property does not pass automatically, so state clearly whether the client owns the deliverables and record the assignment. ## Red flags to check before signing - A service contract covering what is really a subordinate role. Article 12 can presume employment and the client must rebut it.

• Work done at the client premises, on client equipment, at hours the client sets. These are listed indicators.
• A fixed monthly fee that looks like a salary, paid regardless of deliverables.
• Near-exclusive work for one client without attention to the economically dependent self-employment rules.
• Silence on who owns the deliverables. ## Keeping the agreement under control after signing A Portuguese service agreement carries duties across its life: invoicing by green receipt and acceptance of the result, honouring confidentiality and intellectual property, watching the economic-dependence thresholds, and keeping the relationship genuinely independent so article 12 never bites. Drafting from a clear template, checking that no clause or practice builds in the indicators of employment, and keeping deliverables, fees and dates in one place can sit in a single AI workspace tuned to how your company engages providers. Adira is built around that idea: it drafts from a template, models the contract as linked clauses so it can flag a risky or missing term, and keeps obligations and dates together. Adira is India-first today, with jurisdiction set per contract and an international mode for others; deep, verified coverage of Portuguese law is on its roadmap rather than established, so treat Portugal specific output as a draft for a Portuguese lawyer to confirm. This page is general information, not legal advice. Portuguese rules change, so confirm the current position for your situation.