Managing Partner vs. Employee: What's the Difference?
A managing partner (sócio-gerente) is someone who simultaneously holds a stake in the company's share capital (is a partner) and performs management functions (is a manager). Unlike an employee, the managing partner does not have a subordinate employment contract.
📌 The managing partner is not required to receive a salary. The law does not impose a minimum remuneration for managers.
Is It Mandatory for the Managing Partner to Receive Remuneration?
No. In Portugal, the law does not require managing partners to receive remuneration for their management activity. The decision is defined:
If Not Receiving a Salary, Do They Have to Pay Social Security?
If the managing partner effectively works in the company
If the manager performs management functions (even without declared remuneration), they are required to register with Social Security.
⚠️ Even without a salary, if you work in the company you must contribute to Social Security.
Contribution base
| Situation | Minimum Monthly Contribution Base |
|---|---|
| No defined remuneration | 1.5 × IAS (≈ €805) |
| With defined remuneration | Agreed remuneration amount |
| Option for actual remuneration | Remuneration actually received |
The managing partner's Social Security contribution rate is 21.4%.
Advantages of Not Receiving a Salary
From the company's perspective
From the managing partner's perspective
Disadvantages of Not Receiving a Salary
Alternative: Profit Distribution vs. Salary
| Salary (Category A) | Profit Distribution (Cat. E) | |
|---|---|---|
| IRS Taxation | Progressive rates (up to 53%) | Flat rate of 28% |
| Social Security | Yes (mandatory) | No |
| Specific deductions | Yes (up to €4,462/year) | No |
| Withholding tax | Monthly (IRS tables) | 28% at the time |
💡 The best strategy depends on the volume of income, family situation and company objectives.
Summary: What You Can and Cannot Do
| Situation | Is It Legal? |
|---|---|
| Managing partner without defined remuneration | ✅ Yes |
| Managing partner working without SS contributions | ❌ No |
| Profit distribution as alternative income | ✅ Yes |
| Manager with employment contract + salary | ✅ Yes (specific cases) |
| Not declaring activity to Social Security | ❌ No |
Frequently Asked Questions
Can I be a managing partner and simultaneously have an employment contract?
Generally no - except in specific situations recognised by law.
What is the recommended minimum salary for a managing partner in 2026?
There is no legal minimum. Many accountants recommend a monthly remuneration equal to or greater than 2 × IAS (≈ €1,074 in 2026).
🏢 Have questions about partner remuneration in your company? Talk to our specialists - we analyse the best strategy for your case.
