Paulo Sérgio began his career as manager in 2003 and went on to be in charge of several teams, including Vitória Guimarães, Sporting CP, and Hearts in Scotland.

Os Belenenses – his most steady period, helping the Lisbon side finish in second position in the Segunda Liga in 1991–92 with a career-best eight goals, with the consequent promotion – F.C.

[4] In late April 2010, Paulo Sérgio reached an agreement to succeed Carlos Carvalhal at the helm of Sporting CP, effective as of July.

[7] Paulo Sérgio was appointed manager of Scottish Premier League club Heart of Midlothian on 2 August 2011, following the removal of his predecessor Jim Jefferies on the previous day.

[8] In October, the team withdrew their staff from all media events in protest at him being called in front of the Scottish Football Association following his remarks about referee Iain Brines after a defeat against Ayr United the following month.

[10] On 19 May 2012, Paulo Sérgio and Hearts won the Scottish Cup – the eighth overall for the club and the first in six years – after a 5–1 win over fellow Edinburgh side Hibernian.

[13][14] He managed to lead the side to the Europa League knockout phase, but the year 2013 started badly with seven consecutive games without a win; thus, he was sacked on 13 April.

[16] He made his debut against NK Maribor at GSP Stadium on 31 July in a 1–1 first leg draw in the third qualifying round of the 2013–14 UEFA Champions League,[17] with the tie being lost on the away goals rule.

[31] Though he improved their performance, earning himself the Manager of the Month award for June,[32] the Algarve team were relegated on the final day; he voted to stay with them even before they were restored to the league as a result of Vitória de Setúbal's irregularities.