Portugal: Investing

FDI in Figures

After several years of steady growth, the flow of foreign direct investments (FDI) started to decline since 2007, and they contracted more due to the global recession in 2009. Despite a slight recovery in 2010, foreign investments have decreased since the beginning of 2011, following the deterioration of public accounts. Investors fear a scenario similar to that of Greece.

The FDI in Portugal is considered as a priority to the government. The country has recently embarked on the development of renewable energies, specifically solar energy (the country has the second largest solar power station in the world) and wave energy (obtained from wave movements), sectors that could provide new opportunities to foreign investors. Portugal offers a diversified economy and benefits from its membership to the European Union; however, the bureaucratic and legal burdens can be a hindrance to FDI.

Why You Should Choose to Invest in Portugal

Strong Points

Portugal's strong points are:
- The low labor costs;
- Its geographical situation. Portugal act as a bridge between 3 continents: Europe, Africa, America;
- its temperate climate;
- its socio-political stability and the non-existence of terrorism; and
- the stability of its currency.
You can consult the Ministry of the Economy website.

Weak Points

Portugal's weak points are its weak demography and a certain rigidity in the labor law.

Government Measures to Motivate or Restrict FDI

Government policies have followed the priority established by the Prime Minister, to promote the country's appeal to foreign investors. In order to do this, simple taxation procedures have been put in place, effective warehousing and transport logistics have been set up (especially the Sines terminal in the South-West of the country), as well as improvements in telecommunication infrastructures, etc. An agency for investment and foreign trade has been established: the AICEP.
Other measures have been implemented, including making the labor law more lenient in order to increase the workforce flexibility, and setting up a special aid regime for large projects (over 25 million EUR).

Bilateral Investment Conventions Signed By Portugal

Portugal has signed bilateral agreements with almost fifty countries (not including the EU).
To see the list of countries, click here.
To see the conventions, click here.

Procedures Relative to Foreign Investment

Freedom of Establishment

Yes

Acquisition of Holdings

Portuguese law allows a taking up of the capital or the acquisition of a Portuguese company up to 10% or more.

Obligation to Declare

Foreign investors may carry out all types of activities in the same conditions as a local investor. Foreign investment in Portugal is, on principle, free of all administrative control. The only formality that the foreign investor must comply with is registration, for statistical reasons, within 30 days of the investment.
Finally, investment projects "presenting a particular interest for the Portuguese economy" (projects over 4.9 million euros, especially those creating jobs, allowing industrial reconversion, ensuring the development of a priority region, or introducing new technologies) are subject to a particular procedure managed by the Institute for Investment, Trade and Tourism in a restructured Portugal "AICEP".
The agency for the promotion of foreign investment in the country can provide information about the authorizations necessary for setting up.

Competent Organization For the Declaration

AICEP

Requests For Specific Authorizations

There are no restrictions on foreign investment in Portugal, but only an analysis of the legality of the project (applicable also to any project of national capital).
Consult the Guide for investors.

Investment Opportunities

Investment Aid Agency

AICEP
Institute for support for SMEs and investment (IAPMEI)

Tenders, Projects and Public Procurement

Tenders Info, Tenders in Portugal
Ted - Tenders Electronic daily, Business opportunities in EU 27
DgMarket, Tenders Worldwide

Other Useful Resources

Portuguese Tourist Institute

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