25+ Pros And Cons Of Doing Business In Portugal (Explained)

Portugal is a peninsular country in southern Europe. It acts as a gateway to trade within European nations and many other countries like Spain. The country holds the 25th position across the globe for doing business in the country.

Additionally, it also holds rank in the 10th position for starting a business in the country. One can set the business in Portugal within three days. 

However, there are some cons as well for establishing a business in the country. If you are looking for a business site to expand or start your business, then this article will help you. 

Benefits of doing business in Portugal The Drawbacks of doing business in Portugal 
Fewer legalization processesTerrorism prevails 
Trading across borders Lack of transparency

Advantages of Doing Business in Portugal

Geographic Location:

Portugal has a fabulous location from a business point of view. It connects with the European nations, South and North America. This leads to large exposure to different types of markets and an increase in business and investment opportunities.

It attracts a large number of business owners, international players, entrepreneurs, and investors to the country. 

Strong Business Relationships

The country has successfully established strong business relationships with its neighboring countries. This aids the country businesses to trade and market their services efficiently at the international level.

Innovation and technology:

Portugal is a highly advanced country in terms of technology. The country grabs a rank in 7th position among European nations for having advanced telecommunications services. The internet service is highly remarkable in the country and is available in almost all country corners. 

Multiple Industries are Booming:

Other sectors like research and development, pharmaceutical industry, engineering sector, manufacturing sectors are all booming in the country due to the availability of well-developed technology. 

Advanced Transportation System:

The transportation system is also well developed in the country. This makes it easy for business owners and entrepreneurs to visit different countries in a short timeline for business purposes.


Portugal offers ready-to-develop sites for businesses. Many business parks, complexes, and malls provide property to establish a business in the country. There are many airports and highways which connect the country and make transportation easy and efficient. 

Travelling is Easy:

Portugal has the 3rd best airport in the European countries known as Porto Airport. This connects the country’s internal states and makes it easier for business owners to travel across the world in less time.

Skilled workforce:

The education system in Portugal is efficient and well known for producing skilled minds. This skillful workforce fulfills the requirement of developing business in a variety of sectors.

More than 60% of Portuguese people learn foreign languages from elementary school. Research and development industries, biotechnological industries, and many more industries are booming in the country due to high-quality workforce availability.

This makes business owners and entrepreneurs attracted to the country and spread their companies. Many successful and large business companies have originated from the country. The credit goes to a highly skilled workforce which works rapidly and efficiently.

Tax System:

Portugal’s government provides highly attractive and business-friendly tax policies. The tax credits are between 10% to 20%. The corporate tax and VAT are comparatively lower than in other countries.

One can establish an offshore company in the country which has more tax relaxation. The ‘non-habitual resident program’ has many benefits for tax amounts.

This helps foreign companies and investors to develop in a country with less capital power. Moreover, for small businesses, the tax rate is comparatively lower, making it easier to grow.


Portugal is blessed with natural resources. Many sectors like agriculture, mining, and more are booming in the country. It also contributes to in exports, which brings foreign currency to the country.

Tourism also makes the economy of the country stronger and brings more business opportunities in the country. The wine production industry has also been developing in the country for the past few years.

Stable economy:

Even after suffering from the economic crisis as Greece, Portugal succeeds in maintaining a stable economy. The nation’s GDP is 24K Crore USD, which is a beneficial point for both business owners and investors.

This shows the power of the country to overcome any crisis of downfall effectively without continuing to suffer. This also makes the country an investor-friendly location.

Disadvantages of Doing Business in Portugal.

Enforcement of contracts:

It isn’t easy to get contracts enforced in the country. The procedure is highly time-consuming. It causes a delay in the development and growth of businesses. Approval of the business community is required as well as the legalization process from the government. This takes much time and energy if the company.

Crime rate:

The crime rate in the country is high, which makes the environment unsafe for development. Cybersecurity is weak in the country, which leads to many frauds. The lifestyle is also affected due to the high crime rate. 

Judiciary System:

The Judiciary system fails to control illegal acts and prevails in strict laws in the country. This makes an unhealthy and threatening environment for businesses and markets to develop and grow in the country.

The corruption rate is also high in the country, which partializes and brings hurdles in the way of development for small businesses and startups.


Portugal’s culture follows a hierarchy system. It is necessary to have a country resident in the company at any higher position for developing in the country.

This leads to an unhealthy environment for coworkers, and foreign investors and business leaders get fewer opportunities to build in the country. The business community also promotes residential companies over foreign companies to develop and grow. 

Climate change:

Portugal has a compassionate climate. There are more possibilities for natural calamities and uncertain climate change. This brings hurdles in the development and growth of the companies in the country.

Often, the company estates get destroyed in the calamities, which leads to a high loss to the company. It takes years for such companies to overcome the loss and develop again.

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