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Portugal

Portugal offers a unique blend of innovation, quality of life, and economic opportunity within the European Union.

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Lisbon

Sources: DG for Communication

Euro (€)

Sources: DG for Communication

Portuguese

Sources: DG for Communication

10.7M

Sources: Eurostat

Corporate Tax Rate 20% (2025)

A reduced 16% rate applies to SMEs on the first €50,000 of profit

Portugal's 20% corporate tax rate, combined with a lower 16% rate for SMEs, creates a competitive and supportive framework for businesses of all sizes.

R&D Tax Credit Up to 82.5% (2025)

Up to 82.5% tax credit on R&D investment expenses

Portugal offers one of Europe's most generous R&D incentives, SIFIDE II, which provides a substantial tax credit to companies investing in innovation.

ESNA SNS#1: Fast Startup Creation Score 83% (2025)

Efficiency of starting a business and administrative support

Portugal has made significant strides in digitalising its services, offering an efficient and straightforward process for entrepreneurs to launch their businesses.

GDP Growth 1,9% (2025)

Annual real GDP growth rate.

Portugal's resilient economy is projected to grow steadily, driven by a strong tourism sector, increasing exports, and significant foreign investment.

ESNA SNS#6: Access to Finance Score 100% (2025)

Availability of public and private funding for startups

With a perfect score for access to finance, Portugal's thriving startup ecosystem is strongly supported by a diverse range of venture capital and public funding options.

Economic Sentiment Indicator (ESI) 104,2 (2026)

Portugal ranks favourably for its business-friendly environment, with efficient processes for trading across borders and resolving insolvency.

Labour Cost €18.20/hr (2024)

Labour market cost per hour.

Portugal's competitive labour costs, combined with a talented and multilingual workforce, offer a significant strategic advantage for businesses in Western Europe.

Top Personal Income Tax Rate 48% (2025)

Progressive rates start from 12.50% up to 48%

Portugal's progressive personal tax brackets ensure a fair contribution to fund the country's public services, including its national healthcare system and social security.

Euro Health Consumer Index Score 13rd (2026)

Overall measure of national health system performance.

Portugal's national health service (SNS) provides universal access to healthcare, and the country is committed to ongoing improvements in quality and patient care.

Global Happiness Rank 60th (2024)

Evaluates national wellbeing and overall life satisfaction

With its sunny climate, vibrant culture, and friendly communities, Portugal provides a high quality of life that contributes to the happiness of its residents.

Working-Age Employment Rate 78.5% (2024)

Percentage of population aged 20-64 that is employed

Portugal boasts a high employment rate, reflecting a dynamic labour market and a skilled workforce, particularly in the tech and tourism sectors.

ESNA SNS#8: Digital First Score 97% (2025)

Measures the digital-by-default availability of key public services.

A global leader in e-government, Portugal provides comprehensive digital services by default, making interactions with public administration seamless and efficient.

Annual Inflation Rate 2.2% (2025)

Measures the change in consumer prices over time

With inflation normalising to low levels, Portugal's economy provides a stable and predictable financial climate for both consumers and businesses.

Non-EU citizens must have a valid passport and visa unless exempt. Short stays up to 90 days require a Schengen visa, while longer stays necessitate a national visa or residence permit.

Any EU citizen may enter Portugal by presenting a valid identity card or passport.

For those who work remotely from Portugal, it is possible to obtain a temporary stay visa and residence permit to carry out their professional activity for an entity based outside the national territory.

Portugal has embassies and consulates worldwide that offer visa services and assistance to its citizens abroad. A current list of these missions is available on the Ministry of Foreign Affairs website.