Business in Portugal

Entering Portugal requires a thoughtful approach that takes into account the country’s business culture, legal framework, and economic dynamics. Here are specific considerations to help you succeed in the Portuguese market:

  1. Cultural Understanding:
    • Building Relationships: Portuguese business culture values personal relationships. Invest time in building trust and establishing connections.
    • Language: While English is widely spoken in business settings, learning some Portuguese phrases can enhance communication and show cultural respect. If your marketing materials are in English, consider translating them into Portuguese to reach a broader audience.
  2. Legal and Regulatory Compliance:
    • Legal Structure: Choose an appropriate legal structure for your business, such as a Sociedade Anónima (SA) or Sociedade por Quotas (LDA).
    • Compliance: Be aware of and adhere to Portuguese business laws, regulations, and compliance standards.
  3. Digital Transformation:
    • Online Marketing: Establish a strong online presence. Leverage digital marketing and e-commerce to reach a wider audience.
    • Technology Adoption: Stay informed about technology trends and consider how digital transformation can enhance your business operations.
  4. Workforce Dynamics:
    • Skilled Workforce: Portugal has a skilled workforce. Consider local talent for your hiring needs.
    • Labor Laws: Understand Portuguese labor laws and employment regulations.
  5. Networking and Relationship Building:
    • Business Events: Attend industry-specific events, trade shows, and networking functions to build relationships.
    • Portuguese Business Associations: Engage with Portuguese business associations and chambers of commerce.
  6. Consumer Preferences:
    • Market Research: Conduct thorough market research to understand local consumer preferences and tailor your offerings accordingly.
  7. Environmental and Social Responsibility:
    • Sustainability: Emphasize corporate social responsibility (CSR) initiatives. Portugal values businesses that contribute to environmental and social sustainability.
  8. Quality and Innovation:
    • Quality Standards: Emphasize high-quality standards in your products or services.
    • Innovation: Showcase innovation to differentiate your offerings in the market.
  9. Continuous Learning:
    • Stay Informed: Keep abreast of industry trends, economic developments, and changes in consumer behavior.

By considering these factors and adapting your strategies to the unique characteristics of the Portuguese market, you can position your business for success. Building strong local relationships, staying informed, and aligning with the local business environment are essential elements of a successful business venture in Portugal.

​Reach out to us, and we will:

  • Undertake market research on the business climate, customer behavior, market trends, and other factors that are important for the success of your business in Portugal
  • Create a business plan for your establishment in Portugal
  • Develop a go-to-market strategy for Portugal

General information

Capital: Lisbon

Population: 10,330,000

Official language: Portuguese

Main religion: Catholicism

Currency: Euro

Time zone: UTC+1

Economy of Portugal

GDP per capita: $24,567

Economic growth: 6.7%

Unemployment: 6.65%

Inflation: 8.1%

FDI Inflow: $7.36 billion

Business in Portugal

Popular type of legal entity: Limited Liability Company (LLC)

Minimum number of shareholders: 1

Terms of company registration: 1 week

Minimum share capital: €5,000

Restrictions for foreigners to start a business: No

A local director required: No, but at least one director must be a resident of the European Economic Area (EEA)

Corporate tax: 21%, but reduced rates may apply for certain types of income or companies

VAT: 23%, but reduced rates of 13% and 6% apply to certain goods and services

Benefits and challenges

Benefits: strategic location, stable political climate, membership in the European union, competitive tax incentives, and growing startup ecosystem

Challenges: bureaucracy, high levels of regulation, limited workforce with specialized skills, language barriers for non-portuguese speakers, and limited market size for some industries

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