Economic Overview & Business Opportunities
As one of the oldest countries in Europe, Portugal is a southern European country that occupies the western part of the Iberian Peninsula, bordering Spain. Portugal population is equivalent to 0.14% of the total world population. Home to approximately 10.4 million people, Portugal population is equivalent to 0.14% of the total world population.
Portugal’s economy expands rapidly since its accession to the EU in 1986 and until the late 90s. The country qualified for the European Monetary Union (EMU) in 1998 and began circulating the euro on 1 January 2002 along with 11 other EU member economies. The banking system in Portugal is stronger, with increased capital ratios and improved liquidity positions. The Government of Portugal sees foreign investment as an important engine of economic growth. As with all EU countries, Portugal’s borders and ports are completely open to the free flow of trade with other EU member countries. Furthermore, the politically stable environment with a democratically elected parliamentary government in Portugal has created a good welcoming environment for foreign business and investment.
Ranked 38th in the WEF’s Global Competitiveness Report for 2015-2016, Portugal is home to a number of top global market players, such as Portucel Soporcel, a major world player in the international paper market; Sonae Indústria, the largest producer of wood-based panels in the world. In Portugal, the great majority of the international trade is done within the European Union (EU), whose countries received 72.8% of the Portuguese exports and were the origin of 76.5% of the Portuguese imports in 2015. Other significant trade partners of Portugal are the NAFTA (6.3% of the exports and 2% of the imports), the PALOP (5.7% of the exports and 2.5% of the imports), the Maghreb (3.7% of the exports and 1.3% of the imports) and the Mercosul (1.4% of the exports and 2.5% of the imports).
Portugal ranks 25th (out of 190) in the World Bank’s 2017 Doing Business ranking where this serves as a sign of improvement in Portugal’s business environment. In Portugal, FDI is considered a priority by the government. The country has recently launched the development of renewable energies, specifically solar energy and wave power. Also, Portugal offers a diversified economy and benefits from its EU member status and Lisbon has become a key destination for FDI in real estate (The European Union is the main supplier of FDI in Portugal, with Spain and the Netherlands as the two biggest contributors). All this depict that the economy of Portugal is growing and lots of business opportunities are to be discovered.
- Portugal Company Setup
- Residents and non-residents personal income tax returns
- Tax advisory and compliance services
- Tax / fiscal representation for non-residents
- Payroll processing and returns
- Statutory accounting services
- Non Habitual Resident applications
- Inward-investment in Portugal – Golden Residence regime
- Company valuations
- Contractual audit and due diligence assignments
Duncan P MacGregor