How to Structure an Investment Project in Portugal: From Concept to Financing

Portugal continues to position itself as an attractive platform for international investors seeking to develop
projects in Europe, whether in tourism, real estate, industry, defence, renewable energy, technology,
healthcare or other strategic sectors.
However, transforming an opportunity into a viable investment project requires more than identifying a
good idea, an attractive location or a potential source of financing.
A successful investment project requires structure: a clear concept, a realistic implementation strategy,
alignment with national and European regulations, an appropriate corporate structure and a coherent
financing strategy.
Before moving forward with company incorporation, asset acquisition, licensing, bank financing or
applications for public incentives, it is essential to understand how the project should be structured in
order to meet legal, operational and financial requirements.
This includes, among other aspects, defining the economic activity, selecting the appropriate Portuguese
economic activity codes (CAE), analysing eligibility for incentives, defining the capital structure, preparing
the financial model and designing the implementation plan.
At Lisboa Investments, we support investors and entrepreneurs in structuring investment projects in
Portugal, from the initial concept stage to the business plan, financial model, regulatory framework,
financing strategy and preparation for implementation.
This article explains the main stages involved in structuring an investment project in Portugal.
What does it mean to structure an investment project?
Structuring an investment project means transforming an initial idea into a clear, credible and financeable
plan.

In practice, this process involves organising all the essential elements of the project: concept,
differentiation from the existing market offer, location, business model, corporate structure, licensing,
risks, implementation plan and financing strategy.
The financing structure may combine several sources, including equity, public incentives, bank financing,
private investors, investment funds or strategic partners.
A well-structured project should answer fundamental questions:
 What will be developed?
 Is the project innovative or differentiated from the existing market offer?
 Where will it be implemented?
 What is the business model?
 How much investment is required?
 What revenues and costs are expected?
 What licences or authorisations are required?
 What sources of financing can be mobilised?
 Is the project eligible for public incentives?
 What could be the most appropriate corporate structure?
 What is the execution plan and within what timeframe can it be implemented?
For international investors, this stage is particularly important because Portugal has specific rules
regarding licensing, urban planning, taxation, incentives, financing and sector-specific requirements.
Investment structuring is therefore the bridge between an opportunity and a project that is ready to move
forward.

1. Clearly define the investment concept
   The first step is to clarify the concept.
   Many international entrepreneurs begin with a general idea: developing a hotel, installing an industrial
   unit, creating a technology operation, producing renewable energy or entering the Portuguese market
   through a new company.
   However, for the project to be financed and implemented, that idea must be transformed into a concrete
   and differentiated concept aligned with a real market opportunity.
   At this stage, it is important to answer questions such as:
    What problem or opportunity does the project aim to address?
    Who are the clients or end users?
    What will be the revenue model?
    Will the project be operated directly by the entrepreneur or by third parties?
    Is there a need for a local partner?
    Is the objective to create, acquire, expand or relocate an operation?
    What is the expected investment scale?
   A clear concept makes it possible to assess the project’s feasibility, identify risks and communicate the
   opportunity professionally to banks, investors, public entities, municipalities and strategic partners.
   Without this initial clarity, the project may move forward based on weak assumptions and generate
   unnecessary costs at a later stage.
2. Assess whether Portugal is the right platform for the project

Portugal may be an attractive location for several reasons: access to the European market, stability,
quality of life, talent, competitive costs, tourism potential, infrastructure, European funds or geographic
positioning.
However, not every project benefits from Portugal in the same way.
A tourism project may depend heavily on location, demand, licensing and municipal strategy. An
industrial project may depend on available land, energy, labour, logistics, access to suppliers and
alignment with incentive systems. A technology or healthcare project may require partnerships with
universities, research centres, hospitals, incubators or specialised investors.
The strategic analysis should consider:
 market size and maturity;
 national and international demand;
 access to clients and partners;
 availability of talent;
 operating costs;
 infrastructure;
 legal and regulatory framework;
 export potential;
 alignment with national or regional priorities;
 access to financing and incentives.
The question should not only be: “Is Portugal a good country to invest in?”
The right question is: “Is Portugal the right platform for this specific project?”

3. Choose the right location
   Location is a decisive factor in an investment project.
   In Portugal, location influences not only commercial attractiveness, but also licensing, operating costs,
   labour availability, access to infrastructure and eligibility for public incentives.
   In some programmes, certain locations may also benefit from more favourable conditions or additional
   support rates, depending on the applicable call and regional framework.
   Location analysis should consider:
    market statistics and dynamics;
    urban planning framework;
    availability of land or property;
    municipal restrictions;
    road, rail, port or airport access;
    proximity to suppliers, clients or partners;
    availability of skilled workers;
    installation costs;
    environmental framework;
    eligibility and potential additional rates for support;
    compatibility with the territory’s strategy.
   In tourism projects, for example, location may determine whether new accommodation units are allowed,
   whether municipal limitations exist or whether the project is aligned with regional priorities.
   In industrial projects, location may influence access to industrial zones, energy costs, logistics and
   incentives for productive investment.

A good location is not merely an attractive location. It is a location where the project can be approved,
financed, implemented and scaled.

4. Analyse licensing and regulatory requirements at an early stage
   One of the most common mistakes in investment projects is leaving the licensing analysis too late.
   In Portugal, legal and administrative requirements vary depending on the sector, location, municipality
   and operating model.
   Real estate, tourism, industrial, energy, food, technology, healthcare or regulated-sector projects may
   require different types of authorisations, opinions or licences.
   At this stage, it is essential to understand:
    whether the activity is permitted in the selected location;
    which entities are involved in the process;
    what licences are required;
    whether there are urban planning or environmental restrictions;
    whether architectural or engineering projects are required;
    whether specific sector authorisations are needed;
    the expected approval timeline;
    what risks may delay implementation.
   This analysis helps avoid wrong decisions, such as acquiring a property that does not allow the intended
   activity or preparing a financial plan without considering realistic licensing timelines.
   For international investors, licensing should not be seen as a mere administrative formality. It should be
   treated as a central component of investment risk management.
5. Define the corporate structure and appropriate activity codes
   The corporate structure is an essential component in preparing an investment project in Portugal,
   especially when international investors, local partners, bank financing or applications for public incentives
   are involved.
   At this stage, it is important to assess:
    what type of company should be incorporated;
    who the shareholders or partners will be;
    how the share capital will be distributed;
    whether external investors or strategic partners will be involved;
    which Portuguese economic activity codes should be registered;
    whether the structure is compatible with financing requirements;
    whether the planned activity is aligned with the necessary licences.
   The choice of corporate structure and economic activity codes should not be treated as an administrative
   formality. On the contrary, it may influence the tax framework, access to incentives, promoter eligibility
   and the ability to execute the project efficiently.
   This analysis should be carried out at an early stage, as later changes to the structure may create delays,
   additional costs or difficulties in preparing applications, financing or contracts with partners.
6. Build a credible business plan
   The business plan is the strategic foundation of the project.
   It should not be merely a descriptive document. It must demonstrate that the project has economic logic,
   market demand, differentiation, execution capacity and return potential.

A solid business plan should include:
 project description;
 market analysis;
 target audience;
 competitive positioning;
 business model;
 commercial strategy;
 operational plan;
 team and partners;
 required investment;
 cost structure;
 financial projections;
 risks and mitigation measures;
 implementation plan.
The plan should be adapted to the sector.
In a hotel project, for example, it will be necessary to analyse occupancy rate, average daily rate,
RevPAR, seasonality, operating costs, sales channels and positioning. In an industrial project, it will be
essential to analyse production capacity, equipment, suppliers, production costs, certifications, margins
and export potential.
A good business plan does not only serve to present the project. It is used to test whether the project
makes sense.
It is also an essential tool for banks, investors, strategic partners and public incentive applications.
When the objective includes access to public incentives, the business plan must be aligned with the
criteria of the applicable call, as well as with the relevant national and regional strategy. Otherwise, the
application may lose competitiveness or may not meet the required criteria.

7. Develop a robust financial model
   The financial model translates the project into numbers.
   This is where the investor assesses whether the investment is financially sustainable, how much capital
   is required, when the project reaches break-even and what return it may generate.
   A financial model should include:
    initial investment;
    CAPEX;
    operating costs;
    expected revenues;
    working capital requirements;
    financing structure;
    forecast income statement;
    cash flow;
    forecast balance sheet;
    break-even analysis;
    profitability indicators;
    sensitivity scenarios.
   More than creating optimistic forecasts, the objective is to understand the financial logic of the project.
   The investor should be able to answer questions such as:

 What is the total investment required?
 How much equity will be required?
 What incentive rate may be applicable?
 What other financing solutions can be considered?
 What could be the overall financing mix?
 What impact would licensing delays have?
 What happens if revenues are lower than expected?
 What is the investment payback period?
 What return can be presented to investors?
 Which risks have the greatest impact on profitability?
A well-built financial model increases the project’s credibility and supports decisions based on data,
rather than intuition or preliminary estimates.

8. Assess public incentives and financing programmes
   Portugal has several instruments to support investment, including programmes financed by European
   funds, regional programmes, sector-specific instruments and potentially advantageous credit lines for
   certain areas of activity.
   Portugal 2030 is one of the main European funding frameworks in Portugal, organised through thematic
   and regional programmes. However, the support available always depends on open calls, location,
   company size, sector, nature of the investment and the criteria defined in each call.
   Public incentives should therefore not be treated as guaranteed financing. On the contrary, they are
   demanding and competitive processes subject to specific technical criteria.
   The analysis should consider:
    whether the promoter is eligible;
    whether the sector is supported;
    whether the location is favourable;
    whether the planned investments are eligible;
    whether the project contributes to innovation, sustainability or digitalisation;
    whether it creates qualified employment;
    whether it is aligned with national and regional strategies;
    whether the project calendar is compatible with available calls;
    whether the promoter can wait for the application analysis and decision process.
   In most cases, the project may benefit from adjustments to improve its eligibility and competitiveness.
   This may involve the location, degree of innovation, type of investment, technological component,
   sustainability or creation of qualified employment.
   The question should not only be: “What support is available?”
   The more important question is: “How can I structure an innovative, credible and financeable project to
   access public incentives and other financing sources?”
9. Define the financing structure
   After estimating the required investment and analysing possible incentives, the financing structure must
   be defined.
   A project can be financed through several sources:
    equity;
    private investors;

 bank financing;
 public incentives;
 investment funds;
 hybrid instruments;
 strategic partners;
 asset sale or leasing.
The ideal structure depends on the amount of capital required, the differentiation of the product or
service, the sector of activity, the risk profile, expected return, the promoter’s financial capacity, the
credibility of the team and the project’s level of maturity.
In many cases, the most realistic solution involves a combination of sources: equity, bank debt and public
incentives.
Each financing source follows a different logic.
Banks look for repayment capacity, guarantees and cash-flow stability. Investors look for return, value
creation and exit potential. Public entities look for economic impact in Portugal, eligibility, job creation,
strategic coherence and compliance with the objectives presented in the project.
A well-structured project must be able to respond to the expectations of all these stakeholders.

10. Prepare the project for banks, investors or public entities
    Once the concept, location, business plan, financial model and financing structure have been defined, the
    project must be prepared for presentation.
    This may include:
     pitch deck;
     business plan;
     financial model;
     legal documentation;
     relevant contracts or agreements;
     required licences;
     implementation roadmap;
     feasibility study;
     documentation for public incentive applications.
    The presentation format should be adapted to the recipient. This point is essential because each
    stakeholder has different criteria, priorities and objectives.
    A bank does not analyse the project in the same way as a private investor. A public entity does not
    assess the same criteria as a strategic partner. A municipality may be more focused on local impact,
    while an investor may be more interested in investment return and risk mitigation.
    For this reason, the documentation must be clear, consistent and professional.
    A good project can lose credibility if it is poorly presented.
11. Create a realistic implementation plan
    Project structuring does not end with the business plan.
    Execution must also be prepared.
    The implementation plan should identify:
     main project phases;
     entities involved;

 responsibilities;
 deadlines;
 dependencies;
 critical decisions;
 risks of delay;
 licensing milestones;
 supplier contracting;
 operational milestones.
This plan is essential to ensure that the project moves forward in a coordinated manner.
In Portugal, many projects require coordination between investors, municipalities, architects, engineers,
banks, consultants, licensing authorities, public agencies and local partners.
Poorly coordinated implementation can lead to delays, additional costs and loss of confidence from
financiers or investors.
For this reason, an investment project should be structured not only to be approved or financed, but to be
effectively implemented.

12. Work with a strategic local partner
    For international entrepreneurs and investors, working with a local partner can significantly reduce
    market-entry risk.
    A local partner can support areas such as:
     interpretation of the Portuguese context;
     identification of opportunities;
     location analysis;
     coordination with public entities, including Municipal Councils;
     identification of potential project partners;
     contacts with banks, investors or strategic partners;
     implementation support.
    This support is particularly relevant when the international entrepreneur is not yet familiar with the
    Portuguese market, administrative processes, financing criteria or local business practices.
    At Lisboa Investments, we support national and international investors in structuring investment projects
    in Portugal, with a focus on higher value-added projects, particularly in tourism, real estate, industry,
    renewable energy, technology, healthcare and the entry of international companies into the Portuguese
    market.
    Our role is to help investors transform an opportunity into a clear, financeable and executable investment
    structure.
    Conclusion: a strong project begins before the investment
    Structuring an investment project in Portugal is not merely about preparing documentation.
    It is a strategic process that makes it possible to assess feasibility, reduce risks, improve access to
    financing and increase the probability of success.
    The strongest projects are not only good ideas. They are well-defined, financially sustainable, legally
    viable, properly located, aligned with financing instruments and prepared for implementation.
    For international entrepreneurs and investors, this preparation is even more important.

Before investing capital, acquiring assets, incorporating companies or submitting applications, it is
essential to structure the project correctly.
Portugal offers relevant opportunities, but those opportunities must be approached with strategy, local
knowledge and a clear execution vision.
FAQ
What is an investment project in Portugal?
An investment project in Portugal is a business initiative involving the deployment of capital to create,
acquire, expand or develop an economic activity in the country. It may be related to tourism, real estate,
industry, energy, technology, healthcare or other sectors.
Why is it important to structure a project before investing?
Because structuring makes it possible to assess whether the project is viable, how much investment will
be required, which licences are needed, what risks exist, what financing can be mobilised and whether
the project may access public incentives. In some cases, it also allows the project to be adapted to the
criteria required for licensing, financing or application purposes.
Can a foreign investor access incentives in Portugal?
Yes, a foreign investor can access incentives in Portugal, provided that the project meets the criteria of
the applicable programme. Eligibility depends on the sector, location, type of investment, nature of
expenditure, timing and rules of the call.
What should a business plan for an investment in Portugal include?
A business plan should include the project concept, market analysis, business model, commercial
strategy, operational plan, required investment, financial projections, risks and implementation plan.
What is a financial model?
A financial model is a tool that projects revenues, costs, investment, financing, cash flow and project
profitability. It allows the investor to assess financial sustainability and test different scenarios.
When should the analysis of public incentives be carried out?
The analysis of incentives should be carried out at an early stage. The way the project is structured may
influence its eligibility and competitiveness in an application.
Does location influence access to financing?
Yes. Location may influence eligibility for incentives, potential additional support rates, operating costs,
licensing, access to labour and the overall feasibility of the project. In certain calls, low-density territories
or specific regions may benefit from more favourable conditions, while other areas may have lower
support rates.
How can Lisboa Investments support an investment project?
Lisboa Investments supports investors and entrepreneurs in project structuring, preparation of business
plans, financial models, incentive analysis, regulatory framework assessment, financing strategy and
preparation for implementation in Portugal.
Key Takeaway

An investment project in Portugal should be structured through several stages: clear definition of the
concept, strategic analysis of the Portuguese market, location selection, licensing assessment, definition
of the corporate structure and Portuguese economic activity codes, preparation of the business plan,
development of the financial model, analysis of public incentives, definition of the financing structure and
creation of an implementation plan.
For international investors, support from a local partner is important to reduce regulatory, financial and
operational risks.
Planning to Develop an Investment Project in Portugal?
Lisboa Investments supports international investors and companies in structuring, financing and
developing investment projects in Portugal — from initial concept to financing strategy and
implementation.