Portugal continues to attract international investors and entrepreneurs interested in hotels, boutique hospitality concepts, eco-resorts, rural tourism, wellness retreats and other tourism projects.

But identifying an attractive property or destination is only the beginning.

Developing a successful tourism project requires several decisions to work together: an innovative concept, the location, market demand, licensing, the investment structure, financing and the implementation strategy.

For international investors who are not deeply familiar with the Portuguese market, understanding these elements from the outset can help avoid costly changes later.

These are ten questions worth asking before starting a tourism investment in Portugal.

1. Is Portugal a good market for tourism investment?

Portugal has built a very strong international position in the tourism sector and continues to attract investment in hospitality.

According to Turismo de Portugal, tourism revenues reached €29.1 billion in 2025, the highest level recorded to date, representing a 5% increase compared with 2024. Portugal recorded around 82 million overnight stays and 32.5 million guests during the same year. Turismo de Portugal also reports that Portugal is currently among the five European markets with the highest number of hotel projects under development.

However, a positive tourism outlook at national level does not automatically mean that every project will be profitable.

Investment decisions still need to be assessed at regional and local level.

An opportunity in Lisbon will have a very different demand profile, investment logic and operating environment from a rural tourism project in the Alentejo, Central Portugal or Northern Portugal.

The relevant question is therefore not simply:

“Is tourism growing in Portugal?”

But rather:

“Does this specific concept make sense in this specific location?”

2. What type of tourism concept should I develop?

One of the most common mistakes is starting with the property instead of starting with the concept.

The investor identifies a building, an estate or a plot of land and only afterwards asks what type of tourism project could be developed there.

In our view, and based on our experience, the process should begin with the concept, including the intended tourism classification.

This is important because, for example, in a certain municipality, if the investor intends to develop a tourism village, the project may require a plot of 15 hectares. In another municipality, the required area may be smaller.

The characteristics of the property should therefore be analysed together with:

• the tourism classification;
• the target customer;
• the destination;
• expected demand;
• competitive positioning;
• seasonality;
• accessibility;
• the experience to be created;
• the investment required;
• and the potential operating model.

Portugal already offers a very diverse range of accommodation.

For a new project to compete effectively, simply providing accommodation is unlikely to be enough in the medium term.

The strongest concepts often create a clear reason to travel.

That reason may be connected to wellness, nature, wine and gastronomy, culture, longevity, biohacking, sports or another differentiated experience.

The objective should not simply be to add activities to a hotel.

It should be to develop a coherent hospitality concept in which the property, the experience, the region, the customer and the destination reinforce one another.

3. How do I choose the right location for a tourism project in Portugal?

A beautiful location is not necessarily the right location.

Investors should analyse much more than the quality of the property itself.

Depending on the tourism concept, relevant factors may include:

• accessibility;
• proximity to airports and major cities;
• visibility;
• tourism demand in the surrounding area;
• seasonality;
• customer flows;
• local attractions;
• competition;
• availability of labour;
• supporting infrastructure such as restaurants and cultural venues;
• support from the local municipality;
• and the regional tourism strategy.

For a project that is strongly dependent on the destination, the surrounding ecosystem can be particularly important.

A remote location may be ideal for a premium nature retreat, but unsuitable for a concept that depends heavily on spontaneous customer traffic.

Likewise, a property in an established tourism destination may benefit from strong existing demand but face higher acquisition costs and greater competition.

Location should therefore be analysed in relation to the business model — not in isolation.

4. How do I know whether a tourism project is financially viable?

Before committing significant capital, investors should test the project through a feasibility analysis and a financial model.

This typically involves working with assumptions relating to:

• investment;
• room or unit capacity;
• occupancy rates;
• average rates;
• additional revenue streams;
• human resources;
• operating costs;
• seasonality;
• financing costs;
• cash flow;
• and return on investment.

The purpose of a feasibility study is not simply to produce an Excel file.

It is to test whether the commercial assumptions behind the investment make sense.

For example, if a business plan assumes high occupancy throughout the year in a highly seasonal region, the concept may require additional revenue streams or experiences capable of attracting customers outside the traditional peak season.

Financial modelling should therefore interact with the tourism concept.

When the numbers reveal a weakness, the solution is not always to change the forecast.

Sometimes the business model itself needs to change.

5. What licences and approvals will be required for a tourism project in Portugal?

Licensing is one of the areas international investors should analyse at an early stage.

The requirements depend heavily on the property, the location, the classification of the tourism development, the complementary services and the type of tourism operation.

The process may involve different entities and different levels of regulation, including municipal planning requirements and, depending on the project, matters related to tourism, environment, heritage, food and beverage operations, land-use planning or other approvals.

This is why licensing should be assessed before an investor assumes that a particular tourism concept can be implemented on a specific property.

A project may appear financially attractive but still face constraints affecting:

• construction;
• expansion;
• capacity;
• permitted use;
• access;
• infrastructure;
• environmental intervention;
• or the implementation timeline.

The correct approach is therefore to connect the investment concept with the planning and licensing reality as early as possible, but in our view, after the feasibility study.

The reason is simple: if we do not yet know the minimum number of rooms, the complementary services required, the expected operating costs and the projected return on investment, it is difficult to know what type of project should be pursued and whether the investment can be economically sustainable.

6. What grants and incentives are available for tourism projects in Portugal?

This is one of the most frequent questions among international investors and entrepreneurs.

Portugal offers different forms of supported financing for tourism investment.

These may include European incentive programmes, tourism-specific financing instruments, credit solutions, venture capital mechanisms, investment funds and tax benefits.

One relevant instrument is the Linha de Apoio à Qualificação da Oferta 2024, developed by Turismo de Portugal in partnership with the banking system. The programme has a total allocation of €300 million and provides medium- and long-term financing for tourism projects designed to improve the quality of the tourism offer and meet environmental and social sustainability requirements.

According to Turismo de Portugal, eligible projects may include the requalification, repositioning and expansion of tourism developments, establishments and activities, subject to the specific conditions of the programme.

Another instrument is the Programa Crescer com o Turismo, created in 2025 with a total allocation of €30 million. Its purpose is to support projects contributing to the sustainable development and competitiveness of territories through tourism. The programme remains available until 31 December 2026 or until its allocation is exhausted, subject to its specific eligibility criteria.

In addition, Portugal 2030 may provide opportunities through programmes such as SICE – Productive Innovation, depending on the specific call for applications, the location, the company, the sector and the nature of the investment.

The key point is that funding opportunities should always be assessed against the rules of the specific programme or call in force at the time of the investment.

However, there is an important distinction:

An available incentive is not necessarily the right incentive for a specific project.

Eligibility may depend on factors such as:

• location;
• type of company;
• company size;
• nature of the investment expenditure;
• project maturity;
• timing;
• sustainability criteria;
• economic impact;
• and the specific rules of each programme.

Financing programmes also change over time.

For this reason, investors should ideally assess incentives during the feasibility and investment structuring phase, and not only after the project has already been fully defined.

7. Can foreign investors access tourism financing and incentives in Portugal?

Yes.

Foreign capital does not prevent a project from accessing investment or financing instruments in Portugal.

However, the investment will need to be structured through an eligible Portuguese entity and comply with the rules of the relevant financial instrument or programme.

Eligibility should always be assessed on a case-by-case basis. The same principle also applies to Portuguese entrepreneurs.

This is particularly important because different instruments may have different requirements regarding company status, location, eligible expenditure, financial capacity and project implementation.

An international investor should therefore avoid structuring the corporate model and the investment without considering the potential financing requirements.

The investment structure and the financing strategy should be developed together.

8. How should I finance a tourism project in Portugal?

The first question should not necessarily be:

“How much non-repayable grant funding can I obtain?”

A better question is:

“What is the right capital structure for this project?”

Tourism investments are often financed through a combination of sources, such as:

• promoter equity;
• public incentives;
• bank financing;
• subsidised or supported financing instruments;
• private investors;
• shareholder loans;
• venture capital.

Portugal currently offers different categories of financing instruments for tourism-related projects, including bank financing supported through Turismo de Portugal programmes, public incentives, European funds, venture capital mechanisms and other investment solutions.

For example, the Linha de Apoio à Qualificação da Oferta 2024 combines the involvement of Turismo de Portugal with participating banks and is intended to provide medium- and long-term financing for qualifying tourism investments.

The appropriate combination depends on the project.

A €2 million rural tourism project, for example, may require a very different structure from the acquisition and repositioning of an operating hotel.

Financing should therefore be built around the investment requirements, the risk profile, the project’s cash-flow generation capacity and the implementation timetable.

Incentives can strengthen the financing structure.

They should not replace the structure.

9. What role can Turismo de Portugal and other institutions play?

Turismo de Portugal is an important institution within Portugal’s tourism investment ecosystem.

Its role goes far beyond promoting Portugal as a tourism destination.

It provides information on financing instruments, investment support and programmes aimed at the tourism sector, and works with other institutions and financial partners involved in investment projects.

In March 2026, Turismo de Portugal highlighted the reinforcement of financing instruments aimed at supporting new tourism projects across different regions of the country, with a particular focus on geographical diversification and investment in territories with development potential.

Depending on the project, investors may also need to interact with:

• municipalities;
• regional tourism entities;
• CCDRs and other regional bodies;
• financial institutions;
• Portugal 2030 managing authorities;
• environmental or heritage authorities;
• and other national or local entities.

For an international investor, understanding which institution should be approached, at what stage and for what purpose can be just as important as identifying the institutions themselves.

10. Who can help me develop and finance a tourism project in Portugal?

In most cases, international investors will need more than one professional adviser.

Depending on the project, the team may include:

• architects;
• engineers;
• lawyers;
• accountants;
• tax advisers;
• hotel operators;
• financial partners;
• and investment or tourism advisers.

What is often missing is someone capable of coordinating the investment logic across these different areas.

This is particularly important in the early stages.

Before significant capital is committed, the investor should ideally be able to answer questions such as:

What are we building?

For whom?

Why this location?

Is the project viable?

Can it be licensed?

How much investment will be required?

What financing structure makes sense?

What incentives may be available?

Which institutions and partners need to be involved?

Only when these questions are clear does the project begin to move from an attractive idea to a structured investment opportunity.

From Opportunity to Investment Strategy

Portugal offers very attractive opportunities for international investors in tourism and hospitality.

But successful projects rarely begin with an incentive application, the incorporation of a company or even the acquisition of a property.

They begin with alignment.

The concept must make sense for the location.

The location must be appropriate for the customer.

The project must be financially viable.

The licensing strategy must support implementation.

And the financing structure must reflect the investment requirements.

At Lisboa Investments, we support international investors and promoters in structuring tourism and hospitality projects in Portugal — from concept, location and feasibility analysis to business planning, financing strategy, public incentives and investment implementation.

Because identifying an opportunity is only the first step.

The real challenge is turning that opportunity into a viable, differentiated and financeable project.

Sources and Further Information

For current information on tourism investment, financing programmes and public incentives in Portugal, investors should consult official sources, including:

Turismo de Portugal – Investment and Financing — Official information on tourism investment, financing programmes, incentives and sector performance.

Turismo de Portugal – Linha de Apoio à Qualificação da Oferta 2024 — Official information on the €300 million financing instrument developed with participating banks.

Turismo de Portugal – Programa Crescer com o Turismo — Official programme information, eligibility rules and current application periods.

Portugal 2030 — Official information on current and forthcoming European funding calls in Portugal.

COMPETE 2030 — Official information on business competitiveness programmes, including Productive Innovation calls.

Because programmes, eligibility conditions and application periods change, investors should always verify the rules in force at the time the investment is being structured.