Why Is Portugal Attractive for International Investors?

Portugal has been consolidating its position as a relevant platform for international investors seeking to
develop projects in Europe.
For many years, the country was primarily associated with quality of life, tourism, safety and real estate.
Today, those factors remain important, but they no longer explain Portugal’s attractiveness on their own.
The country is increasingly analysed as a European base for international operations, qualified talent,
innovation, specialised services, industry, renewable energy, technology, healthcare, tourism and
projects with potential to scale.
The context, however, has become more selective. Foreign direct investment in Europe has been
affected by economic uncertainty, geopolitical tensions, higher capital costs, supply chain reconfiguration
and more demanding investment criteria. In this environment, Portugal remains attractive, but projects
need to be better structured, financially sound and aligned with the sectors and regions where the
country offers real competitive advantages.
According to the 2025 Portugal Attractiveness Survey, Portugal recorded 196 announced foreign direct
investment projects in 2024. Although this represented an 11% decrease compared with 2023, in line
with the broader European trend, the country remained in the European top 10, ranking 9th in number of
FDI projects. More importantly, new FDI projects increased by 21%, signalling that Portugal continues to
attract new international operations even in a more cautious investment environment.
For international investors, this reality requires a strategic reading: understanding where the opportunities
are, which sectors offer the strongest fit, which regions make sense and how the investment should be
structured to reduce risk and increase project viability.
This article explains the main factors that make Portugal attractive for international investors — and why
that attractiveness should be analysed with strategy, data and implementation capacity.

1. Portugal remains relevant in a more selective European investment context
   The first important reading is that Portugal continues to be on the radar of international investors, but in a
   more demanding environment.
   Recent FDI attractiveness data show that Portugal recorded 196 foreign direct investment projects in
   2024, maintaining the 9th position in the European ranking of FDI destinations. This position is relevant
   because it comes in a year of broad contraction across Europe, where many countries saw fewer
   announced investment projects.

At the same time, the 21% increase in new FDI projects in Portugal is a positive signal. It means that,
despite the overall decline in the number of projects, the country continues to attract companies looking
to establish new operations in the territory, rather than only expand existing operations.
This is an important message for international investors: Portugal remains attractive, but the investment
decision must be better prepared. Capital is more selective, financing partners are more demanding and
projects need to demonstrate economic rationale, execution capacity, differentiation and alignment with
real market opportunities in Portugal and Europe.

2. Portugal can act as a platform for European market entry
   One of Portugal’s main advantages is its European framework.
   By investing in Portugal, a company operates within the European Union, benefiting from access to the
   European single market, a recognised legal and institutional environment, European funding mechanisms
   and the possibility of developing commercial relationships with European clients, partners and
   institutions.
   This is particularly relevant for companies from outside the European Union seeking a structured entry
   point into the European market. Recent FDI data indicate that 34% of FDI projects in Portugal in 2024
   came from outside Europe, mainly from the United States and Brazil, compared with 27% in 2022. This
   reinforces Portugal’s role as a bridge between international markets and the European Union.
   Beyond the most visible markets in FDI statistics, Portugal has also been attracting interest from
   companies and investors from other international innovation ecosystems, including Israel, particularly in
   areas such as technology, healthcare, energy, defence, advanced industry and water technologies.
   Portugal may be especially relevant for companies looking to:
    establish a presence in the European Union;
    serve European clients;
    create a commercial, industrial or technology base;
    develop partnerships with European companies;
    access funding programmes and incentives;
    strengthen credibility with clients, banks and European institutions;
    use Portugal as a platform for international expansion.
   The question is not simply whether to invest in Portugal. The real question is how to use Portugal as a
   strategic platform to grow in Europe.
3. Investors value talent, competitive costs and access to markets
   Portugal’s attractiveness is no longer explained only by emotional or reputational factors such as climate,
   quality of life or safety. These factors remain relevant, but investors increasingly assess Portugal based
   on concrete business criteria.
   The main reasons identified by investors for establishing or expanding operations in Portugal were
   access to a skilled workforce, mentioned by 45% of investors, cost competitiveness, mentioned by 39%,
   and access to new markets and customers, mentioned by 35%.
   These three factors are central to the investment decision. Portugal can offer an interesting combination
   of talent, potentially competitive operating costs and integration into the European market. This
   combination is especially relevant for companies seeking to establish technology operations, service
   centres, industrial units, engineering teams, commercial structures or platforms supporting international
   markets.
   However, this advantage must be analysed case by case. Costs, availability of talent, energy, real estate,
   logistics and incentives vary significantly by sector and region. For this reason, the attractiveness

analysis should be carried out at the level of the specific project, not only based on a general perception
of the country.

4. Portugal combines stability, safety and quality of life
   Stability remains a relevant factor for international investors, especially in a global context marked by
   geopolitical tensions, supply chain reconfiguration and greater macroeconomic uncertainty.
   Portugal is perceived as a safe, socially stable country, open to international talent and with a high quality
   of life. Investor attractiveness data highlight the quality of infrastructure, workforce and quality of life as
   advantages of Portugal compared with other geographies.
   These factors have a direct impact on investment. Quality of life facilitates the relocation of teams, the
   attraction of foreign talent, the retention of qualified professionals and the establishment of international
   operations with a significant human component.
   For projects linked to technology, healthcare, specialised services, research, education, competence
   centres, premium tourism or international operations, this balance between quality of life and operational
   capacity can be an important asset.
5. Portugal offers opportunities in strategic sectors
   Portugal’s attractiveness varies by sector. Not every project has the same fit, and not every opportunity
   makes sense in the same way.
   FDI data for 2024 show that software and IT services continued to lead FDI attractiveness in Portugal,
   representing 29.1% of projects. This placed Portugal 4th in Europe by number of FDI projects in this
   area. Business services and professional services represented 16.3% of projects, reinforcing Portugal’s
   role as a hub for higher value-added services.
   At the same time, the data point to signs of sectoral diversification, including an increase in projects
   linked to manufacturing activities and greater attention to themes such as reindustrialisation, green
   technologies, artificial intelligence, sustainability, defence, security and innovation.
   For international investors, this means that Portugal should not be seen only as a tourism or real estate
   destination. The country can be relevant for projects in several strategic areas, including:
    technology, software and digital services;
    business services and professional services;
    industry and manufacturing;
    reindustrialisation and European value chains;
    tourism and hospitality;
    renewable energy and energy efficiency;
    sustainability and green technologies;
    healthcare and medical devices;
    agro-industry;
    blue economy;
    logistics;
    defence, security and dual-use technologies.
   The opportunity exists, but it must be assessed against location, licensing, financing, incentives, talent
   availability and execution capacity.
6. Tourism and renewable energy continue to reinforce Portugal’s attractiveness
   Tourism remains one of the most relevant sectors of the Portuguese economy and an area of strong
   interest for international investors. In 2025, according to Turismo de Portugal, the sector maintained a

positive trajectory, with 32.5 million guests, of which 19.7 million were foreign guests, and growth in
overnight stays, guests and tourism revenue.
This performance reinforces the attractiveness of projects linked to hotels, hospitality, resorts, nature
tourism, sustainable tourism, premium experiences, redevelopment of tourism assets and more
sophisticated operating models.
At the same time, Portugal has been consolidating its position in renewable energy. According to
APREN, in 2025, 75.6% of electricity generated in mainland Portugal came from renewable sources. This
reinforces the country’s relevance for projects linked to the energy transition, decarbonisation, energy
efficiency, storage, hydrogen, solar energy, wind, biomass and lower-carbon industrial solutions.
These two areas illustrate the breadth of the Portuguese opportunity: on the one hand, traditional sectors
with consolidated international demand; on the other, sectors linked to the energy transition, sustainability
and the future competitiveness of the European economy.

7. Portugal benefits from European funds and investment support instruments
   Another relevant factor for international investors is the existence of public funding programmes and
   investment incentives.
   Portugal 2030 is the main European funding framework available in Portugal, mobilising around 23 billion
   euros and implemented through 12 thematic and regional programmes. These programmes allocate
   support by area of activity and region, depending on open calls, applicable rules and the nature of the
   project.
   For international investors, this can represent a relevant opportunity, but it should not be interpreted as
   automatic financing. Incentives depend on the project structure, the promoting entity, location, sector,
   company size, eligible expenditure, innovation, sustainability, job creation, the promoter’s financial
   capacity and the merit criteria defined in each call.
   This means that incentive analysis should be carried out at an early stage. Often, the way the project is
   structured can influence its eligibility and competitiveness. Location, economic activity codes, eligible
   investment, degree of innovation, technological component, sustainability and economic impact can
   significantly alter the project’s framework.
   European funds are therefore a potential advantage for well-structured projects. But they do not replace
   equity, bank financing, investors or a solid financial strategy.
8. Location within Portugal is a strategic decision
   Portugal should not be analysed as a homogeneous territory.
   The attractiveness of Lisbon is different from that of the North, Centre, Alentejo, Algarve, Madeira or the
   Azores. Each region has its own characteristics, strong sectors, talent availability, infrastructure, costs,
   urban planning rules, strategic priorities and potential support levels.
   The 2025 investor survey shows that the country’s attractiveness is becoming more geographically
   diversified. Greater Lisbon appears as the most attractive region for foreign investment in 2025, with 28%
   of investor responses. Central Portugal consolidates the second position, with 19%, Northern Portugal
   appears in third place, with 15%, and Alentejo rises to fourth position, with 12%.
   This evolution is relevant. It shows that investors are looking at Portugal beyond the most traditional
   centres, assessing regions with potential in industry, energy, agro-industry, tourism, logistics, innovation,
   blue economy and larger-scale territorial projects.
   For international investors, the location decision should combine several criteria: market, talent, costs,
   licensing, infrastructure, incentives, regional strategy, access to suppliers, logistics and execution
   potential.

A strong investment decision in Portugal always begins with a strong location decision.

9. Portugal has potential for nearshoring, reindustrialisation and European
   operations
   In a context where many companies are seeking to reduce dependencies, diversify supply chains and
   bring operations closer to final markets, Portugal can be relevant as a platform for nearshoring and
   European market entry.
   Reindustrialisation is one of the areas where Portugal can reinforce its future attractiveness. The 2025
   investor survey indicates that 45% of investors consider Portugal attractive as a destination for
   reindustrialisation-related investment.
   This can apply to companies seeking to establish production, assembly, integration, engineering centres,
   technology services, support operations, commercial structures or industrial partnerships within the
   European Union.
   Portugal may not be the ideal solution for every project. But it can be particularly interesting for
   companies seeking a European presence with a smaller initial scale, controlled costs, access to talent,
   progressive growth potential and possible alignment with funding programmes or incentives.
10. The challenge: transforming attractiveness into executable projects
    Portugal is attractive, but investing in the country requires preparation.
    Macroeconomic attractiveness, FDI data, quality of life, European funds and sector potential are only the
    starting point. To transform an investment intention into a real project, it is necessary to analyse the
    opportunity in depth and structure the operation correctly.
    International investors should consider from the outset:
     corporate structure;
     Portuguese economic activity codes;
     licensing;
     tax framework;
     location;
     financing;
     incentives;
     business plan;
     financial model;
     local partners;
     execution risks;
     implementation calendar.
    A project may be attractive, but lose viability if it is poorly structured. Conversely, a project can become
    stronger when it is properly framed, located, financed and presented.
11. How Lisboa Investments can support international investors
    Lisboa Investments supports international investors in analysing, structuring and developing investment
    projects in Portugal.
    Our work can include:
     initial opportunity analysis;
     assessment of the project’s fit in Portugal;
     identification of the most appropriate location;

 analysis of incentives and funding programmes;
 investment structuring;
 preparation of the business plan;
 development of the financial model;
 support with the financing strategy;
 identification of local partners;
 regulatory framework assessment;
 preparation for banks, investors or public entities;
 strategic implementation support.
The objective is to help investors transform interest in Portugal into a structured, financially sound and
executable decision.
Conclusion: Portugal is a platform, not only a destination
Portugal is attractive for international investors because it combines access to the European market,
stability, talent, quality of life, infrastructure, sector opportunities, European funds and a strategic position
for companies seeking to grow in Europe.
But the real opportunity is not simply to invest in Portugal.
It lies in using Portugal as a platform to structure competitive, financeable projects prepared to operate in
a European and international context.
Recent FDI attractiveness data show that Portugal remains relevant on the European foreign direct
investment map, even in a more selective environment. The increase in new projects, the growing
presence of investors from outside Europe, the strength of technology and service sectors, regional
diversification and the potential in sustainability, reindustrialisation and innovation all reinforce this
reading.
For international investors, the priority should be to transform attractiveness into execution: choose the
right location, assess incentives, understand the regulatory framework, structure the company, prepare
the financing and design a realistic implementation plan.
Portugal can be a strong opportunity — provided the investment is approached with strategy, rigour and
execution capacity.
FAQ
Why is Portugal attractive for international investors?
Portugal is attractive because it combines access to the European market, stability, safety, quality of life,
talent, infrastructure, sector opportunities and potential access to European funds and public incentives.
Does Portugal continue to attract foreign investment?
Yes. Recent FDI attractiveness data show that Portugal recorded 196 announced foreign direct
investment projects in 2024 and remained in the European top 10, ranking 9th by number of FDI projects.
Is Portugal attractive only for tourism and real estate?
No. Although tourism and real estate are relevant sectors, Portugal also offers opportunities in
technology, software, business services, industry, renewable energy, healthcare, medical devices, agro-
industry, blue economy, logistics, sustainability and innovation.
Is Portugal a good platform for companies outside the European Union?

Yes. Portugal can be an interesting platform for companies seeking to establish a presence in the
European Union, serve European clients, access European funding or create a competitive operational
base.
Are there incentives to invest in Portugal?
Yes. Portugal has investment support instruments, including Portugal 2030, regional programmes,
financing lines and sector-specific instruments. However, eligibility depends on the project, sector,
location, promoting entity and applicable call.
Which sectors have the greatest potential in Portugal?
Relevant sectors include technology, software, business services, industry, renewable energy, energy
efficiency, tourism, healthcare, medical devices, agro-industry, blue economy, logistics, specialised
services and innovation-driven projects.
Is location within Portugal important?
Yes. Location can influence costs, licensing, access to talent, logistics, regional strategy and eligibility for
incentives. The choice of region should be made strategically.
How can Lisboa Investments support international investors?
Lisboa Investments supports international investors in opportunity analysis, investment structuring,
business planning, financial modelling, incentive analysis, location selection, financing strategy and
preparation for implementation in Portugal.
Key Takeaway
Portugal is attractive for international investors because it combines European market access, stability,
talent, quality of life, sector opportunities, public funding instruments and strategic positioning.
However, the real opportunity is not simply to invest in Portugal, but to structure the right project in the
right location, with the right financing strategy and execution plan.
Planning to Invest in Portugal?
Lisboa Investments supports international investors and companies in structuring, financing and
developing investment projects in Portugal.
Book a Strategic Consultation