Portugal has approximately 17,000 foreign-owned companies, according to Informa D&B data reported by ECO. Informa D&B is a business information and data company specialising in the Portuguese corporate market. Together, these companies generate 31% of business turnover, 22% of employment and 46% of Portuguese exports. Of these companies, 9,721 were created during the last decade.
For an international company considering Portugal, these figures raise a useful question: what do they tell us about doing business in the Portuguese market?
Portugal Is More Than a Small Markett
Portugal is a relatively small market, but foreign-owned businesses have a particularly strong export profile. Around 28% of foreign-owned companies in Portugal are exporters, compared with 8% of Portuguese-owned companies.
This matters for companies looking at Portugal not only as a place to sell, but also as a potential European operational base with international activity. Portugal’s position within the EU and the European single market is part of that equation.
Foreign Companies Have a Big Economic Impact
The gap between the number of foreign-owned businesses and their contribution to the economy is notable.
According to the study, 40% of foreign-owned companies have high or medium-high productivity levels, compared with 31% of Portuguese-owned companies. Personnel costs also indicate a different business profile. Foreign-owned companies record average personnel costs of around €33,000 per employee, approximately €10,000 more than Portuguese-owned companies.
US-owned businesses stand out even further, with average personnel costs of around €50,000 per employee. For US companies considering Portugal, this is an interesting signal of the type and value of operations that American-owned businesses are already supporting in the country.
What Does This Mean for Companies Considering Portugal?
The figures do not mean that establishing a business in Portugal automatically leads to higher productivity or international growth. Foreign-owned businesses are often larger, belong to international groups or operate in more export-oriented sectors. But they do show something important: international companies are already a significant part of Portugal’s business and export ecosystem.
For companies assessing Portugal, the decision therefore goes beyond company incorporation. The right structure for tax, accounting, VAT, payroll, and ongoing compliance can directly impact how efficiently the Portuguese operation is established and managed.
At Oporto Accounting, we help international entrepreneurs and companies understand these requirements and establish the accounting and tax foundations they need to operate in Portugal.
