[et_pb_section fb_built=”1″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”]

Recent data from the Informa D&B Barometer reveals encouraging signs for the Portuguese economy. Between January and September 2025, 40,465 new companies were created, marking a 2.4% increase compared to the same period last year. At the same time, company closures and insolvencies have decreased, suggesting a healthier and more confident business environment. According to the study, 7,910 companies closed and 1,502 entered insolvency proceedings by September, representing a 5.2% drop compared to 2024.

 

 

Strong growth across key sectors

Some industries are leading the way in business creation. Real estate grew by 22%, construction by 13%, business services by 4.8%, and agriculture by 20%. Meanwhile, sectors such as transport (-30%) and retail (-8.5%) recorded fewer company incorporations. Insolvencies have fallen particularly in manufacturing (-26%) and textiles/fashion (-37%), indicating stabilisation in traditional industries.

 

 

What this means for investors and entrepreneurs

These figures reflect a positive shift in Portugal’s business climate, especially for those looking to establish or expand their operations here. Three key takeaways stand out: greater business confidence, as more companies are being launched and fewer are closing; sectoral opportunities, with real estate, construction and business services continuing to attract strong investment; and reduced structural risk, with the drop in insolvencies pointing to a more stable environment for new ventures.

 

 

 A favourable moment to enter the Portuguese market

For foreign investors, this is a promising time to explore opportunities in Portugal. However, establishing a company in a new country still requires careful planning, from tax registration and payroll to ongoing compliance.

 

 

At Oporto Accounting, we provide tailored support for each stage of your business journey, helping international entrepreneurs and companies start and grow in Portugal with confidence.

Get in touch to learn how we can support your business setup and tax compliance needs.

[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]

[et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row admin_label=”row” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” header_text_align=”justify” text_orientation=”justified” global_colors_info=”{}”]

From “junk” to “A”: Portugal’s credit transformation and what it means for investors

 

Portugal has reached a turning point in its financial credibility. Once considered a “junk” borrower during the sovereign debt crisis, the country is now rated “A” by all the main international credit rating agencies. Standard & Poor’s recently went a step further, upgrading Portugal to A+, placing it above Spain and Italy for the first time in decades.

This remarkable recovery is more than a symbolic victory. It has direct consequences for investors, businesses and the country’s economic prospects.

 

The road to recovery

The credit upgrade is the result of years of consistent fiscal effort:

• • Debt reduction – Public debt has been steadily brought down, with Portugal using budget surpluses to cut liabilities rather than expand spending.
  • Balanced budgets – Consecutive surpluses sent a clear message of discipline to international markets.
  • Economic resilience – Despite global uncertainty, Portugal has managed to keep growth stable, attract foreign investment, and diversify its economy.

This track record reassures investors that Portugal is not only recovering but consolidating its position as a credible and responsible member of the eurozone.

 

Why the upgrade matters

A stronger credit rating is more than just recognition from financial agencies. It produces tangible effects for both the public and private sectors:

1. Cheaper financing
   • • A higher rating reduces the risk premium on Portuguese debt.
     • The State can borrow at lower interest rates, which often translates into improved financing conditions for local companies as well.
2. Increased investor confidence
   • • Global funds and institutional investors that once excluded Portugal due to its “junk” status can now consider it within their investment mandates.
     • This widens the pool of capital available for businesses and infrastructure projects.
3. Competitive advantage in Southern Europe
   • • Portugal now enjoys a better rating than Spain and Italy, improving its relative attractiveness within the EU.
     • This strengthens Portugal’s case as a stable entry point for international companies expanding in Europe.

 

Opportunities for businesses and foreign investors

The upgrade creates an environment of greater predictability and reduced risk, which is particularly valuable for international entrepreneurs and multinational companies considering operations in Portugal.

• • Stable framework for long-term planning – Companies can make investment decisions with more confidence in the country’s fiscal outlook.
  • Access to EU incentives – Combined with the Recovery and Resilience Plan, the improved rating supports ongoing investment in digitalisation, energy transition and infrastructure.
  • Reinforced reputation – A country with a solid credit standing is more attractive to employees, partners and clients who seek security and trust.

 

What comes next

Maintaining this momentum will require continued discipline and forward-looking policies. Challenges remain, such as ensuring sustainable growth, managing demographic pressures, and promoting innovation.

But the trajectory is clear: Portugal has moved from a position of fragility to one of strength. For foreign investors, the message is simple, Portugal is not just a safe bet, it is becoming a strategic hub for long-term growth in Europe.

 

[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]

[et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row admin_label=”row” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” header_text_align=”justify” text_orientation=”justified” global_colors_info=”{}”]

Portugal is now the 7th most attractive destination in Europe for foreign direct investment (FDI), according to the EY Attractiveness Survey 2024. A milestone that marks the country’s best-ever position in the rankings.

This isn’t just a statistical achievement. It’s a strong signal that Portugal is becoming a serious business destination for international companies, startups, and investors. It also reflects how Portugal has evolved into a mature, modern, and globally competitive business environment.

If you’re looking to expand, invest, or relocate part of your business in Europe, Portugal deserves your serious attention.

By securing a spot in the European FDI Top 10, Portugal continues to establish itself as one of the most attractive and dynamic economies in Europe.

According to EY report, highlights that most foreign investment projects are concentrated in high-growth sectors:

• Technology & Software
• Business Services
• Green Energy & Sustainability
• Tourism, Real Estate & Infrastructure

These are not only key global industries, but also sectors where Portugal is building deep expertise, talent pipelines, and infrastructure.

But beyond the headlines, what does this shift mean for businesses like yours?

Portugal’s rise in the rankings it’s the result of consistent growth, strategic focus, and smart investment policy. Over the last five years, Portugal recorded the third-highest growth rate in FDI projects in Europe. A clear sign that Portugal’s appeal is accelerating.

Whether you’re planning a European expansion, looking for the right ecosystem to scale, Portugal offers real business advantages: skilled talent pool, favourable business environment, strategic location, and more.

Portugal’s new position is more than a metric. It’s a reflection of a deeper shift. Portugal is becoming a pragmatic, competitive, and forward-looking choice for business hub aiming to grow in Europe.

[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]

[et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row admin_label=”row” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” header_text_align=”justify” text_orientation=”justified” global_colors_info=”{}”]

Portugal as a Global Platform for Investment and Business

 

Portugal has unique attributes that allow it to follow a different and, in many ways, more effective path. By combining consistency with responsiveness, the country positions itself more solidly in a global scenario marked by uncertainty.

 

Portugal stands out for the combination of tradition and innovation that characterizes its economy. Thanks to the hospitality of the Portuguese people and their ability to communicate in multiple languages, particularly English. These qualities foster the creation of a welcoming environment and the building of global partnerships.

 

Portugal has reaffirmed as a safe destination for investors. In 2024, Foreign Direct Investment (FDI) exceeded 13 billion euros, setting a new record. In 2025, with the support of the Portuguese government, the contracting of productive investment accelerated, further strengthening the growth of FDI in the country.

 

Investment contracting has focused mainly on business initiatives, with the Portuguese government providing complementary support to strengthen the internationalization of the economy. AICEP plays an active role in formalizing this support and also monitors foreign investments which, although not eligible for financial incentives, are essential for the country’s development. It has also contributed to reduce bureaucracy.

 

The Portuguese government, through entities such as AICEP, drives economic transformation by supporting companies capable of innovating and overcoming market challenges. The focus is on promoting the export of success and accelerating the growth of new companies with international projection.

 

Success in international trade and strategic economic autonomy depend on the effective combination of national competitive advantages and their integration into global value chains.

 

As part of internationalization, in addition to AICEP’s direct support, there are other instruments financed by EU funds. These consist of public grants for individual company internationalization projects, joint initiatives by associations and sector-wide collective actions. In these cases, AICEP acts as an intermediary body, responsible for analyzing and evaluating the applications, which are then approved by the managing authorities.

 

OportoAccounting plays a key role in Portugal’s growth as a global investment hub. We provide international companies with expert assistance in company formation, tax consulting and comprehensive accounting services. Our support helps clients establish a strong foundation and navigate the complexities of the Portuguese market with confidence.

[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]

[et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row admin_label=”row” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][/et_pb_text][et_pb_text admin_label=”Text” _builder_version=”4.27.4″ _module_preset=”default” text_orientation=”justified” global_colors_info=”{}”]

Local Expertise, Global Impact: Oporto Accounting’s Due Diligence Guides U.S. Investment into Portuguese Industry 

 

 

Oporto Accounting’s multidisciplinary team was instrumental in facilitating the acquisition, executing a comprehensive due diligence process that encompassed accounting,  legal, labor, financial, tax and human resources aspects. This thorough approach was pivotal in ensuring a smooth and transparent transaction, effectively aligning the interests of both parties while securing full regulatory compliance. 

 

The Oporto and Lisbon-based firm, Oporto Accounting, played a central advisory role. Led by Bruno Varajão, economist and expert in business consulting and management, the firm assembled a specialized team for the due diligence and advisory phases. Bruno Varajão commented on the firm’s meticulous approach: “Our goal was to ensure that every aspect of the transaction was thoroughly examined and aligned with both Portuguese and international standards. This demanded a deep understanding of the legal, financial, and operational frameworks of both companies, alongside a collaborative approach to problem-solving.” 

 

Key contributions to the due diligence process included: 

• Legal Due Diligence: Headed by Pedro Cunha, a seasoned corporate and company lawyer, who deftly navigated the complexities of Portuguese corporate regulations to ensure legal compliance. 

• Labor Due Diligence: Conducted by Odete Silva, head of Oporto Accounting’s labour division, who performed a detailed analysis of ABP Impex’s workforce structure, employment contracts, and adherence to labour laws. 

 

The successful completion of this acquisition underscores the critical importance of multidisciplinary collaboration in complex international business transactions. Oporto Accounting’s integrated strategy—combining robust accounting, legal, financial, and labour expertise, serves as a model for how local consultancies can effectively support foreign direct investment into the Portuguese market. This case highlights how a trusted local partner can significantly mitigate complexities and facilitate successful market entry. 

 

This latest achievement further solidifies Oporto Accounting’s reputation as a premier consultancy in Portugal. The firm is recognized for its client-centric methodology and deep industry insights, having been involved in several high-profile transactions in recent years. 

[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]

[et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row admin_label=”row” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Text” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”]

Foreign direct investment reaches record levels in Porto 

Between 2020 and 2024, the city of Porto attracted 2.4 billion euros in Foreign Direct Investment (FDI). Technology and innovation, logistics and infrastructure, and tourism were among the sectors with the greatest weight during this period. Spain, France, and the United Kingdom lead the list of investor countries. 

According to Rui Moreira, the Mayor of Porto, “Over the last few decades, the city has established itself as a destination of excellence for global companies, resulting from a combination of factors such as innovation, economic competitiveness, and talent. Today, due to local universities and research centres, Porto has a highly specialised and internationally recognised workforce.” 

The mayor also highlighted a “significant evolution” that reflects the “growing interest on the part of international companies in establishing their operations in the city.” 

Since 2020, FDI figures in Porto have shown remarkable growth, reaching 302 million euros in 2021, 583 million euros in 2022, and a record 1 billion euros in 2023, representing the peak of the post-Covid recovery period. In 2024, however, there was a decline to 300 million euros, in line with the “global downward trend.” 

Regarding talent as a factor for Porto’s international attractiveness, data from the National Statistics Institute (INE) revealed that more than half of the graduates in science, engineering, and mathematics in the 2022/23 academic year graduated from colleges in Porto and the northwest region of the country. 

“At the same time, Porto stands out for its quality of life, offering a balance between personal and professional life at more competitive costs when compared to other European cities. The vibrant local culture, safety, and hospitality are also factors that distinguish the city in the eyes of international investors. In terms of its commitment to mobility and accessibility, as well as smart infrastructures, Porto is positioning itself as an innovative centre that is ready for the future,” the Mayor added.  

Porto is an excellent investment option for all those wishing to invest in Portugal, as the country is increasingly prepared to receive investments and grow along with companies. OportoAccounting is always on hand to provide expert advice, to help foreign entrepreneurs and investors to find their way around the business environment in Portugal, offering strategic solutions to maximize the success of their investments in the country. 

[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]

[et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row admin_label=”row” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Text” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_padding=”||0px|||” global_colors_info=”{}”]

VW says new entry-level electric car to be built in Portugal

Volkswagen will build its 20,000-euro ($21,636.00) electric car launching in Europe in 2027 at its plant in Palmela, Portugal, its brand chief said on Monday.

 

[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]

[et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row admin_label=”row” _builder_version=”4.27.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.27.4″ background_color=”#FFFFFF” custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Text” _builder_version=”4.27.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”]

[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]

[et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row admin_label=”row” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Text” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”]

The more than 4,000 startups have revenues of 2,602 million €, according to data from the study developed in partnership with Startup Portugal.

In 2024, Portugal had 4,719 startups, 16% more than in 2023, with a combined turnover of €2,602 million, according to data from a survey released by Startup Portugal, which shows that the community of this type of company “continues to grow”.

“After an increase of 11% in 2023 (compared to 2022), in 2024 there is again an increase of 17% in the number of startups, showing a fertile environment for innovation and creation of new businesses in Portugal”, states the report.

Compared to the previous year, the average monthly remuneration of startup workers in Portugal rose 17%, a value that the study’s promoters point out to be around 72% above the national average.

With headquarters in Portugal, OportoAccounting, our expert services are designed to support startups at every stage, from business setup and tax compliance to payroll management and HR consultancy. We help entrepreneurs focus on their business while we manage the operational complexities.

[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]

[et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row admin_label=”row” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Text” _builder_version=”4.27.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”]

Portugal has become an increasingly attractive destination for qualified workers, especially among young people.

Portugal’s popularity among graduates has seen the highest growth of any country, with interest from potential migrants tripling since 2010, rising from position 24th to 13th place among preferences.

According to The Economist, “as populations age, there is growing global competition for skilled young migrants, and countries like Portugal are working hard to attract them”.

This is seen in the “Footloose Index”, which ranks 74 countries by their attractiveness to internationally mobile talent. Interest in Portugal is due to its favorable climate, an advanced digital infrastructure and immigration policies that make it easier to move and stay.

 

With headquarters in Porto, Portugal, OportoAccounting provides a range of HR management and payroll services designed to support businesses of all sizes.

[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]