Category: Business Setup

The International Monetary Fund (IMF) highlights Portugal as an example of economic performance above the European average.

Portugal’s economic performance has surpassed the European average since 2019, with average annual growth rate twice that of the euro zone. Jean-François Dauphin, representative of the International Monetary Fund (IMF), praised the country’s results: “Since 2019, Portugal’s average growth has been double the euro zone average, so it’s an impressive performance.”

Part of this growth reflects the post-pandemic context, which generated an increase in savings and interest in travel, especially in an environment where “labor markets have held up very well, giving a boost to consumption, and investment has been facilitated by European funds, with absorption being faster in Portugal than in other countries”, said the economist.

By offering specialized services in tax compliance, financial planning, and payroll, OportoAccounting, as an English-speaking firm, assists clients in optimizing operations, taking full advantage of Portugal’s thriving economic landscape.

 

A “One Stop Shop” for International Companies.

 

In an increasingly competitive global landscape, Portugal its a prime destination for international companies and startups through its “one stop shop” model, which provides integrated services to streamline business entry and growth. This approach goes beyond reducing bureaucracy; it includes legal, tax, and accounting support, access to financing, strategic partnerships, and talent networks, aligns perfectly with the recommendations of “The Future of European Competitiveness”.

The “one stop shop” model isn’t just a matter of convenience: it is a core strategy for Portugal’s economic future. As Europe faces significant challenges in innovation,
productivity, and growth, Portugal’s initiative-taking and integrated approach positions it to become a leading destination for international companies. By doing so, the country will not only enhance its own competitiveness but also contribute to the growth of the European economy.

With specialized business networks and resolute players across its value chain, Portugal is ready to provide the solutions international companies need to succeed. This comprehensive approach, combined with the country’s strategic advantages, makes Portugal an increasingly attractive option for businesses looking to establish or expand their presence in Europe.

With headquarters in Porto, Portugal, OportoAccounting is an English-speaking accounting and payroll firm. Our team of accountants and lawyers can assist in setting up your startup in Portugal and provide HR consultancy and accounting services.

In recent years, Portugal has emerged as one of Europe’s most attractive destinations for Foreign Direct Investment (FDI), capturing the attention of international investors and multinational corporations.

Over the past five years, the country has experienced an impressive 40% increase in FDI projects, positioning itself among the top 10 preferred locations for investment in the region. This growth is highlighted by the EY Attractiveness Survey, which underscores Portugal’s rising prominence in the European investment landscape.

A key factor contributing to this surge is Portugal’s economic resilience. While many Eurozone countries faced significant challenges, Portugal consistently outpaced its peers in GDP growth, bolstering investor confidence and attracting substantial foreign capital. This remarkable performance has made Portugal a beacon of stability in an uncertain economic environment.

This achievement allowed the country to maintain its seventh position in Europe for FDI attractiveness, according to the latest EY survey. The diversity of sectors attracting investment is another positive sign.

Headquartered in Portugal, OportoAccounting is an English-speaking firm offering a wide range of consulting, accounting, and payroll solutions for foreign companies looking to incorporate in Portugal.

Portugal is the sixth largest destination for foreign direct investment (FDI) in Europe. 

 

This is the conclusion of a study published by consultants Ernst & Young (EY), which reveals that the reconfiguration of global supply chains is attracting more investment, especially to Southern Europe.

 

The country rose two positions in the ranking of countries that attract the most FDI in Europe and recorded the highest growth in FDI projects among the top 10 European countries. Utilities, business services and telecommunications lead new bets on FDI.

In 2022, the number of FDI projects achieved by Portugal increased by 24%. Portugal had the highest increases.

 

OportoAccounting offers expert financial and advisory services to help foreign investors navigate Portugal’s regulations. From company formation to tax optimization, we ensure your business stays compliant and well-positioned for growth.

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Foreign investment in Portugal renews highs in the second quarter and already represents 69% of Portugal’s GDP.

 

Stock of Foreign Direct Investment in Portugal rose to 183.9 billion euros in the 2nd quarter. Portugal’s Direct Investment Abroad also increased to €67.6 billion.

The increase in foreign investment, which reached record levels and represents 69% of GDP, suggests a growing confidence of international investors in the Portuguese economy.  As an English-speaking accounting and payroll firm in Portugal, Oporto Accounting, observes that  this can be interpreted as a sign of economic stability and growth potential, which tends to reinforce Portugal’s image as an attractive investment destination.

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Startup Portugal is a non-profit public benefit organization that aims to promote Portuguese entrepreneurship.

 

In 2024, Startup Portugal provided support to 120 national startups, including 50 through the Business Abroad program, which raised 100 million € in investment and employ more than 600 workers.

 

For Startup Portugal, this data shows “the potential of these Portuguese companies that aspire to international expansion”

 

In addition to the companies supported under Business Abroad, Startup Portugal supported “over 70 startups at these events, through initiatives to connect with the local economy, promoting contact with other countries.

According to the organization, Business Abroad is a program that “supports the presence of Portuguese startups at major global technology events” for their internationalization.

 

Since the program began, Business Abroad has supported more than 320 startups at international technology events and in the most relevant markets for this sector.

 

Based in Porto, Portugal, Oporto Accounting offers comprehensive support for setting up your startup in the country. Our team of accountants and lawyers guides entrepreneurs, investors, and corporations through every step of business formation, helping you choose the best legal structure and providing HR, accounting and grant services.

Portugal emerged as the leader in business creation in the European Union during the second quarter of 2024, according to data released by Eurostat.

 

According to Eurostat, looking at European Union countries,Portugal led the registration of new businesses, with an increase of 7.6% compared to the first quarter.

 

The number of new business registrations decreased by 2.1% in the EU compared to the first three months of 2024.

 

Significant increases were observed in Portugal’s information and communication sectors, which saw a 4.8% rise in new businesses. The transportation sector grew by 1.6%, while accommodation and food services experienced a 1.1% increase in business creation.

Portugal’s success in business creation reflects the effectiveness of its policies aimed at supporting startups and simplifying business registration processes, positioning the country as a dynamic hub for innovation and entrepreneurship in Europe.

 

At Oporto Accounting, based in Portugal, we’re here to help with our expert services in company formation, accounting, and HR consultancy. Let us guide you in successfully establishing and growing your business in Portugal.

The Portuguese Government has new proposed law exempts to start-up multinational groups from a supplementary 15% minimum tax for their first five years of international operations. This aims to support groups beginning their global expansion without financial strain.

 

The regime requires multinationals and large groups with revenues of 750 million€ or more in the initial phase of business activity are excluded from the application of the 15% minimum supplementary tax for the first five years.

 

However, according to the law, the supplementary tax due by a final parent entity is “equal to zero” for the first five fiscal years. In addition, it establishes that this exemption also applies to large national groups that became newly qualified due to increased turnover.

However, according to the law, the supplementary tax due by a final parent entity is “equal to zero” for the first five fiscal years. In addition, it establishes that this exemption also applies to large national groups that became newly qualified due to increased turnover.

 

The Portuguese Government also stipulates that multinational groups with parent entities located outside Portugal also benefit from a zero supplementary tax rate during their initial international phase.

 

OportoAccounting services helps foreign entrepreneurs and investors to setting up in Portugal their Startup and business, providing services such as company incorporation, accounting, bookkeeping and payroll. Companying in every stage of the company formation process.

As an accounting and payroll English speaking firm in Portugal, OportoAccounting observes that the number of exporting companies is currently 40,000, has risen successively over in recent years in Portugal, a growing trend that was only interrupted in the pandemic years. The notable increase has been “especially significant” in the last two years, with more than 4,000 companies doing business abroad. By 2022, these companies contributed to 94 billion euros in exports, that is, about 40% of Portugal’s Gross Domestic Product (GDP).

 

A recent analysis reveals that between 2019 and 2022 the turnover of exporting companies grew faster than in companies that focused exclusively on domestic market, having registered an average annual rate of 11% in annual terms. This growth underscores the dynamic nature and resilience of Portugal’s export sector.

These regular exporters play a crucial role, representing 90% of the total value of Portugal’s foreign business in the last year. The consistent rise in the number of exporting companies and their significant contribution to the economy reflects Portugal’s growing presence in the global market, driving economic growth.

 

As English speaking accountant in Portugal, OportoAccounting is a firm that does business with international companies and foreign clients, also assist other companies in setting up in Portugal.

As an English-speaking accounting and payroll firm based in Porto, Portugal, Oporto Accounting notes that Portugal is the seventh most peaceful country in the world according to the Global Peace Index 2024 and ranked in the fifth position in Europe.

The Global Peace Index (GPI), produced by the Institute for Economics and Peace (IEP), is the world’s leading measure of global peacefulness. The 2024 GPI ranks 163 countries based in three main areas: militarization, societal safety and security, and ongoing domestic and international conflict.

Portugal excels in these domains, ranking 2nd globally in militarisation. In societal safety and security, the country achieved a low score, indicating a high level of safety for its citizens. Additionally, with also a low score in ongoing domestic and international conflict, Portugal demonstrates a remarkable state of peace with very few internal orexternal conflicts.

Produced by the international think tank, the Institute for Economics and Peace, the report presents the most comprehensive analysis to date of peace, economic value, trends, and ways to develop peaceful societies, covering 99.7% of the world’s population through analysis of 23 qualitative and quantitative indicators.