Economy and Business Opportunities from Portugal
Read more: Golden Visa Portugal
Main Sectors of Industry
The agricultural sector comprises around 2.1% of Portugal’s GDP and employs 6% of the active population (World Bank, 2019). The main crops produced include cereals, fruits, vegetables and wine. Portugal is the ninth largest wine exporter in the world and in the first three-quarters of 2019 wine exports recorded an increase of 3.6% in value compared to the previous year (around EUR 580 million).
Mining, specifically copper and tin, represents a good part of the country’s GDP, with Portugal being one of the largest marble exporters.
The forests of Portugal provide a large part of the world’s supply of cork.
The industrial sector employs 24% of the workforce and contributes to 19.2% of Portugal’s GDP. The manufacturing industry is modern and dominated by small and medium-sized companies. Its main sectors of activity are metallurgy, machinery, electrical and electronics industries, mechanical engineering, textiles and construction. According to data by the World Bank, the manufacturing sector alone contributes 12% of GDP. Portugal has increased its role in the European automobile sector and has an excellent mould manufacturing industry. Biotechnologies and IT are also growing.
The services sector comprises 65.3% of GDP and employs nearly 69% of the active population. Tourism in particular plays an important and rapidly increasing role in the Portuguese economy: in 2018, it grew by 8.1% and gave employment to 21.8% of the workforce (World Travel & Tourism Council).
Why Invest in Portugal?
Portugal is one of the most peaceful countries in the world with a high quality of life for its residents. It also has one of the youngest workforces in the world and, in terms of business, operating a company in Portugal does not cost you a ton of money. Investing in Portugal can be one of the best business decisions you will make. Its economy is moving upward with an annual growth rate of approximately 0.8 percent. Company formation in Portugal is also easy. Before you decide to open a company in Portugal, it would be wise to take a look at some of the important factors that can stand at the base of your investments in Portugal.
Investing in real estate sector
The Golden Visa scheme is perhaps one of the most attractive reasons why you should invest in Portugal. It is a scheme wherein you can acquire residency when you purchase a property in Portugal. This means that company incorporation in Portugal could result to businessmen gaining residency once there is an investment in property. With a minimum investment of €250,000.00 on property, you can already reap the benefits of this scheme.
Being part of the European Union
Portugal’s membership with the European Union is another important factor to consider if you want to set up a company in Portugal. Membership of the European Union means common currency and free movement and trade within all member states. Portugal is one of the leading members in the European Union in terms of providing services, biotechnology and information technology. The country has good trade relations not only with EU countries but also with the United States, Brazil or countries in Africa.
Foreign investment incentives
Foreign investments are one of Portugal’s top priorities. The government considers them as one of the most important factors in bringing about economic growth. This is the reason why its government has imposed lesser restrictions on its foreign investments as compared to other countries. It allows foreign investments in all activities under the private sector. If you plan to engage in governmental activities, all you have to do is to secure an approval from the government. This is just another reason why you should invest in Portugal.
Knowledgeable workforce
In Portugal you will find a workforce that is young, brilliant and energetic. The Portuguese universities have seen the highest enrollment rate in recent years and they are expected to produce qualified graduates in upcoming years. Its universities have also partnered with schools like MIT in order to boost student knowledge in science and technology. Once you open a company in Portugal, you can be assured to have quality employees at your disposal.
Attractive investment fields in Portugal
Portugal has many investment opportunities for those who want to start a company. Among those with the highest potential for receiving FDI, we can list the following: tourism, biotechnology, the electric and electronics sectors, the new information and technology sectors, parts of the chemical manufacturing sector and the shared services centers (such as call centers).
Read more: Frequently asked questions about Golden visa Portugal
