Portugal Land of Opportunities
Portugal was just like Spain severely hit in 2009 during the Big Recession. But since then the country reinvented itself and it is back on track. It is certainly more than a hot tourist destination, with great food, weather, beaches and architectural splendor. Tourism was absolutely booming until the start of the pandemic. This year, however, will be a tough year, given the importance of tourism and related industries (on catering, lodging, transport and entertainment sectors)
Lisbon and Porto are global cities, with rich and diverse cultures. Yet, it still feels like the area is a hidden gem: history, art, music, etc. all become more visible, with some very distinct aspects that differentiate Portugal from other European countries.
In general, Portugal is well perceived on key structural factors such as quality of life and social stability. Attractive property assets, Infrastructure and local labor are appealing to investors worldwide. (mainly Brazilians, Chinese, Angolan, Americans, British, Northern European and especially French)
Attractiveness will also remain strong in the new normal and once we leave the pandemic nightmare behind us, and, therefore, it will continue to be a preferred destination for FDI.
The Portuguese government is very supportive of high-tech industries and innovation, developing education and skills, and reducing taxation.
ICT sector development over the last 5 years was promising , powered by a robust talent supply. A sizable and skilled talent pool with strong digital skills can also be a remote solution for hard-to-fill vacancies from Western-European companies requiring ICT skills.
In close imitation of Spain, Portugal positions itself more and more as a destination to visit but also to live, study and invest in”. And this is expected to increase in the light of the gradual arrival of foreign remote workers (especially from the EU) to ultimately establish in Portugal.
Therefore, Real estate and construction are the real powerhouses of the Portuguese economy, fueled by Major migratory-golden visa, tax benefit seeking residents – and larger tourism inflows.
The Golden Visa scheme and the special tax regime for non-habitual residents, for example, have attracted many new arrivals to the country and have fostered rising demand for new housing.
In the end, the property market is still more affordable when compared to other Western European countries like the UK, France, Netherlands etc : you’ll be able to get more value for your money, although Lisbon is rapidly catching up with other EU cities like Brussels, Berlin although still substantially cheaper than London, Paris, Amsterdam and presumably one of the most attractive cities to live in.
Lisbon is now one of the best places to start a new business and its startup ecosystem is now growing faster than the European average. A significant number of foreign companies are using Portugal as a more convenient and affordable way to assemble their digital platforms and more and more also establish their tech hub here. (with very competitive development prices compared to UK, Benelux, Germany etc.).
Based on a survey of 885 property investors and professionals by PwC, and the Urban Land Institute, the Portuguese capital ranked 11th position last year to first in 2019 in its Emerging Trends report.