Are you about to start a business in Portugal?
Portugal is a beautiful country with many different things to offer. It is also a very welcoming place to live and work. With its friendly people, beautiful beaches, and rich history, Portugal is definitely worth checking out!
Economic growth in Portugal
Portugal is one of Europe’s most successful economies. In 2017, the country had the highest GDP per capita in the European Union. This year, the government expects the economy to grow by 2.3 percent. According to the World Bank, Portugal’s economy grew by 3.7 percent last year. This is higher than the EU average of 1.9 percent.
As a result of the growing economy, unemployment has decreased from 11.4 percent in 2014 to 8.5 percent in 2016.
The number of people living below the poverty line has also declined significantly. In 2015, about 12.8 million people lived below the poverty line. By 2017, this figure had dropped to 7.6 million. This means that more people were able to afford basic necessities such as food, clothing and shelter.
The government has taken steps to improve education and healthcare services. These measures helped reduce the gap between rich and poor. In addition, the government has been working towards reducing income inequality. For example, it has increased taxes on the wealthy.
This has resulted in a decrease in tax evasion. The government has also made improvements in infrastructure. This includes building new roads, bridges, and schools. It has also invested heavily in renewable energy sources. This has led to an increase in the production of clean energy.
The government has also encouraged businesses to hire more employees. This has resulted in an increase in employment opportunities.
Overall, the Portuguese economy has performed better than expected. The government has managed to create jobs while improving the quality of life for its citizens.
Doing business in Portugal could be your door into the European Union
Portugal is a country with a lot of potential for doing business in Europe. Its economy has been growing at a steady pace over the last few years, and its GDP per capita is higher than the EU average.
The Portuguese government has also made efforts to attract foreign investors, offering tax breaks and incentives. In addition, there is a large pool of skilled labor available, as well as a highly educated workforce.
However, there are still challenges facing businesses operating in Portugal. One of the biggest problems is bureaucracy. Although the country has made progress in terms of streamlining regulations, it still lags behind when compared to countries like Germany or France.
Another challenge is the language barrier. Many companies find it difficult to communicate effectively with their employees, clients, and suppliers. Finally, there are issues related to corruption and red tape. These issues can prevent entrepreneurs from getting access to financing, and they can slow down projects. However, despite all of these obstacles, Portugal remains an attractive place to invest in.
Why Invest in Portugal?
Portugal offers several advantages for investors looking to expand overseas.
First, it is located in Southern Europe, making it easier for international companies to reach consumers in the region. Second, it is a member of the European Union (EU), allowing companies to benefit from free trade within the bloc.
Third, it is a relatively small market, meaning that it is easier for local firms to compete against larger multinationals.
Fourth, it has a strong economic growth rate, with GDP expanding by 3% in 2013. Finally, the country has a high level of education, which means that there is a ready-made pool of qualified workers. This makes it easier for companies to recruit talent. All of these factors point towards a bright future for Portugal.
What Are the Challenges Facing Foreign Investors?
Although there are many benefits associated with investing in Portugal, there are still challenges that face foreign investors. One of the most significant concerns is bureaucracy.
Although the government has taken steps to simplify regulations, it still lagged behind when compared to other countries in Europe. Another issue is the language barrier.
Companies often struggle to communicate effectively with their workers, clients, and suppliers, which can lead to miscommunication and delays.
A third problem is a corruption. Some officials may take advantage of their positions to extract bribes or favors from foreign investors.
Finally, there is a lack of transparency. There is no clear definition of what constitutes “foreign investment” in Portugal, which makes it difficult for investors to understand how to navigate the system.
How Can Foreign Investors Benefit from Tax Breaks and Incentives?
One way that foreign investors can overcome these challenges is through financial assistance. For example, the government provides a variety of tax breaks and subsidies to encourage foreign direct investments. These include:
• Preferential tax rates for foreign investors
• Subsidies on electricity bills
• Subsidies for research and development
• Grants for capital expenditures
Check our more detailed guide about business opportunities in Portugal
Which city is best for business in Portugal?
Lisbon is one of the best cities in Europe to do business. The Portuguese government has invested heavily in infrastructure, making it easy to start a business. There are also plenty of incentives for entrepreneurs, such as tax breaks, grants, and loans.
Porto is another city that has been getting more and more foreign investment and offers similar advantages. It has a strong industrial base and is home to some of the most important companies in the world.
Other cities like Coimbra, Braga, Aveiro, Faro, and Funchal have all benefited from incentives and are also great places to start a business in Portugal.
Can I hire highly qualified workers in Portugal?
Portugal has still a somehow high unemployment rate. But their workforce is quite cheap and qualified compared to many other EU countries. This means that there are many people who need jobs, and also many companies looking for new employees.