Portugal has taken great strides in recent years to boost growth by increasing its competitiveness and simplifying the process of investing and doing business in the country.
It has now become much easier to invest in Portugal, thanks to reforms in competition law, the labor market, and the tax system, all put in place to further drive an economic recovery.
The country is currently in the enviable position of having world-class infrastructure, a highly qualified young workforce, a safe environment, and high standards of investment protection.
The legal system in Portugal is based on non-discrimination with regard to the national origin of investment, and foreigners are permitted to invest in all economic sectors open to private enterprise.
However, there are limitations when it comes to investing in Portugal. We are talking about certain activities, among them defense, water management, public telecommunications, railway, maritime transportation, and air transport (mainly those industries centered around heavy infrastructure in Portugal).
In its 2016 Doing Business profile on Portugal, the World Bank ranked Portugal 23rd out of 189 countries. It is ranked relatively high in terms of the ease of starting a business and enforcing contracts, but low in terms of getting credit and paying taxes.
Businesses in Portugal frequently complain about red tape with regard to registering companies, filing taxes, receiving value-added tax refunds, and importing materials. Because government decision-making tends to be centralized, obtaining approvals and permits is often said to be time-consuming and costly.