Portugal among the 10 most attractive countries for FDI

Portugal among the 10 most attractive countries for FDI
Reading time: 7 minutes
Published: 14th July 2021, 12:38pm
Updated: 22nd July 2021, 5:38pm

In a year marked by the pandemic, Portugal joined the 10 most attractive countries for foreign direct investment (FDI), according to the EY Attractiveness Survey Portugal 2021. 

The study assesses annually foreign investors’ perception of the country’s attractiveness for investment and, this year, Portugal conquered the 10th place of the ranking.

Last year, the world economy endured a challenging hit brought by the Coronavirus outbreak, and Portugal was no exception. Nevertheless, it was still a historical year regarding investment transactions. With 154 enrolled projects, Portugal entered the top 10 of the best investment destinations in Europe, showcasing Portugal’s resilience when contrasting with other European nations.

The uncertainties brought about by the COVID-19 pandemic in 2020 caused a fall in the attractiveness of FDI in European countries. Investment levels fell by 13% in Europe, compared to the previous year. In Portugal, 154 FDI projects were announced, representing a decrease of only 3% compared to the 158 counts of the last year. 

Portugal is retaining high investment numbers

Portugal has been consolidating its position as the investment destination in Europe. This year, the large majority of FDI projects were new projects instead of expansions (73% vs 27%).

Evolution in the number of FDI projects in Portugal

This year’s projects resulted in the creation of more than 8,947 jobs, of which 57% resulted from new projects. These are very positive results for Portugal, especially given the pandemic context we are living in, with a global impact on the world’s economy.

Read also:

Despite the slight downturn of 3% in FDI in Portugal, 37% of respondents to the EY Attractiveness Survey, plan to create or expand operations in Portugal in the next 12 months.

A high level of investments in Portugal is here to stay. The results show that investors remain optimistic, as:

  • 37% of investors are planning to establish or expand operations in Portugal over the next year
  • 50% of investors consider that Portugal’s attractiveness will improve in the next three years

Read also:

Foreign Direct Investment (FDI) trends

This year’s results also revealed that Real Estate and Construction have strengthened their position as one of Portugal’s growth drivers. With 39% positive answers, these sectors were considered the second-largest growth driver of Portugal, right after “Digital Economy” - Software & IT Services. These industries were revealed to be resilient during the past crisis, having been one of the least impacted last year.

Read also:

For the upcoming years, both residential and commercial trends are positive, and a new trend is likely to shape this sector. As employees are expected to work from home, real estate investment in residential areas is expected to increase in areas surrounding large cities. Regarding property costs, Portuguese residential prices are more competitive when compared to other European countries.

Looking at Portugal’s main attractiveness factors, the study highlighted the country’s privileged weather, as well as the fact that it is a safe and social place to live. It also mentioned Portugal’s high coverage of infrastructures (transport, telecoms, energy) and its available and high-skilled workforce. Nonetheless, Portugal should keep investing in innovation, transparency and high-qualified professionals, which will be the engines for long term growth.

Read also:

Portugal has currently one of Europe’s most popular immigration schemes - the Portuguese Golden Visa - granting investors the right to live, work, and study in the country and visa-free travel within the Schengen Zone. If you are considering taking advantage of this programme, now is the right time to do it, as changes are being set into motion in January 2022, which means investors will no longer be able to purchase residential properties in high-density areas such as Lisbon and Porto. You can learn more about the Golden Visa changes here.

Read also:

Looking for recapitalisation and profitability through real estate investments? 

Get in touch with us!


Source: EY Attractiveness Survey Portugal 2021

20th July 2021
  Verónica’s path in the real estate business began in 2015 when…
9th July 2021
Portugal is the 5th best-ranked country in the Expat Insider 2021 survey,…

Comprar uma propriedade em Portugall

A Portugal Homes possui profissionais muito experientes e conhecedores, que trabalham com alguns dos promotores mais reconhecidos em Portugal . A nossa vasta experiência permite-nos guiá-lo pelas melhores opções de investimento.

Seja casa de férias ou uma propriedade para investimento, selecionamos as melhores propriedades para o seu perfil e tratamos de todo o processo do início ao fim. Mesmo após a venda! Os nossos serviços de pós-venda assumem a responsabilidade de mobilar a seu gosto, manter a propriedade na sua ausência, dar apoio ao arrendamento, no caso de querer arrendar e muito mais!

Para saber mais sobre Residentes Não Habituais em Portugal e sobre os nossos serviços pós-venda, preencha o formulário abaixo.

É fantástico como o Ryan tinha um conhecimento completo sobre Lisboa e nos tratou da melhor maneira.

Akbar Ali - Investidor do Paquistão

Ryan é muito profissional, mas também amigável e conhecedor do mercado Golden Visa. Também se mostrou flexível, pois, com um curto aviso prévio, viajou do Algarve para me se reunir comigo em Lisboa e substituir 1 colega.

Investir do Reino Unido

A Portugal Homes fez um excelente trabalho mantendo-me atualizado sobre o progresso da compra da minha nova casa, fornecendo relatórios regulares e abrangentes. Isto ajudou-me a aliviar a ansiedade sobre a compra de uma casa durante a pandemia.

Investidor dos EUA

Embora através do Zoom, estabelecemos uma grande confiança na integridade do George. [Foi] importante para nós ter confiança na capacidade do staff em se sentir alinhados em visões.

Donald Collie de Austrália

O processo foi bastante rápido e claro. Obtive toda a informação que precisava na primeira hora de conversa. A experiência foi perfeita.

Tomoko Inoue do Japão

Overwhelming. Luisa has exceeded our expectations on all levels. Trust was established immediately. Enhanced by super friendly professionalism. The networks to banks, accountants, lawyers was seamless. there is not enough space here to write all the positives, enough to say we are making an offer and we only arrived 4 days ago. Its impossible to improve from perfection!

John Mulroe and Wiebke Bock