Exporting guide to Portugal
Entry route to lusophone markets
Portugal is a gateway to Portuguese-speaking markets. These include Brazil, Angola and Mozambique.
Economic growth opportunities
The Portuguese economy is now growing consistently above the Eurozone average, with a very competitive knowledge-based export sector and a buoyant start up scene. Financial services, clean growth, life sciences and technology represent the biggest opportunities for British exports. Over the medium-term, there’s likely to be significant business opportunities in infrastructure, particularly rail and airports, and mining.
Ease of doing business
39th
out of 190 countries (World Bank, 2019)
Currency
Euro
Business language
Portuguese, English
GDP per capita
$23,186
UK is $42,558 (IMF, 2018)
Economic growth
2.2%
(IMF, 2019)
Time zone
GMT +0
(Portugal, Madeira)
Opportunities for exporters
There are opportunities for UK companies across a broad range of industries. Our trade advisers in Portugal have identified particular opportunities for UK businesses in the following sectors:
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Financial services
Financial services is facing increasing challenges, such as digitalisation and increased regulations. The British innovation and capability in areas like fintech, insurtech and regtech is valued in the region.
Demand for British companies
There is demand from Portuguese companies for expertise in digitalisation. In particular, there is demand for companies specialising in big data, analytics, fintech, legaltech and regtech.
Crypto-currency trading and investment
Portugal still lacks deep knowledge on crypto-currencies, blockchain systems and AI platforms that can attract national and foreign investment. UK companies are in demand in these areas due to their expertise in the sector.
E-payment solutions and forex Solutions
Many businesses in Portugal could benefit from new and easy multi-currency e-payment solutions, which British companies can provide with their expertise and innovation.
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Life sciences
The life sciences sector presents a wide range of opportunities for innovative and cost-effective solutions, particularly in healthcare. Current priority areas include personalised medicine, chronic disease management, assisted living technologies, remote monitoring sensors, AI and analytics for health, wearable technology and new diagnostics solutions.
Cost efficient solutions
Due to the Portuguese Government implementing restructuring measures aimed at the sustainability of its National Health Service, as well as the private sector continuing to expand their offering, opportunities have arisen for suppliers who can produce innovative cost-efficient solutions. UK companies who can offer this will be well received.
Partnerships
Portuguese companies are looking for commercial and technological partnerships that are both cost effective and innovative. Their aim is to add value to their projects in Portugal and overseas, including in other Portuguese-speaking countries.
Recognition of British companies
UK expertise in life sciences is highly regarded in Portugal and there are many links with British companies, universities, and research and development institutions. Portugal is also an early adopter of new technologies, and somewhere players can benefit from one of the most advanced digital infrastructures in Europe.
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Technology
Portugal is a major European hub for tech, and a receptive environment for innovative products.
Co-operation and investment
The main telecoms operators in Portugal have made substantial investments in the development of a fibre-optics network, one of the best in Europe, over the last decade. They are now preparing for the next stage in innovation and co-development with other tech providers. This translates into further investments in areas such as 5G, smart cities, visualization and digital experience, cloud services, data analytics, AI and machine learning.
Leadership in innovation
High profile technology events taking place in Portugal - notably the Web Summit - have expanded the country’s reputation as a tech and innovation hub. They've encouraged local players to innovate and adopt new technology solutions at a faster pace.
Testbed potential
Many global tech players use the Portuguese market as a testbed for new solutions given the rate of early adopters, which makes it an interesting place to pitch new solutions to well established operators.
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Mining and energy
Portugal is a country with very diverse and complex mineral resources. In 2016, the mining industry was estimated to have a production value of €923 million, predominantly in the national production of ores, minerals and water (Directorate General of Energy and Geology, 2016).
Deep mining
Portugal is very rich in mineral deposits which are not easy to extract and require sophisticated expertise. Therefore, British companies specialised in deep mining on the continent and in the sea bed are in demand in Portugal.
Refinery industry
The exploration of minerals, such as lithium, require a process of refinery to obtain a level of high purity which Portugal does not have. Therefore, UK companies with this expertise, in particular with factory businesses, are in demand.
Lithium battery production
Although Portugal has high deposits of minerals like lithium, it lacks infrastructure for production and manufacture of products with lithium, such as storage batteries. Companies specialised in this are in demand.
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Tourism
Tourism is playing an increasingly important role in Portugal’s economy, and accounted for almost half its services exports in 2017 (OECD, 2019).
Investment in eco-tourism opportunities
There is demand from consumers for tourism outside of Portugal's urban centres. There is a growing market for eco-tourism and tourism which focuses on nature and sustainability. There are opportunities for British companies that have experience in this area.
Investment in high-end, luxury hotels
Portugal does not currently have many high-end, luxury hotels. There is an opportunity for British companies who are interested in investing in the luxury hotel market.
Doing business in Portugal
Preparing to export
Tax
The Portuguese Ministry of Finance (website is in Portuguese) provides information on the Portuguese tax system and the conventions for the avoidance of double taxation.
The statutory corporate income tax rate for Portugal is 25%. The effective corporate tax rate is 29.5% to 31.5%.
VAT
VAT is known as IVA in Portugal and the standard rate is currently 23%. Rates of 6% and 13% can also apply.
The VAT rate for goods imported into Madeira and the Azores are 22% and 16% respectively.
The Portuguese VAT Division provides further information on VAT payments.
Standards and regulations
Products and packaging should meet EU standards.
The Food and Economic Security Authority (website is in Portuguese) is the authority specialised in securing food safety and for conducting inspections.
When exporting to Portugal, you must provide all transport documents, commercial invoices, and certificates of compliance relating to quality and sanitary measures.
Trade barriers
Check for any reported barriers to trading with Portugal.
Report any trade barriers that are affecting your business so we can help fix them.
Operating in Portugal
Intellectual property
As a first step, we advise you to speak to an intellectual property lawyer if you think you need patent protection when exporting.
IP law, especially for patent protection, is not totally harmonised within the EU.
If you wish to protect your intellectual property in Portugal, you have to do it through Portuguese Institute of Industrial Property (INPI).
Payment terms
Payment terms are usually 30, 60 and 90 days. Large corporations, including large retailers, usually negotiate or impose longer payment terms that can last up to six months.
Considerations
Trial periods of between 6 months and 1 year are recommended before signing lengthy agency contracts. Despite recent reforms, the legal system is still complex and slow.
Next steps
DIT can advise you on doing business abroad, and help put you in touch with other people who can help such as lawyers and distributors.
