Strong Points
Some strong points for Portugal include:
– Labour costs and business related costs are significantly lower as compared to other Western European countries
– Strategic geopolitical relations with Europe, Africa and the Americas. In addition to its EU membership, Portugal retains close ties with Brazil, Mozambique, Macau and Angola and can serve as ‘gateway’ to other Portuguese-speaking markets
– Temperate climate
– Socio-political stability and relatively low rates of crime
– Global currency tied to other strong nations
– Well developed physical and IT infrastructure
– Government that has put efforts towards modernising and diversifying their economy
- Government Measures to Motivate or Restrict FDI
- Following the lead of the Prime Minister, Government policies have prioritised the promotion of Portugal’s appeal to foreign investors. As a result, taxation procedures have been simplified, effective warehouse and transport logistics have been developed (especially in the Sines terminal located in the southwest of Portugal) and telecommunication infrastructure has been improved. The Government has also worked to establish the AICEP – an agency for investment and foreign trade. On 28 January 2013, the Government published regulations necessary for golden visa residence programme, which is a simple and fast-track residence permit programme designed to attract foreign investment into the country.
- Other measures implemented to help draw investment include easing some labour regulations to increase workplace flexibility and creating a special aid regime for large products (containing over EUR 25 million). To combat the perception of a cumbersome regulatory climate, the Government has created a ‘Cutting Red Tape’ website (containing information on measures taken since 2005 to reduce bureaucracy) and the ‘Empresa na Hora’, which allows for companies to incorporate in less than an hour.
Country Comparison For the Protection of Investors
| Portugal | OECD | USA | Germany | |
| Index of Transaction Transparency* | 6.0 | 6.0 | 7.0 | 5.0 |
| Index of Manager’s Responsibility** | 5.0 | 5.0 | 9.0 | 5.0 |
| Index of Shareholders’ Power*** | 4.0 | 7.0 | 4.0 | 8.0 |
| Index of Investor Protection**** | 5.7 | 6.5 | 6.5 | 6.0 |
Note:
*The Greater the Index, the More Transparent the Conditions of Transactions.
**The Greater the Index, the More the Manager is Personally Responsible.
*** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
