Portugal remains among the 10 most attractive destinations for foreign investment

Portugal has established itself as one of the ten most attractive destinations in Europe for Foreign Direct Investment (FDI), ranking 7th in 2023, according to the EY Attractiveness Survey Portugal. Recognized for its geopolitical stability and skilled workforce, the country attracts investors in the sectors of technology, software and business services. In 2023, the number of FDI projects decreased by 11%, totaling 221 initiatives, reflecting factors such as inflation and energy costs in Europe.

Featured regions and sectors

Lisbon and the North remain the main hubs for FDI, but the Central region emerges as the new favorite, almost doubling the number of projects between 2022 and 2023. The country stands out in clean technology and innovation, with the Software, IT and professional services sectors leading foreign investment. Countries such as USA, France and Germany stand out among the biggest investors.

Expectations and growth potential

Despite the slowdown, 84% of investors plan to expand or start operations in Portugal by 2025, and 77% expect the country’s attractiveness to improve in the coming years. Streamlining bureaucracy and strengthening the digital agenda are seen as essential steps to make Portugal an even more competitive destination.

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