Portugal Country profile

Opening Hours and Days

Businesses are closed between 12:00 noon and 3:00 p.m. (for lunch), on Saturday afternoons and Sundays. Banks typically close at 3:00 p.m., while shops close at 7:00 p.m. Hypermarkets close at 12:00 midnight from Monday to Saturday, but will also close at 12:00 on Sundays in November and December.

Public Holidays

Holiday Compensation

Consult the Portugal Employment Reform.

Periods When Companies Usually Close

For Further Information

Public holidays
Worldwide Public holidays

Tax Rate For Foreign Companies

Resident companies are taxed on their worldwide income. Foreign companies are subject to the same taxes as local companies, but they are only taxed on Portuguese-source income. The tax rate on investment income that is both derived by non-resident entities subject to a privileged tax regime in their country of residence and included on Portugal's blacklist is 35%. Certain withholding taxes apply to income generated in Portugal that is attributable to non-residents without a permanent establishment in the country.

Capital Gains Taxation

Capital gains are generally included in taxable profits and taxed at the standard corporate rate. Gains on the disposal of shares may be exempt if the following conditions are met: 1) the shareholder is not considered a transparent entity 2) the entity has held at least 10% of the capital of the subsidiary for at least 12 months 3) if the entity is a foreign company the corporate income tax in its country of residence covers at least 60% of the tax due in Portugal. The exemption does not apply if the dividend payment is tax-deductible. Since 1 January 2018, capital gains on the indirect sale of certain properties are also subject to corporate income tax.

Main Allowable Deductions and Tax Credits

Expenses incurred to generate profits and certain provisions (including bad debt and inventory losses) are deductible from the corporate tax base. With certain limitations, impairment losses on doubtful debts are deductible for tax purposes when an insolvency or recovery has been requested or the credits have been claimed in court. An intellectual property (IP) regime provides a 50% tax credit for income derived from the transfer or use of patents and industrial designs or models. Further tax incentives are available for qualifying new investment projects, R&D, fixed-asset investments and the creation of jobs. Small companies also benefit from special tax regimes. Start-up and research expenses are deductible for tax purposes in the respective tax year.

Donations to authorised charitable institutions are allowable at up to 0.8% of turnover, with the possibility for an increase of the amount actually spent up to 150%, same as for donations of computers, software equipment, training, and consultancy in the area of computers granted to the national government, municipalities, foundations, museums and other charitable institutions. Donations to authorised educational, sport, and environmental institutions are allowable at up to 0.6% of turnover, with the possibility for an increase of the amount actually spent up to 140%.

Pension, invalidity, and health schemes are tax-deductible up to a rate of 15% of annual staff expenses, only if, among other conditions, they are available to all employees and the management and disposition of the benefits are outside the control of the taxpayer. Companies may only deduct net financing expenses up to the higher of the following limits: EUR 1 million or 30% of the earnings before depreciation, amortisation, taxes, and net financing expenses, adjusted for tax purposes.

A tax credit covering 32.5% of research and development expenditure is available for the year in which these expenses are incurred and can be carried forward for a period of eight years. Companies can claim an additional tax credit of 50% of R&D expenditure if their expenditure exceeds the average in two fiscal years (capped at EUR 1.5 million).

Costs incurred by SMEs in 2021 and 2022 with joint external promotional activities are tax deductible for 110% of the respective amount.

Net operating losses can be carried forward (up to 70%) for a period of five years (12 years for SMEs - capped at 70% of the taxable income, increased to 80% for tax losses incurred in 2020 and 2021 due to the COVID-19 crisis). The carryback of losses is prohibited.

Other Corporate Taxes

Other taxes levied include property transfer tax (Imposto Municipal sobre as Transmissões Onerosas de Imóveis or IMT - payable by the buyer at a maximum rate of 6% on the transfer of residential property, 5% on the transfer of rural property, 7.5% on the transfer of other urban property and 10% if the purchaser is located in a listed tax haven); municipal real estate holdings (Imposto Municipal sobre Imóveis or IMI - 0.3% to 0.45% for urban real estate, 0.8% for rural real estate, 7.5% for property owners residing in a tax heaven); stamp duties (0.5% to 10%, the latter being applicable to certain donations and inheritances).

A standalone tax of 35% is levied on indemnities and compensation as well as bonuses paid to members of the board and managers (if exceeding 25% of their annual remuneration and EUR 27,500). Certain deductible expenses are subject to a standalone tax, including entertainment expenses (10%), undocumented expenses (taxed at 50%, or 70% in the case of taxpayers enjoying a partial or total tax exemption), expenditure on private cars (taxed at rates from 5% to 35% depending on the acquisition price of the car), daily allowances and employees' travelling costs (taxed at 5%).

A special contribution is levied on companies operating in the financial sector, with two different tax bases: the contribution is applicable at a maximum of 0.11% on base I and at 0.00030% on base II.

Social security contributions paid by the employer amount to 23.75% of the monthly gross remuneration. In an effort to mitigate the economic effects of the Russia-Ukraine conflict, employers and self-employed persons active in specific sectors listed in Ordinance No. 141/2022 were allowed to defer payment of social security contributions due for the months of March, April, May, and June 2022, as follows: one-third of the contributions shall be paid normally in the month due; and the remaining two-thirds shall be paid in up to six equal installments beginning in August 2022 (no interest applies). However, if contributions had been paid in full for the month of March, no contributions were due for the months of April and May.

A carbon tax due by the user in the amount of EUR 2 applies on air, sea and river travels. A levy amounting to EUR 0.30 per package applies on disposable plastic packages (from 2023, the same rate will apply on aluminium packages).

Special taxation rules apply to entities engaged in activities such as oil exploration, prospecting, and production, and to those operating in the gaming industry.

Other Domestic Resources

Portuguese Tax and Customs Authority

Doing Business: Portugal, to obtain a summary of taxes and mandatory contributions

Country Comparison For Corporate Taxation

Accounting System

Accounting Standards

IFRS Standards apply to all domestic and foreign public companies. SMEs may choose between IFRS Standards as adopted by the EU and Portuguese national accounting standards. Subsidiaries of foreign non-IFRS companies must use Portuguese accounting standards.

Accounting Regulation Bodies

CNC, Portuguese Accounting Standards Board

Accounting Law

Decree Law No. 98/2015 - Código das Sociedades Comerciais (Companies Code), Decree Law No. 486/99 - Código dos Valores Mobiliários (Securities Code).

Difference Between National and International Standards (IAS/IFRS)

IFRS Standards are required for all domestic public companies and listings by foreign companies (except in the case of a foreign company whose home jurisdiction’s standards are deemed by the EU to be equivalent to the IFRS Standards. IFRSs are not required for SMEs, however they have the option to choose between IFRS Standards as adopted by the EU and Portuguese national accounting standards.

Accounting Practices

Tax Year

The tax year generally corresponds to the calendar year, although a different tax year is possible for resident companies and non-resident companies with a permanent establishment in Portugal. Once selected, the same tax accounting period must be maintained for at least five years.

Accounting Reports

Company financial statements must include a balance sheet (simple or detailed presentation), a profit and loss account (drawn up as a table), notes to the accounts and an annual report (called D.O.G. 'Documento de Orgão de Gestão').

Publication Requirements

There are three types of companies which are required to publish their financial statements: public companies, limited liability companies and companies listed on the stock exchange.

A company's financial statements are to be published once a year.

Accountancy Profession

Accountants

There are 3 categories of accountant:
- the "Contabilista" : an accountant, with 3 years of higher studies, but with no capacity to sign the financial statements of the company;
- the "T.O.C" (técnico oficial de contas) : a chartered accountant, with 3 or even 5 years of higher studies in accountancy, and who has taken an examination to be a member of the Chamber of TOCs. He has the capacity to sign the financial statements;
- the "R.O.C." (Revisor Oficial de Contas) : a statutory auditor, with 3 to 5 years of higher studies in accountancy, economy, management or audit. Either they take an examination to join the Order of ROCs, or the Studies Institution is recognised by them and by the government. There are individual ROCs (more than 1 300 are registered) and ROC Societies (SROC), with more than 200 registered companies.

Professional Accountancy Bodies

OCC, Order of Chartered Accountants
APOTEC, Portuguese Association of Accounting Technicians
APC, Portuguese Association of Accountants
OROC, Order of Statutory Auditors

Member of the International Federation of Accountants (IFAC)

Yes

Member of Other Federation of Accountants

Member of the European Federation of Accountants and Auditors for SMEs (EFAA)
Member of Accountancy Europe
Member of the Federation of Latin American Chartered Accountants.

Audit Bodies

Companies have to seek a statutory auditor to conduct an annual audit of the financial health of their organisation.

Some external auditors that can be utilised include: Mazars, D.F.K e Associados and Moore Stephens

Allowable Deductions and Tax Credits

Business expenses are generally deductible at different rates, including entertainment expenses and per diems.
Tax credits may be claimed according to the family composition, children (fixed amount of EUR 600 per dependant, plus an additional deduction of EUR 126 when the dependents are aged up to 3 years old), certain general expenses (35% of the expenses incurred by any member of the household, limited to EUR 250 per taxpayer) and health expenses (15%, up to a limit of EUR 1,000), interest on certain loans and financial leasing rent, education expenses (30% of expenses incurred for each member of the household, capped at a global limit of EUR 800), retirement home expenses, VAT borne in certain sectors, qualifying pension fund contributions, donations (without limits if made towards central, regional or local administration and foundations or 15% for other beneficiaries), alimony payments (20%), and more.
150% of union fees may be deducted against employment or pension income, up to a limit of 1% of the gross employment or pension income. EUR 4,104 of pension income is tax exempt.

A partial exemption is available on employment income earned by taxpayers aged between 18 and 26 (28 in case of conclusion of a PhD) that do not qualify as dependents and earn a yearly gross income equal or lower than EUR 29,179. The taxable income is reduced by 30% of the income earned in the two first years; 20% in the two following years; 10% in the last year (ceilings apply).

Special Expatriate Tax Regime

Non-residents are liable to income tax only on Portuguese-source income, including remuneration borne by a Portuguese company or permanent establishment. They are taxed at a flat rate of 25% on their taxable remuneration.

A taxpayer who has become tax-resident in Portugal for a certain year and has not been taxed as resident in Portugal for any of the previous five years may apply for the special tax regime for "non-habitual tax residents". Non-habitual residents are taxable on worldwide income, but may be exempt from tax on certain foreign-source income. In general terms, non-habitual residents are taxed at a flat rate of 20% in respect of employment income (Category A) and self-employment income (Category B) arising from high-value activities of a scientific, artistic, or technical nature. Entrants in the regime that became Portuguese tax resident as from 1 April 2020 are liable to a 10% tax rate on pension income. For further information, click here.

A tax exemption also applies to outbound expatriates, who are resident individuals assigned abroad for a period longer than 90 days.
Foreign residents may be exempt from social security in Portugal if they contribute to a compulsory social security system in a European Union country or a country that has a bilateral social security agreement with Portugal.

Capital Tax Rate

In general, capital gains are subject to a flat rate of 28%. Gains arising on the sale of shares held on micro and small companies not listed in the stock exchange are taxed only on 50% of their value. Capital gains earned by non-residents that are not borne by a permanent establishment in Portugal are fully taxable at a flat rate of 28%. 50% of capital gains arising from the sale of real estate by tax residents in Portugal is taxed at the marginal rates varying between 14.5% and 48% (exemptions apply for primary residencies).

For gifts and inheritances, a 10% stamp duty is imposed, unless the heir is the spouse, descendant or ancestor of the donor/deceased, which are exempted. Donation of property is taxed under the stamp tax at 0.8%.

A municipal property tax is charged on the registered value of real estate (Imposto Municipal sobre Imóveis or IMI - 0.3% to 0.45% for urban real estate, 0.8% for rural real estate, and 7.5% for property owners residing in a tax heaven). The tax is owed by the real estate owner, the usufructuary, or the holder of the surface right of a real estate unit with reference to 31 December of the relevant financial year.

Employees contribute 11% of the gross salary for social security. The contributions rate for self-employees is 21.4%.

Portugal does not levy net wealth or net worth tax.

National Regulation and International Agreements

Equity of Judgments

Equal Treatment of Nationals and Foreigners

Yes

The Language of Justice

Portuguese and Mirandese in a region of the north-east of the country.

Recourse to an Interpreter

Possible

Legal Similarities

Portuguese law has various sources, including : the Constitution, laws passed by Parliament, ministerial decrees and orders, international conventions and treaties ratified by Portugal. As a member of the European Union, Portuguese national law also conforms to the requirements of Community legislation.

As the French legal model inspired the Portuguese model, there are considerable similarities between the two. In addition to France, there are parallels with other countries whose law has also come from the Roman system of law.

The Different Legal Codes

Checking National Laws Online

Diário Republica (Official Gazette)

Other Useful Resources

Ministry of Justice
Center for legal studies
Deco, Law portal.

Country Guides

Lexmundi, Guide to doing business in Portugal: legal system.

The Jurisdictions

Court Officials

Advogado (Lawyer)

The lawyer's first role is to inform his clients of their rights and obligations. He can then represent them in court and speak for the defense.

Perito Judicial (Legal expert)

A judge appoints a duly authorized professional who will review information in order to clarify certain elements of a case.

Escrivão (Clerk of the Court)

During the procedure, he will write down all exchanges, declarations and observations.

Oficial de Justiça (Bailiff)

He is a legal officer responsible for serving legal process and for enforcing court decisions.

Juiz (Judge)

He is the one who decides if the law has been broken or not, as well as the penalties which ensue.

Procurador da República (State prosecutor)

He is a magistrate who represents the Prosecution in the court of 1st instance.

Customs Procedures

Import Procedures

The following documents must be presented to the Customs office:

1. a brief declaration (air or maritime manifest) of the goods.
2. a common law declaration (SAD, single administrative document), as well as the accompanying documents to allow their clearance. The SAD form can be obtained from Chambers of Commerce or an authorised printer. A computerised Customs clearance platform (SOFI: International freight computer system) can be accessed in Customs offices or in some Chambers of Commerce.
3. Commercial invoice
4. Packing list
5. Certificate of origine
6. Insurance certificate (where applicable)

In the case of deliveries and purchases within the European Union, the declaration of exchange of goods (DEB) or Intrastat declaration must be sent to the Customs service.
All companies established outside of the EU are required to have an Economic Operator Registration and Identification (EORI) number if they wish to lodge a customs declaration or an Entry/Exit Summary declaration.

As part of the 'SAFE' standards advocated by the World Customs Organisation (WCO), the European Union has set up a new system of import controls, the 'Import Control System' (ICS), which aims to secure the flow of goods at the time of their entry into the customs territory of the EU. This control system, part of the Community Programme eCustoms, has been in effect since January 1, 2011. Since then, operators are required to pass an Entry Summary Declaration (ENS) to the customs of the country of entry, prior to the introduction of goods into the customs territory of the European Union.

The Modernised Customs Code (MCC) of the European Union simplifies various procedures such as: introducing a paperless environment, centralised clearance and more. For more information, check the EU’s Customs website. Further details are available on the website of Portuguese customs (in Portuguese).

Specific Import Procedures

As a member of the European Union, goods entering Portugal may be placed under any of the following treatments:

 

Transit, which comprises external and internal transit:

• External transit: non-Union goods may be moved from one point to another within the customs territory of the EU without being subject to import duties, other charges related to the import of the goods (i.e. internal taxes) and commercial policy measures. Moving goods to another EU Member State means the customs clearance procedures are transferred to the customs office of destination.
• Internal transit: Union goods may be moved from one point to another within the customs territory of the EU without any change to their customs status. This includes transporting goods through another territory that is outside the EU customs territory.

Storage, which comprises customs warehousing and free zones:

• Customs warehousing: non-Union goods may be stored in premises or any other location authorised by the customs authorities and under customs supervision ('customs warehouses') without being subject to import duties, other charges related to the import of the goods and commercial policy measures.
• Free zones: Member States may designate parts of the customs territory of the Union as free zones. They are special areas within the customs territory of the Union where goods can be introduced free of import duties, other charges (i.e. internal taxes) and commercial policy measures, until they are either assigned another approved customs procedure or re-exported. Goods may also undergo simple operations such as processing and re-packing.

Specific use, which comprises temporary admission and end-use:

• Temporary admission: Non-Union goods can enter the EU without the payment of import duties, provided they are intended for re-export without being changed. The maximum period for temporary import is two years.
• End-use: goods may be released for free circulation under a duty exemption or at a reduced rate of duty on account of their specific use.

Processing, which comprises inward and outward processing:

• Inward processing: Goods can be imported into the EU, without being subject to duties, taxes and formalities, to be processed under customs control and then re-exported. If the finished products are ultimately not exported, they become subject to the applicable duties and formalities.
• Outward processing: Union goods may be temporarily exported from the customs territory of the Union for processing purposes. The processed goods may be released for free circulation with total or partial relief from import duties.

The EU framework sets forth several regulations that can have an impact on import procedures: Waste Electrical and Electronic Equipment Directive (WEEE Directive), the ROHS Directive, Cosmetics Regulation, and Registration, Evaluation and Authorisation of Chemicals (REACH), agricultural documentation and sanitary certificates (Fisheries).

Importing Samples

For the import, export and re-export of commercial samples, the ATA (Temporary Admission) carnet can be used. Temporary entry can be allowed for goods in transit, for manufacturing, for temporary storage in bonded warehouses or for temporary importation. Generally, temporary entry of goods requires the deposit of a guarantee for import duties and VAT.
It must be written on the product that it is a free sample and that it may not be sold. Otherwise, in order for samples of commercial value to enter Portugal duty- and tax-free, a bond or deposit of the total amount of duties and taxes must be arranged. Samples must be re-exported within one year if the deposit is to be recouped. Samples with no intended commercial value enter Portugal free of duties and taxes. 'No commercial value' should be written on the appropriate shipping documents.

Customs Duties and Taxes on Imports

Customs threshold (from which tariffs are required)

Customs duties are not charged if the total value of the goods does not exceed EUR 150 (excluding shipping charges and insurance).

Average Customs Duty (Excluding Agricultural Products)

Operations carried out within the EEA are duty-free.
The Common Customs Tariff of the European Union applies to goods originating outside Europe. Generally the duty is relatively low, ranging from 5.0% to 14% on industrial goods. However, many products have reduced duties or no duties at all by virtue of trade agreements (according to Eurostat, around 70% of the imports that enter the EU do so at zero tariff).
Agricultural products imported from outside the EU are subject to the Common Agricultural Policy (CAP), with custom duties on these items being supplemented with a system of variable levies or other charges.

For more information, consult the Taxation and Customs Guide published by the European Commission.

Products Having a Higher Customs Tariff

The sectors of fabrics and items of clothing (high duties and quotas) and foodstuffs (preferential treatment and many tariff quotas, CAP) still experience protection measures. According to the recently published 2019 EU Trade Policy Review (WTO), the sector with the highest average tariffs is the dairy sector (32.3%), followed by sugar and confectionery (27.0%), meat (19.0%), cereals and preparations (17.2%) and fruit and vegetables (13.0%). Concerning non-agricultural products, fish and fishery products (11.8% on simple average) and clothing (11.6%) are the sectors with the highest tariff protection.

More information can be found in the WTO Tariff profile of the EU.

Preferential Rates

In the framework of several agreements that the European Community has concluded with third countries, as well as in the framework of autonomous preferential arrangements for some beneficiary countries, tariff concessions are provided for a pre-determined volume of goods. These tariff concessions are called "preferential tariff quotas". Click here to visualize preferential agreements by country.

Customs Classification

The Combined Nomenclature of the European Union integrates the HS nomenclature and supplements it with its own subheadings with an eight-digit code number and its own Legal Notes created for Community purposes. In order to get exhaustive regulations and custom tariffs rates regarding their products, exporters shall refer to the TARIC code and its database, which includes all applicable customs duties and all customs trade policy measures for all goods.

Method of Calculation of Duties

Ad Valorem on the CIF value of the imports. Consult the calculation of customs duties on the European Union website.

Method of Payment of Customs Duties

Custom duties are payable in cash or via other payment instrument (by cheque, by cash money order, by bank transfer); an extension of the time limit for payment may be granted through systems of collection credit or duty credit.

Import Taxes (Excluding Consumer Taxes)

Products imported from outside the EU are subject to VAT.
Excise taxes are levied on a limited number of products: gasoline, diesel fuel, spirits, beer, wine, bottled water, cider, tobacco, motor vehicles, liquid petroleum gas. The excise rates vary depending on the products. The tax is imposed whether the goods are manufactured in the country or imported from EU or non-EU countries.
Alcoholic beverages
Energy products and electricity
Tobacco products

Labeling and Packaging Rules

Packaging

It must conform to European legislation on the prevention of health risks to consumers and the protection of the environment, especially as regards waste treatment. Packaging in wood or vegetable matter must be subjected to a phytosanitary inspection. Any name symbols and marks relating to the product must be found on the exterior of the packaging.
For further information, consult the summary of European legislation concerning this.

Languages Permitted on Packaging and Labeling

All products retailed on the Portuguese market must be accompanied by an information leaflet in Portuguese. Portuguese or international law must have authorized any foreign words or abbreviations. The writing must be clear and non-promotional.

Unit of Measurement

The metric system is obligatory.

Mark of Origin "Made In"

It is compulsory and controlled by Customs.

Labeling Requirements

Age of consumers for products such as toys, alcoholic beverages, colorings, etc. Basic requirements include the origin of the product, name/trademarks, composition, usage instructions, required dates.

Specific Regulations

European legislation provides for specific labeling rules for certain products such as foodstuffs, household equipment, sportswear, textiles, pharmaceuticals, detergents, tobacco, fertilizers, alcoholic beverages and foodstuffs containing preservatives and colorings, dangerous or toxic products, etc.
Labeling of seeds from genetically modified varieties or products containing GMOs is compulsory; the agents of the plant protection services are authorized to make random checks on the conformity of batches of seeds and imported plants, the agents from the Competition and Fraud squad do the same for products suitable for human consumption.

Distribution Network

E-commerce

Internet access

According to the latest information available, 66% of the Portuguese population, about 7 million people, use the internet. Internet penetration in Portugal is currently at 63.2% and should reach 66.6% by 2021. Smartphone penetration is 55.7% and is projected to grow to 63.5% by 2021. 90% of online sales in Portugal were made via computer, while 4% of purchases were made via tablet, and 4% via smartphone. The most popular search engines are Google (91.63%), Bing! (2.71%), Yahoo! (1.94%), Baidu (1.29%), Yandex Ru (0.63%), Shenma (0.62%).

E-commerce market

E-commerce in Portugal is estimated to have increased by over 12% in 2017, and total online sales of goods and services in the country are estimated to reach EUR 4.73 billion by the end of 2018. This represents a significant growth compared to the 10.52% increase of last year. One in ten Portuguese sites recorded a 100% growth in the number of customers, according to data from the Quarterly Barometer ACEPI/Netsonda. In 2018, user penetration was 62.8%, and is expected to hit 66.7% by 2022. Total e-commerce revenue across all product categories is US$ 2.97 billion, and is expected to reach US$ 4.6 billion by 2021. Toys, hobby & DIY is currently the leading product category, accounting for US$ 808 million market share. Fashion is a close second, accounting for US$ 801 million. By 2021, Fashion will lead the charge, valued at US$ 1.3 billion. Toys, hobby & DIY is also expected to grow, reaching US$ 1.2 billion.

E-commerce sales and customers

Out of 7 million Portuguese internet users, 3.2 million shop online, with an additional 1.67 million new users expected to be shopping online by 2021. The average online shopper spends US$ 1,058 per year. In 2017, about two in three Portuguese shopped domestically and cross-border, while almost one in four shopped only cross-border. In 2017, males outnumbered female online shoppers. Males between the ages of 25-34 account for the biggest market share, representing 1.1 million online shoppers. The second biggest category of online shoppers is women aged between 16-24, accounting for 800,000 online shoppers. In 2021, the ratio of male to female shoppers is expected to remain the same across most age groups. Men aged 25-34 will remain the biggest group of online shoppers. The most popular segments in e-commerce are clothing, shoes and lifestyle, home and garden, I.T, Media and entertainment, telecom, health and beauty, household electronics, toys, food, consumer electronics, and sports and recreation. 48% of online shoppers use prepaid cards, 40% use bank transfer, 9% use credit cards and 2% select eWallets as their preferred method of payment.

Social media

Portugal’s Social Media Penetration is 48% of the population, and is expected to reach 52% by 2021. There are 6.10 million active social media users in Portugal. Out of all Portuguese Facebook users, 85% access it via mobile, and 72% use Facebook every day. The most popular networks are Facebook (74.57%), Pinterest (7.37%), Youtube (6.46%), Twitter (5.25%), Tumblr (2.14%) and Instagram (1.78%).

Direct Selling

Evolution of the Sector

The World Federation of Direct Selling Associations (WFDSA) 2017 report shows retail direct selling in Portugal fell 6.6%, was valued at USD 251 million, and involved 200,600 independent representatives. Another 2017 WFDSA report divides retail sales as follows: cosmetics and health care (53%); wellness (37%); and clothing and accessories (8%).

Euromonitor International notes direct selling enrollment increases despite falling unemployment, which involves younger people joining the industry in pursuit of greater flexibility and independence. Oriflame, Avon, Yves Rocher, and Mary Kay have dominated the beauty and personal care direct selling segment for years and have resisted competition from stores such as Kiko Milano by launching new products, hiring more consultants, and investing in both promotional activities and partnerships. International companies dominate direct selling in Portugal. Mary Kay had the strongest value sales growth while Vorwerk led direct selling in 2017 with its Bimby brand.

SELDIA and Direct Selling Europe promote best practices in the industry.

Commercial Intermediaries

Trading Companies

 

• Type of Organization

Being listed with trading groups is an obligatory step for breaking into the hypermarket sales market. The cost of getting onto the listing can be substantial and promotional operations are at the supplier's expense. The distributors do not negotiate with foreign suppliers, making it necessary to go through a Portuguese intermediary (a non-manufacturing importer, a manufacturer of similar products or a service company). Trading companies also supply the markets of some Portuguese-speaking African countries, and Portugal thus serves as a logistic and commercial platform.

• Main Actors

Five buying groups account for 90% of supplier purchases: Sonae, which recently bought Carrefour Portugal, and increased its weight in local distribution, Auchan, Jerónimo Martins and Intermarché. For a department store listing, there is also El Corte Inglés in Lisbon and Porto.

Wholesalers

 

• Type of Organization

There are two main types of company:
- companies specializing in a range of products: meat, dairy products (for example Sogenave) or wine (Vinalda)
- national cooperatives, which serve retailers all over the country (for example Grupac, a wholesalers' group for foodstuffs, CNR).

• Main Actors

Sogenave
CNR (confederaçao nacional Retalho)
GCT-Gestão Comercio total
Ramazzotti

Useful Resources

Portuguese Association of Distribution Companies (APED)
Portuguese Logistics Association (APLOG) (in Portuguese)
Distribuiçao Hoje (Magazine about distribution)

Using a Commercial Agent

The Advantages

More realistic for a small or medium enterprise as concerns marketing strategy. Most often they are exclusive agents for the whole country.They are also often distributors/importers for other ranges of products. The agent is quite rare and limited to a few sectors such as chemical products, industrial products and high-tech components, and some foodstuffs (dried fruit, some food additives).

Where to Be Vigilant

The agent should be chosen for his motivation, his interest in the product, his references and the range of products he is in charge of. Supplementary commercial investments will be necessary to support the agent's work (catalogs, samples of products, etc.). One needs a local representative with good contacts in order to be aware of future contracts and participate in tenders. Many projects are EU-funded, so an EU partner is desirable (and often fundamental) when bidding.

Elements of Motivation

The rate of commission is an important element for motivation. Recourse to a system of contests and competition between agents is sometimes practised and supervision and close contact may be necessary for a good follow-up of the agent's activity.

The Average Amount of Commission

An agent on commission is paid according to the turnover he achieves.

Breach of Contract

The termination of an agency contract is carried out with one month's notice during the first year, two months' notice the second year, and three months' notice the third and following years. The agent is entitled to compensation if he is not the cause of the breach of contract. Council Directive 86/653/EEC establishes certain minimum standards of protection for self-employed commercial agents who sell or purchase goods on behalf of their principals.

Finding a Commercial Agent

CCI Porto, Porto Commercial Association
Alibaba

Setting Up a Commercial Unit

The Advantages

Being present on the market, controlling the networks, lower labor costs.

Where to Be Vigilant

The procedures for setting up a company were considerably simplified. However, some processes continue to be rather slow and demanding, such as getting authorizations from town halls or municipal services or the follow up of work (if it is necessary to build or fit out installations).

Different Possible Forms of Settlement

 

• A Representative Office

A representative office may be necessary to obtain market, or other, data and provide promotional support. However, a representative office cannot be involved in commercial transactions or generate income, and so it cannot manage orders directly.

• A Branch Office

A branch office can take and fill orders and carry out a marketing or advertising program, recruit the sales force and carry out promotional activities. Setting up a branch office is considered a direct investment and must be declared to the Portuguese Ministry of Finance.

• A Company

Setting up a subsidiary takes time and is expensive. However, it offers a better guarantee of protection for the registered trade mark, of obtaining credit and of breaking into the market. The Portuguese Ministry of the Economy has created centers for setting up companies in order to shorten the process. For further information, visit the Empresa Na Hora website.

Franchising

Evolution of the Sector

Overall, the economic climate in Portugal is open to franchises, especially for new and innovative concepts. The outlook for the franchise sector continues to be fairly positive, mainly due to the number of outlets and shopping malls in the country. There are over 500 franchises operating in the market and the number of franchised units is estimated to be around 11,300. Local franchisors represent 53% of the total market share, followed by Spain with 17% and the U.S. with 9% (representing 44 brands). Portugal continues to offer opportunities for expansion and the market still has room for new, internationally known franchising concepts. According to a report by the Portuguese Franchising Association, although in 2018 there was a decrease in the number of brands operating in franchising in Portugal (528 in 2018 against 610 one year earlier), the weight of franchising in the country GDP rose significantly - from 2.84% to 3.96% - with a total turnover of just above EUR 8 billion. Such report confirms that the services sector holds 57.7% of investors' preference, with services for individuals occupying 43.6%. The services sector is followed by commerce (29%) and restaurants (13.3%).
 
There are a number of laws that govern the operation of franchises within the EU; however, the potential franchiser should take care to look not only at the EU regulations, but also at the Portuguese laws concerning franchising. There is no domestic legislation that specifically regulates franchising alone. However, franchising is subject to the provisions applicable to general contracts, which are contained in the Portuguese Civil Code 1967 (Código Civil). Competition laws are also applicable to the parties to a franchising contract.

Some Big Franchises

List of the largest franchises

For Further Information

Franchising portal
ANJE, National Association of young businessmen
APF, Portuguese Franchising Association

Finding Assistance

Export Trading Companies

Cavex, Agrifood, fur trade, industrial equipment, wood, products for the public buildings and works sector, etc.
Azinor, Public buildings and works, pharmaceuticals, food, clothes, etc., a very wide spectrum of activity
Vinalda, Wines and spirits

Recommended Resource

Pedro Guerra
Campo grande, 46 - 8º esq
1700-093 Lisboa
Portugal
Tél : 00.351.210133542
Email :pedrorodguerra@gmail.com
Activities :
- consultant in foreign trade
- training in Portuguese, as a foreign language and business language, marketing
- translator Portuguese-French and French-Portuguese (Diploma of the Chamber of Commerce and Industry of Paris)

Portugal Trade Portal

Type of Production

Industry represents 18.9% of GDP (World Bank, 2019). The new information and communication technologies (NICT), pharmaceutical, automobile, biotechnology and mold  industries occupy an important place in Portugal's industrial landscape.

Type of Manufacturers

Original Equipment Manufacturers

OEMs in Portugal are generally pharmaceutical laboratories, some textile and top-of-the-range shoe companies.

Subcontractors

For some years now, Portugal has been a country with many opportunities for subcontracting because of its geographical proximity and low labor cost. The association of the metallurgical and metalomechanical sector has even created a service: "the subcontracting exchange". There are still opportunities in the textile and furniture sectors.

Useful Resources

Marklines

Business Directories

Multi-sector Directories

Colist - Portugal business directory
Diretorio - Portugal business directory
Emlista - Portuguese business directory
Expat.com - Portugal business directory
Express Business Directory - Portugal business directory
ezilon Europe - Portugal business directory
Portoxxi - Directory of companies in Porto
The Yellow Pages - Find a business in Portugal

Marketplaces

Marketplaces incorporated in the country

pmelink.pt
Portal Informar
PortugalShoes.com

Marketplaces present on the continent

Adform
Agromaquinaria
Allegro
Auctelia
Bol.com
Cargoclix
CargoSmart
Cdiscount
Conrad
delcampe.net

Fairs and Trade Shows

Upcoming Trade Shows

NAUTICAMPO

February 1st, 2023

INTERDECORAÇÃO

February 1st, 2023

MOD’TISSIMO

February 1st, 2023

NAUTICAMPO

February 8th, 2023

EXPOFARMA

February 9th, 2023

MOD’TISSIMO

February 15th, 2023

QUALIFICA

March 1st, 2023

TECNIPÃO - FIL

March 1st, 2023

BTL

March 1st, 2023

SIBAB PORTUGAL

March 1st, 2023

Other Useful Resources

Trade Agencies and Their Representations Abroad

Portuguese Chamber of Commerce
AICEP International network

 

 

Finding Assistance

Recommended Resource

Pedro Guerra
Campo grande, 46 - 8º esq
1700-093 Lisboa
Portugal
Tél : 00.351.210133542
Email :pedrorodguerra@gmail.com
Activities :
- consultant in foreign trade
- training in Portuguese, as a foreign language and business language, marketing
- translator Portuguese-French and French-Portuguese (Diploma of the Chamber of Commerce and Industry of Paris)

Main Useful Means of Transport

According to the latest data provided by the Instituto Nacional de Estatística (Estatísticas dos Transportes e Comunicações 2019), as of December 31, 2019, the Portuguese railway network was 3,620.7 km in length. The railway stock was comprised of 377 traction vehicles, 2,684 wagons and 1,008 vehicles for the transport of passengers. In 2019, goods moved by railway transport (9.7 million tonnes) registered a variation of -8.4%, of which 7.4 million tonnes of goods were moved in national traffic.
The results of the Road Goods Transport Survey (ITRM) for the year 2019 showed a decrease of 2.2% in the weight of goods transported by road to 154.4 million tonnes.
The movement of goods in national seaports stood at 85.3 million tonnes (of which 72.7 million tonnes in international traffic), decreasing by 5.6% y-o-y. Sines handled 38.9 million tonnes and represented 45.6% of the national total, followed by Leixões (21.0% of the total) and Lisbon (12.3%).
Concerning airports, there was a 12% increase in freight movement, reaching a total of 193.0 thousand tonnes in 2019.

By Sea

Ports

Port of Lisbon
Port of Leixões

Transport Professionals

Port Line
Transinsular

Government Transport Organisations

Ministry of Planning and Infrastructure

By Air

Airports

Airports of Portugal

Transport Professionals

TAP AIR PORTUGAL
SATA Airlines

Government Transport Organisations

Ministry of Planning and Infrastructure

By Road

Transport Professionals

Grupo Luís Simões (en anglais)
European Road Hauliers Organization

Government Transport Organisations

Ministry of Planning and Infrastructure

By Rail

Transport Professionals

Comboios de Portugal

Government Transport Organisations

Trains in Portugal

The Sociedade por quotas de responsabilidade limitada (Lda): Limited Liability Company

Number of partners: Two partners minimum. There may be one partner only in the case of a Single Person Private Limited Liability company (SUQ).
Capital (max/min): Minimum EUR 1.
Shareholders and liability: Liability is limited to the amount of capital contributed.

The Sociedade anonima de responsabilidade limidada (SA): Public Limited Company

Number of partners: Five partners minimum; they may be foreigners and non-residents.
Capital (max/min): 50,000 EUR minimum, entirely taken up, with the obligation to release at least 30%.
Shareholders and liability: Liability is limited to the amount of capital contributed.

The Sociedade em nome colectivo: General Partnership

Number of partners: Two partners minimum.
Capital (max/min): No minimum share capital.
Shareholders and liability: Liability is joint and indefinite regarding third parties.

The Sociedade em comandita: Limited Joint-stock Partnership

Number of partners: Two partners minimum, with active partners and silent partners.
Capital (max/min): No minimum share capital.
Shareholders and liability: Liability is indefinite for active partners, and limited to the amount of capital contributed for silent partners.

Business Directories

Financial Information Directories

Dun & Bradstreet - Worldwide directory with financial information on businesses
Informa - Portuguese business directory
Kompass - Portugal Business directory

Professional Associations

General Professional Associations

IAPMEI - Government Institution for SMEs Support
AEP - Business Association of Portugal
AIP - Portuguese Industrial Association

Business Setup Procedures

The Competent Organisation

ePortugal web portal

For Further Information

Consult Doing Business Website, to learn about procedures to start a Business in Portugal
Trade Register, in Portuguese

Recovery Procedures

Principle

Within the framework of the safeguard scheme, two legal decisions are generally made:
- being put into receivership, a state where payment stops, it is impossible to face the liabilities due with the current assets.
- compulsory liquidation, a persistent state where payment stops and receivership is manifestly impossible.

Minimum Debt-to-Capital Ratio Triggering Liquidation

No minimum

Reorganization and Rehabilitation Laws

Company insolvency and recovery Code

For Further Statistics

INE
Ministry of Labour and Social Security

For Further Information About the Labour Market

CES, The Economic and Social Council

Opening Hours

 

• Legal Weekly Duration

39 hours

• Maximum Duration

Maximum duration: 10 hours a day and 48 hours a week.

• Night Hours

Between 9 pm and 6 am.

Working Rest Day

Sunday

Paid Annual Vacation

22 working days a year, +3 for regular attendance (no unjustified absences).

Retirement Age

65

Child Labour and Minimum Age For Employment

16

Informal Labour Market

Undeclared work is above all made up of only partially declared hours of work or undeclared overtime.
This is especially in Public Buildings and Works, where the control of workmen's wages (particularly foreigners) is inaccurate.

Pay

Minimum Wage

EUR 705 per month if based on 14 payments in a year, or EUR 823 based on 12 payments (source: Eurostat, Government of Portugal, 2022)

Average Wage

Gross average monthly wage: EUR 1,250.75 (source: INE-Statistics Portugal, 2020)

Other Forms of Pay

• Pay For Overtime

Under modification.

• Pay For Rest Days Worked

According to collective agreements.

• Pay For Night Hours

Under modification.

• Pay For Overtime at Night

Under modification.

Social Security Costs

The Areas Covered

Health insurance (medical care, maternity, disability, death), retirement pensions, family allowances, unemployment benefits

Contributions

Contributions Paid By the Employer: 23.75% on the monthly gross remuneration of employees, and insurance premium to cover occupational accidents at a rate varying according to risks.
Contributions Paid By the Employee: 11% on the monthly gross remuneration of employees, and insurance premium to cover occupational accidents at a rate varying according to risks.

Competent Organization

Segurança Social

Recruitment

Method of Recruitment

More and more applications are being made via Internet or the press. Recruitment in Portugal is mainly carried out by inviting candidates for a face-to-face interview.

Recruitment Agencies

The public institution is the IEFP.
There are several recruitment companies: Egor, Psicoteste, Hays.

Recruitment Websites

Stepstone
Michael Page
Ofertas Emprego

The Contract

Dispute Settlement

Social Partners

Social Dialogue and Involvement of Social Partners

There are two major union confederations: the CGTP (very close to the Communist Party) which is typically very critical of and eager to challenge government measures, and the UGT (close to the Socialist Party and the Social-Democrats), a more moderate group. While the UGT also criticises government measures, it often manages to come to a consensus with the government. Negotiations between Employers' Confederations, the Government and Union Confederations usually take place at the Conselho Económico e Social. These discussions take place systematically at the beginning of each year, but also when important dossiers about lab or law are discussed. In recent years, there have been many strikes and demonstrations against government austerity measures and economic policies.

Unionisation Rate

18.4%

Unions

CGTP
UGT

Regulation Bodies

Ministry of Agriculture
Confederation of Portuguese Agricultural Cooperatives (CONFAGRI)
Portuguese Agricultural Federation
Ministry of Labour

FDI STOCKS BY COUNTRY AND INDUSTRY

Source: OECD Statistics - Latest available data.

Strong Points

Portugal was one of the countries which was the most strongly hit by the economic crisis of the late 2000s. Thanks to a policy of rigor and the implementation of reforms of the banking sector, of pensions and of the labour market, the country has since regained an interesting economic competitiveness and has begun a deep diversification of its exports (both sectoral and geographical). Its economy has stabilised, with a GDP growth of 4% in 2022 (IMF forecasts) based on its main strengths:

• A skilled and often multilingual workforce at a significantly lower cost than other Western European countries
• A system promoting investment in innovation and R&D, which has enabled the country to attract new FDI, essential to its development. The large number of multinationals from all sectors testifies to it. 
• Its strategic international relations with Europe, Africa and America, in addition to its membership of the European Union, allow Portugal to maintain close ties with its former colonies such as Brazil, Mozambique, Macao and Angola, and can serve as a gateway to other Portuguese-speaking markets
• Early sectoral and geographical diversification of exports
• Political stability and fluid governance
• A good business environment (the country was ranked 39th on the World Bank's Doing Business 2020 report.

Weak Points

The main weaknesses of Portugal's economy include:

• High unemployment rate
• Economy is weakened by high levels of private and public debt
• Small population
• Low productivity
• Underdeveloped manufacturing sector
• Rigidity of labour law.

Government Measures to Motivate or Restrict FDI

In recent years, 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. The Government adopted the 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 (over EUR 25 million).

To improve the business climate, the Government has created the "Simplex" website, an information repository containing all measures taken to reduce bureaucracy, and the 'Empresa na Hora' initiative (a company in one hour), which allows companies to incorporate in less than an hour.

Bilateral Investment Conventions Signed By Portugal

To see the list of investment treaties signed by Portugal, consult UNCTAD's International Investment Agreements Navigator.

International Controversies Registered By UNCTAD

Refer to UNCTAD's Investment Dispute Settlement Navigator.

Organizations Offering Their Assistance in Case of Disagreement

ICSID, International Center for Settlement of Investment Disputes
ICCWBO, International Court of Arbitration, International Chamber of Commerce

Member of the Multilateral Investment Guarantee Agency

Portugal is a signatory of the MIGA convention.

Categories of Restaurant

 

• "Tasca"

Local bistrots/eating houses much appreciated by workers in a hurry, about 7 EUR.

• "Pastelarias "and "cafés"

Pastry shops and cafés with fast meals at lunchtime. About 7 EUR.

• Economical restaurants

Typical, regional cuisine, about 12 EUR.

• "Cervejarias"

Brasseries usually with seafood menus. The prices may therefore vary a lot.

• "Enotecas"

Wine bars, offering wine tasting and menus devised around wines.

• Medium-priced restaurants

Medium-priced restaurants, with Portuguese or international cuisine, between 15 and 30 EUR.

• Smart restaurants

Sophisticated Portuguese or international cuisine, oveCucina tipica regionale, circa 12 euro.r 40 EUR.

Rules For Eating Out

Prices displayed in restaurants and cafés have taxes and service included. A tip is not obligatory, but it is usual to leave some money on the table after paying the bill (between 5% and 10% of the bill).

Price Indications

Food Specialties

Some Portuguese specialities include: bacalhau (salt cod that is often boiled, grilled, put into fritters or served in a gratin), arroz de marisco (rice with seafood), caldeierada (fish soup) and pastel de nata (custard in puff pastry).

Drinks

Portugal is traditionally a wine producing country. To see the variety of different wines produced, visit the website of the Wines of Portugal.

Dietary Restrictions

No restrictions.

Table Manners

Before starting, you wish people « bom apetite ». If you are invited to dinner with a Portuguese family, wait to be shown your place before sitting down and avoid eating with just your fork.

Means of Transport Recommended in Town

Recommendation

Lisbon and Porto each have their own public metro networks (that extend into the suburbs) and their own bus networks. The metro south of the Tagus is private. The Sul do Tejo (MTS) Metro was recently completed and serves the towns situated on Lisbon's south bank.

Other towns have their own municipal transport systems (including buses and/or trams).

When arriving at the Lisbon airport, there are taxi 'vouchers' and a table showing journeys and their respective costs located at the tourist counter. It is safest to take taxis parked near the departure zone to reduce risk of paying more. Once you arrive into town, there are not usually problems of this sort. There is an extra fee for baggage placed in the trunk (EUR 1.6).

Maps of Urban Networks

Map of Porto Bus Lines
Lisbon Metro Map
Porto Metro Map

Urban Transport Agencies

Lisbon buses and funiculars
Buses in greater Porto
Lisbon metro ( in portugese)
Porto metro

Find an Itinerary

Finding an itinerary in Lisbon
Finding an itinerary in Porto
Finding a metro itinerary in Lisbon

Taxi Companies

Autocoope, Lisbon taxis
Raditaxis, Porto taxis

Transportation From Airport to City Centre:

Means of Transport Recommended in the Rest of the Country

Recommendation

North of the Tagus: Although there is still no high speed train for the journey between Lisbon and Braga (including Porto), the train remains the most convenient and fastest means of transport. Train tickets can be bought at automatic ticket machines.

South of the Tagus: Especially for the Algarve, the bus has been the means of transport favoured by most. However, since 2005, the railway has grown to cross the Tagus and ensures good links with the south of the country.

Rail Companies

C.P. Portuguese Railways

Airlines

You Can Consult The EU Air Safety List. Look Also at the rating of the United States Federal Aviation Administration (FAA).

Travelling By Yourself

Recommendation

On the IP5, from Aveiro to Vilar Formoso, it is compulsory to drive with headlights on (even in the daytime). Compliance checks are frequently carried out and offenders are liable to be fined. The roads are generally in good condition, but you should be careful given the number of road accidents (higher than the European average). The Portuguese have been known to drive at high speeds and road signs are often missing or few and far between. Some roads have speed minimums in addition to speed limits and many have speed cameras installed.

Hiring a car is easy, especially at airports.

Driver's License

The Community driver's license is recognized in Portugal. Other licenses are also recognized if they are accompanied by an official translation. After one year's residence in Portugal, the foreign resident must exchange his license for a Portuguese license.

Conditions For Renting a Vehicle

The driver must be over 21 and have had his driver's license for more than a year.

Rental Agencies

Hertz
Europcar

Tolls or Taxes

You have to pay on motorways, at the toll booth on entering or leaving the motorway. Keep your ticket carefully until you have to pay.

Road Maps

Road map of Portugal
Map of Lisbon
Maps and Itineraries
Via Michelin

Find an Itinerary

Via Michelin
Mappy

Traffic Conditions Online

Estradas de Portugal

Parking Facilities

Parking in town is regulated and you usually have to pay. You pay at a parking meter ("parquimetro") in the street, using coins. Authorized parking places are shown by white markings on the ground.
All towns have parking lots (most often underground), in the town center, or on the outskirts with connections to public transport.

Rules of the Road

Minimum Driving Age

18

Side of the Road For Driving

On the right

Speed Limits

50 km/h in town, 90 km/h on a national road, 100 km/h on main roads and 120 km/h on motorways.

Safety Belts

Obligatory.

Permitted Amount of Alcohol in the Blood

0.5 g/liter of blood or 0.25 mg of alcohol per liter of air breathed out

National Roads Organizations

Estradas de Portugal S.A.
Brisa (private motorways)

Quality of Communications

Means of communication in Portugal are well developed and cover the whole country. On the other hand, using mobile phones or Internet can be difficult in some regions of the center of the country.

Telephone Codes

To Make a Call From Portugal, Dial 00
To Make a Call to in Portugal, Dial +351

Number of Digits of National Telephone Numbers

9 digits : the regional code (2 or 3 digits) + number (respectively 7 or 6 digits). The total number of digits remains invariably 9.

Mobile Telephone Standards

GSM, GPRS, PTT, UMTS, WCDMA, EDGE.

National Mobile Phone Operators

Vodaphone, TMN (Portugal Telecom Group), Optimus (Sonae and France Telecom Group), Phone-IX (Portuguese Post)

Availability of Internet

Internet Suffix

.pt

National Internet Access Providers

Sapo, Netcabo, Clix, Optimus/kanguru, Vodafone

Access in Public Places

Besides cybercafés which are found everywhere, Internet access is available in Town Halls, in large shopping malls, tourist offices, and libraries (free or charged). Wifi access is also available in Lisbon and Porto in parks and public gardens prepared for it. Access is easy even in small towns.

Access in Hotels

In the country's main cities (Lisbon, Porto, Evora, Faro and Coimbra) hotels are already equipped. In the rest of the country, it depends on the category of accommodation. The "pousadas", for example, provide Internet access even when they are out in the countryside.

Different Forms of Tourism

Historical

Traditionally Portugal's main tourist destinations were: Lisbon and the surrounding area (Estoril, Cascais, Arrábida south of the Tagus), Madeira and the Algarve. But local and foreign tourist itineraries have widely diversified in recent years. Portugal is one of the oldest states, with nine centuries of history. Its monuments bear witness to this historic past: the Romanesque cathedrals of Coimbra and Porto, the monasteries of Alcobaça and Batalha from the second part of the Middle Ages, the Tower of Belém, the Monastery of 'Jerónimos' and the Convent of Christ in Tomar from the ‘manueline’ epoch (King Manuel 1, 15th and 16th centuries) or the Palácio Nacional at Mafra from the 17th century.

Cultural

In addition to monuments and castles, some recommendations for cultural tourism include:
- Admiring the cobblestones (especially in Lisbon and the south) and the azulejos which cover the façades of buildings and churches (such as the Madre de Deus Convent or the Palácio Marquês de Fronteira)
- Listening to Fado, the national
- Visiting the valley of the Douro (World Heritage Site);
- And, of course, enjoying some famous port wine.

Nature

There are abundant ways to enjoy the natural beauty of Portugal. Walking on the island of Madeira, along the 'levadas' (canal side walks), the trails in the Serra da Estrela and in the centre of the country are popular options. If one wants to get closer to the water, fishing and water sports are common in the Azores.

Religious

In 2007, the new Basilica at Fatima opened its doors. Believers tend to flock to the Basilica on 13 May and 13 October.

Thermal

Portugal has a wealth of spring waters. Some establishments have been converted into luxury spa and health hotels, while others are being modernised with the help of public funds. For further information consult the Termas de Portugal (sectorial association) website.

Beach

The Algarve Coast is one of the most popular destination for visitors, especially in the summer. That being said, it is very crowded in August and it is recommended to visit other alternatives. Additional quality beaches can be located at: Alentejo (especially the Tróia Peninsula), the island of Porto Santo and the Cascais shoreline. Beaches for surfing include: Ericeira, Guincho and Peniche (all of which are national/international championship venues).

Winter Sports

Due to limited snow accumulation, there is not a strong winter sports tradition. However, the activity is slowly beginning to start up.

Outdoor Activities

Hiking, mountain biking, climbing, mountain climbing, rafting.

Shopping

Portuguese products are rapidly attracting interest among expatriates. Two fine examples are Portuguese wine and cheese. There are more than 30 appellations d'origine (DOC), with wine from Porto receiving the first appellation d'origine in the world. The Viniportugal institution is in charge of distribution. The king of Portuguese cheeses is the 'queijo da serra', a melt-in-the-mouth ewe's milk cheese.

Tourism Organisations

Portuguese Tourist Office
Viniportugal
Douronet
Boa Cama Boa Mesa

Cultural Organizations

Fundação Serralves
Fundação Gulbenkian
CCB

For Further Information

Portuguese Ministry of Culture