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Foreign investment in Portugal

Portugal possesses an excellent environment for living, working and its labour force is skilled, versatile and adjustable to new technologies.

Investment Incentives:

o Portugal grants investors an incentive;
o The type and amount of the incentive is influenced by factors such as the size of the investment, the contribution of the investment to development areas, creation of jobs, training for employees;
o For investment creating employment of young employees, aged under 30 years, there is an increased salary tax deduction for corporate tax purpose of 50%* of the actual salary expense;
o For companies resident in areas eligible for benefits, the corporate tax is reduced to 15%*; when establishing new entities the corporate tax rate for the first 5 years is 10%*;
o Companies creating permanent jobs in such areas can deduct additional 50%* of social security payments;
o Contracts for NATO infrastructures are exempt* from corporate tax.

*October 2011
co. systems consulting gmbh is not responsible for any changes on the taxes

Measures like the new Labour Law, the tax system and tax incentives, the support infra-structures to economic activity and market regulation are putting the Portuguese business scene in a state of flux and development.

To have in mind

Private sector business is changing from a tradition of autocratic, family-run business conglomerates dominating the commercial landscape, to a much more varied landscape, where the influence of inward investment from major companies is starting to have a pronounced effect.


Portugal is very much a relationship-oriented business culture, small talk and general conversation figure highly in business dealings. Good general topics of conversation would include Portugal, its food and regions, football and general business-oriented issues of interest.
consulting GmbH

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+43 (1) 30 88 133

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