Portugal investment opportunities
For high net worth individuals and investors seeking to escape political tensions, make profitable investments, obtain a second EU passport, or improve their quality of life, Portugal offers a compelling option around Portugal investment opportunities.
The country is globally recognized for its competitiveness, innovation, and diverse investment opportunities across all economic sectors. In recent years, Portugal has demonstrated its capabilities beyond manufacturing, trade, and tourism, excelling in the services sector, including IT and Research and Development (R&D), and attracting value-added investments.
Portugal Golden Visa program has proven to be the most popular scheme in Europe, attracting investors with its flexibility, affordability, and numerous benefits. Introduced in 2012, this pioneering investment visa offers a pathway to residency and, eventually, citizenship through various investment options. An investment of €500,000 into a Private Equity or Venture Capital fund within Portugal will secure a Golden Visa residency permit for a family, including dependent children.
While other methods are available, such as creating jobs or making charitable donations, the fund route offers clients the potential for a return on investment. Funds invest in various industries, including, agriculture, early-stage technology startups, healthcare, blockchain, industrial, and ESG-focused companies, among others.
In this article, we will explore the thriving sectors Portugal investment opportunities and delve into the promising opportunities available in each. We will take an in-depth look at various fields that are experiencing rapid growth and discuss how individuals and businesses can capitalize on these opportunities and achieve success.
Most Prosperous Sectors in Portugal Investment Opportunities
Renewable energy: All the fashion
Renewable power sources supplied 61% of Portugal’s electricity in 2023[1], up from 49% a year earlier, hitting a new record thanks to periods of heavy rains, strong winds, and good doses of sunshine. Wind power supplied 25% of the consumption in Portugal, hydropower contributed 23%, photovoltaics accounted for 7%, and biomass for 6%.
The country aims to generate 85% of its annual electricity from renewable sources by 2030 but it already has one of the highest ratios in Europe. Investors have a great potential to invest in private equity funds that focus on the development, construction, and operation of wind, solar, and energy storage assets, as well as the technologies related to these industries.
Portugal: A Rising Star in Europe
Portugal’s rich and unique history has made it one of Europe’s top tourism hotspots. The country has attracted 19% more tourists[2] in 2023, reaching a total of 26.5 million tourists, and contributing to total revenue of €21 billion. Portugal’s tourism sector in 2023 did even better than during pre-pandemic highs, with +7.7% more tourists than in 2019.
Given this dynamic growth, now is an excellent time to invest in Portugal Golden Visa hospitality funds. These funds offer a unique opportunity to capitalize on the booming tourism sector while benefiting from the advantages of the Golden Visa program. Investors can develop a more innovative and entrepreneurial culture in the travel sector by using the potential of the Portuguese tourism and hospitality network.
Technology: Booming sector
The Portuguese National ICT is a highly innovative and dynamic sector, that already represents nearly 10% of the Portuguese GDP[3], reaching almost US$20 billion in total turnover. Lisbon’s tech scene is bustling, and the city is one of Europe’s fastest-growing tech ecosystems, making a name for itself as Europe’s Silicon Valley. Portugal has a very high proportion of STEM graduates and engineering talent at a competitive cost. The city is a growing destination for digital nomads and remote programs. This contributes to Lisbon becoming a hub for entrepreneurial innovation and technology, with tech companies of all sizes and innovative startups setting up offices all over as the tech talent swarms the tech city.
Portugal launched the second phase of the Indústria 4.0 national strategy to digitize the economy with €600 million in total funding over the next two years. In addition, two relevant strategies on Artificial Intelligence and advanced computing were launched, intensely focusing on improving advanced digital skills.
The Portuguese startup ecosystem is still young, but it’s one of the best assets Portugal has, with small-scale but fast-paced and steadily growing companies representing over 1% of the country’s GDP[4]. The country continues to make strides toward attracting and retaining more international talent while forging partnerships with big corporations, making it easier than ever for startups to access markets throughout Europe and beyond. Portugal is the perfect beachhead for European expansion.
Situated at the southwestern tip of Europe, it is the ideal portal for startups looking to enter or expand into the continent, a market of over 500 million people.
As the closest European country to the US, Canada, and Brazil, doing business in Portugal also allows startups to sync with some of the world’s most prominent economies.
This thriving sector presents lucrative opportunities for investors interested in private equity funds focused on technology and the startup ecosystem.
Agriculture: Portugal’s Hidden Gem
Despite its small landmass, Portugal boasts a diverse agricultural sector, thanks to its varied climatic and topographic features. Additionally, the country has a vast exclusive economic zone (EEZ), enabling extensive exploration of marine resources. As of 2023, the Portuguese agricultural industry[5] had a production value of €12.5 billion, with the majority coming from crop farming. Wine and olive oil are two of Portugal’s most popular sub-sectors that are thriving in the country. These initiatives can also benefit from a range of European Union support programs, namely the Recovery and Resilience Plan.
Venture capital is notably lacking in areas such as forest protection and management, irrigation and water optimization, sustainable food, precision agriculture, organic farming, organic livestock production, plant protection and phytochemistry, genetic engineering, and biotechnology. Innovative solutions in these fields are essential to enhance competitiveness in value chains and stimulate economic growth. Therefore, Portugal investment opportunitiesthere are significant investment opportunities in funds focused on these sectors to meet the growing demand for such solutions in the country.
Healthcare and biotech funds
Portugal’s advanced healthcare sector benefits from a highly trained and skilled workforce, fostering the progression of the health value chain across pharmaceuticals, biotechnology, medical services, and e-health companies. The nation hosts a strong R&D and innovation ecosystem, comprising top-tier research institutions, universities, and innovation centers. This dynamic environment serves as a thriving hub for developing cutting-edge technologies and innovative healthcare solutions and driving advancements in medical science and healthcare delivery. Therefore, investors can generate high returns when investing in funds dedicated to healthcare infrastructure, biotech R&D, and medical technology.
Ideal business hub
Portugal has evolved as an ideal business hub for investors from all across the globe, due to its supportive business environment, strategic geographical location, and government incentives. Therefore Investing in funds that focus on these thriving sectors can yield high returns for investors looking to acquire a residency or citizenship in Portugal.
Read more: Exploring Investment Fund Options For Portugal Golden Visa: A Detailed Guide
Sources
[1] https://www.ren.pt/en-gb/media/news/renewable-energy-generation-sets-new-record-in-2023#:~:text=Renewable%20generation%20supplied%2061%25%20of,%25%20and%20biomass%20for%206%25.
[2] https://www.portugalglobal.pt/en/news/portugal-received-19-more-tourists-in-2023/#:~:text=According%20to%20the%20Portugal%20Business,more%20tourists%20than%20in%202019.
[3] https://www.trade.gov/country-commercial-guides/portugal-information-and-communications-technology#:~:text=Overview,National%20Portuguese%20ICT%20Cluster%2C%20TICE.
[4] https://www.trade.gov/country-commercial-guides/portugal-information-and-communications-technology#:~:text=Overview,National%20Portuguese%20ICT%20Cluster%2C%20TICE.
[5] https://www.statista.com/topics/11935/agriculture-in-portugal/