Why international investors keep choosing Portugal

Foreign direct investment in Portugal has climbed from €85.3 billion in 2007 to €213.7 billion at the end of 2025, according to AICEP's Portugalglobal magazine. That stock now equals 69.7% of GDP, up from 48.6% in 2007.

By Advertiser, in Golden Visa · 06 Oct 2026, 07:01 · 0 Comments

Credits: Supplied Image; Author: Portugal Pathways;

Annual FDI flows have followed the same trajectory. They rose from around €2 billion in 2007 to a peak of €13.1 billion in 2024, with fluctuations along the way but a clear upward trend since 2011.

The story behind the numbers is one of changing investor motivation. Portugal was once seen mainly as a cost-competitive base for production. Operating costs still matter, but they no longer explain why multinationals choose the country.

Investment has shifted towards knowledge creation, engineering, technological development and higher-value global functions. Sectors that historically drove export growth, including automotive components, metalworking, electronics and textiles, now sit alongside a broader range of projects built around software development, artificial intelligence teams, health technologies, renewable energy, digital infrastructure, electric mobility, aerospace and space.

Global service centres illustrate the shift well. Centres that once handled back-office functions have increasingly taken on engineering, cybersecurity, data analytics and AI development work. AICEP estimates that the number of global service centres in Portugal has grown at an average annual rate of more than 10% over the past decade.

Recent strategic investments reflect this trajectory too, including projects by Airbus Atlantic, Lufthansa Technik and Start Campus, alongside the earlier industrial consolidation of Volkswagen Autoeuropa and IKEA Industry and the expansion of Siemens' global capabilities based in Portugal.

Portugal now holds a consolidated position among the top ten FDI recipient countries in Europe, according to benchmarking reports including the EY Europe Attractiveness Survey and the FT fDi Report.

"What's striking about these figures is how much the quality of investment has changed alongside the quantity," said Paul Stannard, chairman and founder of Portugal Pathways and the Portugal Investment Owners Club. "Investors used to ask us about labour costs. Now they're asking about talent pools, energy infrastructure and how quickly they can get through licensing. That's a very different conversation, and it's one Portugal is increasingly well placed to have."

This broader investment landscape is also the backdrop against which Portugal's Golden Visa residency-by-investment programme operates. Since the property route was removed in October 2023, the current qualifying routes include regulated investment funds, business creation and certain cultural or artistic donations.

Credits: Supplied Image; Author: Portugal Pathways; Foreign investment in Portugal reached €213.7 billion at the end of 2025

The investment serves as the mechanism for participation; many applicants are drawn as much by residency rights, potential family inclusion and long-term flexibility as by the investment itself.

The Portugal Golden Visa programme grants a residency permit rather than citizenship, which remains a separate legal process with its own requirements under current nationality law. Under current legislation, Golden Visa holders are generally required to spend approximately seven days a year in Portugal, and the programme does not require full-time relocation.

It is also worth noting that family inclusion is assessed on application and subject to AIMA approval rather than automatic.

For anyone weighing an investment move to Portugal, this longer-term FDI shift matters more than any single year's figures. The country's appeal now rests on the depth of its talent pool, its integration into global value chains and its position within the EU, under current legislation, not simply on cost.

Portugal Pathways works with investors, entrepreneurs and family offices exploring residency, investment and business opportunities in Portugal.

Contact Portugal Pathways to find out how the Golden Visa residency-by-investment programme could fit your plans.

This article is for general information only and does not constitute legal, tax, investment or immigration advice. Portuguese immigration, nationality and tax legislation may change, and individual circumstances vary. Readers should seek independent professional advice before making any related decisions.