Bernardo Saraiva is co-founder and managing director at World Talents.
The numbers tell a compelling story about Portugal’s growth in the global tech and innovation landscape. According to Mapping Portugal’s Startup Landscape 2024 report, the startup ecosystem grew more than 16% year-over-year, reaching more than 4,700 active startups spanning industries from fintech to renewable energy. Collectively, that growth generated more than $2.6 billion in revenue in 2024, while creating 26,000-plus jobs.
Researchers found that tech leads this growth, with 63% of all Portuguese startups operating in information and communication technology. This dominance has resulted in notable Portuguese unicorns, including Remote, Feedzai, Talkdesk, Outsystems and others.
Global entrepreneurs are now reconsidering where to build, drawn by Portugal’s rising influence. What’s driving this shift and what should entrepreneurs consider before putting down roots in Portugal?
Why Portugal Is Attracting Global Entrepreneurs
Portugal’s emergence is the result of a few key factors that create a competitive proposition.
Costs
First, the quality of life is often a fraction of the cost of other European capitals, including competitive operational costs. In my work, I’ve seen how a developer in London or Berlin might cost €80,000 annually, but you can find the same talent in Lisbon or Porto for €45,000. But costs alone don’t build ecosystems.
Location
What sets Portugal apart is its strategic position as Europe’s gateway to global markets. It offers access to 450 million European Union consumers while maintaining strong ties to Brazil, Africa and other Portuguese-speaking markets, representing more than 260 million additional consumers. This geographic and linguistic advantage is something that cannot be easily replicated elsewhere.
Startup-Friendly Policies
Regulation is another key. Portugal has crafted some of Europe’s most startup-friendly policies, from streamlined company formation processes to tax incentives that can reduce corporate rates to as low as 12.5% for qualifying activities.
Human Capital
Portugal’s talent mobility programs go beyond simple visa processing as they create pathways for global talent to integrate meaningfully into local ecosystems. The traditional approach to international expansion often involves parachuting in with a predetermined plan and focusing mostly on passive investment. But what I’m seeing Portugal excel in is different: Entrepreneurs come with greater flexibility, engage with the local ecosystem— including universities and regional incubators from day one—and are focused on delivering a real impact.
Take the D2 visa program, which allows entrepreneurs to establish and run innovative businesses. The Highly Qualified Activity visa takes this further, targeting researchers and highly skilled professionals who want to integrate and contribute to Portugal’s innovation ecosystem. What makes this powerful is that they gain immediate access to university and research networks that would take years to build independently. The family inclusion aspect, where entire households can relocate, also removes much of the personal sacrifice that often deters many talented individuals from moving.
A Distributed Innovation Model
One of Portugal’s smartest approaches has been avoiding the concentration trap; its innovation is genuinely distributed. Beyond Lisbon, Porto has become a fintech and software development powerhouse, home to unicorns like Sword Health, Feedzai and others, and international household names like Revolut and Glovo. Coimbra, with its prestigious university, is emerging as a deep tech and research hub. The Algarve is attracting digital nomads who want to benefit from a remarkable lifestyle without compromising on connectivity. Even smaller cities like Évora and Braga are developing specialized clusters that intersect academia and local businesses.
This distributed model tends to lend itself to opportunities that don’t exist in more centralized ecosystems: more manageable real estate costs, less fierce competition for talent and local governments that are supportive of companies that choose to establish operations in their regions.
What Entrepreneurs Need To Know Before Moving
Based on what I’ve observed across the Portuguese ecosystem, there are critical factors that mark successful entries:
Start with people, not paperwork.
Yes, the visa processes are important, but they’re not your first step. Begin by engaging with the Portuguese ecosystem. I recommend attending Web Summit, connecting with local accelerators like Startup Lisboa or Startup Braga and reaching out to incubators. Understanding the landscape before you move will save you months of trial and error.
Choose your entry point strategically.
Lisbon might offer the most resources and connections, but it’s also the most competitive and expensive. If you’re in fintech or enterprise software, Porto might be perfect. Deep tech or research-heavy ventures should consider Coimbra. Remote-first companies should explore the Algarve’s growing digital nomad infrastructure.
Don’t go it alone.
Portugal’s entrepreneurial community is remarkably collaborative, but you need to actively engage with it. Join local entrepreneur groups and startup events, and don’t underestimate the value of having local advisors who understand both the market and regulatory landscape.
Think long-term from day one.
Entrepreneurs succeeding in Portugal aren’t treating it as a stepping stone; they’re building for the long haul. This means investing in local talent development, engaging with startups and contributing to the ecosystem’s growth rather than just benefiting from it.
Finally, while Portugal offers an incredible mix of opportunity and lifestyle, entrepreneurs should be prepared for practical challenges that can slow momentum. Bureaucracy remains a reality; processes that appear straightforward on paper can take weeks or months to finalize. Access to early-stage funding remains limited compared to larger markets and lower hiring costs, in turn, can create competition for talent.
What makes Portugal so compelling is its rare combination: established European market infrastructure paired with the flexibility and opportunity characteristic of an emerging ecosystem. For entrepreneurs looking to build in Europe, Portugal represents both a strategic location and a platform for growth.
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