According to a survey conducted by the IOD back in 2019, around a third of U.K. businesses are looking to move their operations abroad. The ramifications of Brexit have been cloaked by Covid, but it is clear that many U.K. businesses are seeking a European foothold from which to trade, and Portugal is proving to be a popular choice. For many visitors to the country their experience of its culture is probably limited to the sun loungers of the Algarve, but there are more reasons than the appeal of a relaxing lifestyle why you should consider relocating your business to Portugal.
Table of Contents
Connectivity
Portugal’s three international airports run flights to 120 European destinations, which makes it an ideal base for European business.
English is spoken in the business world
Most business activity in Portugal is centred on the capital, Lisbon, and the northern city of Porto and in these locations most businesspeople will speak English. There are also well-established business support groups and forums, and the Portuguese government is keen to welcome English speaking businesses.
Lower operating costs
Relocating a business is a complex and expensive undertaking, so the opportunity to relocate to a location in which operating costs will be much lower is a considerable incentive. Portugal has one of the lowest costs of living in Europe, around 33% lower than that of the U.K. In addition, it has a pool of skilled workers who can be hired for half the cost of other European destinations. Lisbon has become a magnet for digital nomads and skilled tech workers, particularly from Brazil, and over half of the residents between the ages of 20 and 30 are STEM graduates. Another area in which big savings can be made is in the acquisition of real estate and the renting of office space. According to data from Statista, the annual cost of office space, per square metre is 1,300 euros in the U.K., 890 euros in France, 673 euros in Ireland but just 288 euros in Portugal. It is estimated that rental prices have fallen by 10% -20% as a result of the pandemic.
A welcoming environment
Foreign workers in Portugal enjoy a ‘Non-Habitual Resident’ tax status, which means they pay a flat rate of 20% on earnings within Portugal but that income earned outside of the country is tax free. The ‘fiscal portal’ allows freelancers to invoice their customers directly, whilst small companies are able to use the ‘invoice express’. Lisbon has a number of start-up hubs and co-working spaces and the creation of a giant new hub, the Beato Creative Hub, is underway on the banks of the Tagus. Lisbon is also home to the annual Websummit, an indication of its increasing importance in the tech world.
A better work/life balance
To put it simply, Portugal is a lovely place to live. Lisbon enjoys 300 days of sunshine a year and is an hour’s drive from some of the best beaches in the world. Portugal is rated as the third safest country in the world and its people have a welcoming attitude to foreigners, recognising the economic benefits they bring with them.
