For decades, Portugal was viewed as Europe’s picturesque edge: a land of golden beaches, Atlantic cliffs, and port wine. But over the past 10 years, the country has reinvented itself as one of Europe’s most promising startup and tech hubs. For expats looking for opportunity abroad, this transformation is creating an increasingly compelling case: Portugal is no longer just a place to visit, but a place to build.
A Startup Scene with Real Momentum
Portugal’s entrepreneurial landscape has been expanding at an impressive pace. By 2024, the country was home to nearly 5,000 active startups, up more than 15 percent from the year before, according to data from Startup Portugal. Collectively, these firms generated €2.6 billion in turnover, of which €1.5 billion came from exports. Employment in the sector now surpasses 26,000 jobs — small by Silicon Valley standards, but enormous for a country of just over 10 million people.
Perhaps most importantly, Portugal’s startups are growing faster than the broader economy. While the national economy has been expanding at a modest 2–3 percent annually, turnover among startups has grown at a rate above 30 percent per year. That divergence has placed Lisbon and Porto at the center of Europe’s innovation conversations.
Capital Flows: From Scraps to Serious Investment
Venture capital flows into Portugal are rising sharply. The Portugal News reported that startup investment in 2024 reached €886 million, a 55 percent increase compared to 2023. While the number of deals fell, the average ticket size rose, signaling greater investor confidence and more mature companies.
Lisbon absorbed the majority of this activity, with more than 60 percent of funded startups based in the capital. Porto, Coimbra, Braga, and Aveiro, however, are developing their own niches: Porto in fintech and gaming, Coimbra in healthtech, Braga in nanotechnology, and Aveiro in telecom research.
Portugal Ventures, a state-backed VC, executed 20 deals worth €30 million in 2024. Indico Capital Partners, Lisbon’s leading private VC, poured nearly €156 million into 13 startups, while Iberis Capital deployed close to €190 million across 10 deals. These are no longer symbolic checks; they are substantial rounds supporting growth-stage companies.
Unicorns and Household Names
The country now boasts a roster of unicorns: Talkdesk, the cloud call-center software firm; OutSystems, a leader in low-code platforms; Feedzai, specializing in AI-driven fraud detection; Sword Health, a digital health company; and Farfetch, the fashion marketplace that became a global e-commerce powerhouse. Drone company Tekever, which supplies NATO with advanced unmanned systems, has also surpassed the billion-dollar mark.
The presence of these unicorns is reshaping Portugal’s reputation. Where once the country exported footballers and fado singers, it now exports software and advanced technologies. For expats seeking dynamic ecosystems, the existence of successful role models is often the difference between a promising idea and a scalable business.
Government Incentives and Policy Levers
Portugal’s rise is no accident. Successive governments since the eurozone debt crisis have used entrepreneurship as a growth lever. Initiatives like Startup Portugal, the Tech Visa, and the Startup Visa have created smoother entry paths for foreign founders.
The Startup Visa, for example, has welcomed over a thousand entrepreneurs since 2017, offering residency in exchange for building a company around a certified incubator. The newer digital nomad visa has further expanded opportunities, allowing remote professionals earning foreign salaries to live in Portugal legally for extended periods.
Tax incentives have played an equally significant role. The now-phased-out Non-Habitual Resident regime allowed expats to pay minimal tax on foreign income for up to 10 years. Its replacement, the IFICI regime, continues to offer favorable terms, including a 20 percent flat tax on high-value activities and exemptions on some overseas income.
Infrastructure and Talent Base
Portugal’s infrastructure is another selling point. Lisbon and Porto are wired with high-speed fiber broadband, and the country’s 5G rollout is proceeding rapidly. The country also boasts one of the highest rates of English proficiency in Southern Europe, especially among younger workers, making integration easier for expats and foreign founders.
Universities in Lisbon, Porto, and Coimbra graduate thousands of engineers annually, many of whom previously sought careers abroad. Today, with more local opportunities, that talent is staying put. As The Financial Times noted, Portugal’s wage levels for engineers remain significantly below those in Northern Europe, offering startups a cost advantage without sacrificing skill.
The government has also been willing to back large-scale infrastructure bets. In Sines, an €8.5 billion “Start Campus” project is building one of Europe’s largest data-center complexes, designed to serve AI and cloud computing needs. Reuters has called it one of the most ambitious digital infrastructure projects in the EU.
Global Visibility and Events
Lisbon’s hosting of the Web Summit since 2016 has been a turning point. The conference now attracts over 70,000 attendees annually, including more than 2,500 startups and 1,000 investors. While some criticize the spectacle as more hype than substance, its effect on Lisbon’s global profile has been profound. For one week every November, Portugal becomes the epicenter of global tech conversation.
This visibility matters for expats. Relocating to Lisbon or Porto no longer feels like stepping off the grid; it feels like plugging into a network that is increasingly international and high-profile.
Why Expats Should Pay Attention
Portugal’s appeal to expats rests on four key pillars:
- Market Access with Lifestyle Advantage – As an EU member, Portugal offers frictionless access to the bloc’s half-billion consumers. At the same time, it delivers a Mediterranean lifestyle at a fraction of the cost of Paris, London, or Berlin.
- Lower Operating Costs – Office rents in Lisbon remain 40–50 percent cheaper than in Western Europe’s major capitals. Salaries for tech talent, while rising, are still competitive, enabling longer runways for startups.
- Supportive Ecosystem – Dozens of incubators, accelerators, and venture programs are explicitly designed to integrate expats into the local economy. Unicorn Factory Lisboa alone has helped over 800 startups raise more than €1 billion in funding.
- Quality of Life – Safety, sunshine, and culture remain Portugal’s strongest “soft power” assets. For expats balancing career and lifestyle, these intangibles are decisive.
Challenges: A Market in Transition
The picture is not without caveats. Portugal’s housing market has become overheated, with rents in Lisbon rising more than 35 percent between 2021 and 2023, according to The Guardian. This is partly driven by the same inflow of expats and entrepreneurs fueling the tech boom. Local resentment is growing, and political pushback may tighten some of the incentives that made Portugal attractive.
There is also the issue of scale. Portugal’s domestic market is small, requiring startups to internationalize quickly. While this can sharpen competitive edges, it also raises the stakes for young firms. Venture capital, though growing, still lags behind European averages relative to GDP.
The Bottom Line
Portugal’s transformation into a tech hub is more than a passing trend. It is the outcome of deliberate policy, international visibility, and structural advantages in cost and lifestyle. For expats, it represents an unusually attractive combination: the chance to live well and build globally competitive companies from a base that is increasingly respected.
The world’s innovation economy is no longer confined to Silicon Valley or London. From Berlin to Tallinn to Barcelona, smaller cities and countries are staking their claim. Portugal has entered that conversation decisively.
For globally mobile entrepreneurs weighing their next move, the message is clear: Portugal is not just a place to relocate; it is a place to scale.
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Source: Portugal’s Tech Renaissance: A Golden Opportunity for Expats
