Doing business in Portugal
The Portuguese economy has undergone a major transformation since the Revolution of 1974. Its primarily agricultural 
infrastructure has given way to a modern, service-based economy, in line with the rest of the European Union. Expats will find that doing business in Portugal reflects this recent upheaval, with a curious mixture of old-school conservatism and new-age innovation characterising the business world.
Portugal is ranked 31st (out of 183) in the World Bank's "Ease of Doing Business" rankings, excelling in the criteria of 'ease of starting' and 'ease of closing' businesses.
Although the situation is changing every day, business culture in Portugal retains vestiges of paternalism, and of strict hierarchical, 'top-down' approaches to management and leadership.
In Portugal, the strongest business relationships are those built on the trust of individuals – and as a result, nepotism has (in the past) been seen as an advantageous hiring policy. Be sure to allow time for personal connections to develop between yourself and your Portuguese business associates – familiarity can go a long way toward ensuring success.
Business etiquette in Portugal also displays an interesting mix of formality and easygoingness – with conduct being at once formal and conservative, yet also warm and relaxed. Use titles ('Señhor' and 'Señhora') until strictly instructed not to do so, and show deference to those in obvious positions of authority. There is no specific, accepted conduct for the exchange of business cards – but be sure to treat any card you receive with respect.
Business meetings in Portugal must be made by appointment – and should not ordinarily be scheduled for times when they might conflict with important family or religious holidays (Christmas, Easter, etc.). You will be expected to be punctual, although your hosts might not show you the same courtesy in return. Since the official language of business in the country is Portuguese, it is a good idea to provide translations of all important documents, and/or to engage the services of a translator, to ensure that everyone is on the same page at business meetings.
Teamwork and collaboration on important decisions is not the norm in Portugal: the accepted management style is more directive, and subordinate employees are more often than not expected to 'do as they're told', rather than to contribute to the decision-making processes.
The dress code in Portugal is strictly smart and formal – with a strong importance placed on 'looking good'. It is not an unfair statement to say that your status in the business world will be gauged by the way in which you present yourself – go for dark colours, with stylish cuts.
Although traces of nepotism are revealed every now and then, foreigners (and foreign investment) are increasingly forming an integral part of the modern Portuguese economy. So long as you treat your associates with respect and warmth, you will have no problem integrating yourself into the Portuguese business world.
It is relatively easy and inexpensive, even for foreigners, to start a business in Portugal.
Business language: Portuguese, with English as the official 'second language of business'
Hours of business: Hours vary, but are generally from 8.30am to 1pm, and 3pm to 6pm, from Monday to Friday
Dress: Formal and smart
Gifts: Not given at business meetings (could be seen as inappropriate). If invited to an associate's home, you should take along some good wine and/or flowers and/or sweets. Avoid giving gifts in numbers of 13 (considered unlucky), and bear in mind that lilies and chrysanthemums are usually given at funerals.
Gender equality: Women are ostensibly treated as equals in the Portuguese business world, though it is rare to see them occupying the highest corporate positions
infrastructure has given way to a modern, service-based economy, in line with the rest of the European Union. Expats will find that doing business in Portugal reflects this recent upheaval, with a curious mixture of old-school conservatism and new-age innovation characterising the business world.Portugal is ranked 31st (out of 183) in the World Bank's "Ease of Doing Business" rankings, excelling in the criteria of 'ease of starting' and 'ease of closing' businesses.
Business Culture in Portugal
Although the situation is changing every day, business culture in Portugal retains vestiges of paternalism, and of strict hierarchical, 'top-down' approaches to management and leadership.
In Portugal, the strongest business relationships are those built on the trust of individuals – and as a result, nepotism has (in the past) been seen as an advantageous hiring policy. Be sure to allow time for personal connections to develop between yourself and your Portuguese business associates – familiarity can go a long way toward ensuring success.
Business etiquette in Portugal also displays an interesting mix of formality and easygoingness – with conduct being at once formal and conservative, yet also warm and relaxed. Use titles ('Señhor' and 'Señhora') until strictly instructed not to do so, and show deference to those in obvious positions of authority. There is no specific, accepted conduct for the exchange of business cards – but be sure to treat any card you receive with respect.Business meetings in Portugal must be made by appointment – and should not ordinarily be scheduled for times when they might conflict with important family or religious holidays (Christmas, Easter, etc.). You will be expected to be punctual, although your hosts might not show you the same courtesy in return. Since the official language of business in the country is Portuguese, it is a good idea to provide translations of all important documents, and/or to engage the services of a translator, to ensure that everyone is on the same page at business meetings.
Teamwork and collaboration on important decisions is not the norm in Portugal: the accepted management style is more directive, and subordinate employees are more often than not expected to 'do as they're told', rather than to contribute to the decision-making processes.
The dress code in Portugal is strictly smart and formal – with a strong importance placed on 'looking good'. It is not an unfair statement to say that your status in the business world will be gauged by the way in which you present yourself – go for dark colours, with stylish cuts.
Attitude to Foreigners in Portugal
Although traces of nepotism are revealed every now and then, foreigners (and foreign investment) are increasingly forming an integral part of the modern Portuguese economy. So long as you treat your associates with respect and warmth, you will have no problem integrating yourself into the Portuguese business world.
Starting a business in Portugal
It is relatively easy and inexpensive, even for foreigners, to start a business in Portugal.
Steps for registering a business
- Choose a pre-approved company name
- Register the business at a Company Formality Centre, or Centros de Formalidades das Empresas
- Register employees with the Social Security Regional Centre
- Deposit initial business capital at the Caixa Geral de Depósitos
- Submit all business-related documents to the Labour Inspectorate
- Register for worker's accident compensation insurance
Doing business in portugal: Fast facts
Business language: Portuguese, with English as the official 'second language of business'
Hours of business: Hours vary, but are generally from 8.30am to 1pm, and 3pm to 6pm, from Monday to Friday
Dress: Formal and smart
Gifts: Not given at business meetings (could be seen as inappropriate). If invited to an associate's home, you should take along some good wine and/or flowers and/or sweets. Avoid giving gifts in numbers of 13 (considered unlucky), and bear in mind that lilies and chrysanthemums are usually given at funerals.
Gender equality: Women are ostensibly treated as equals in the Portuguese business world, though it is rare to see them occupying the highest corporate positions
Do's and don'ts of doing business in Portugal
- DO - respect authority
- DO - be warm and friendly, and willing to make personal connections
- DO - look smart and professional at all times
- DON'T - be impatient, let those in power conduct meetings at their own pace
- DON'T - be resistant to doing what you're told
- DON'T - be late, rude or self-aggrandising when attending business meetings
