Portugal offers incentives to attract investors through its strategic location, qualified workforce, competitive costs, and high-quality infrastructure. The document outlines Portugal's strengths in various industry sectors like automotive, aeronautics, ICT, and renewable energy. It also describes Portugal's reform agenda to improve competitiveness through measures like corporate tax rate reductions, tax loss carry forwards, and incentives for foreign direct investment.

1. 25-10-2013
Why Portugal?
Government of Portugal | Ministry of Economy

2. 25-10-2013
Index
REFORMING TOWARDS THE FUTURE
INCENTIVES TO INVESTORS
WHY PORTUGAL?
PROMINENT INDUSTRY SECTORS
3
12
18
20

3. 25-10-2013
Why Portugal?
3
The right opportunity to invest in attractive businesses with solid
conditions
A favorable country
Strategic location
Qualified Workforce
Competitive costs
High-quality infrastructure
Business friendly environment
Tax incentives & grants
Meaningful partners
Dynamic approach
Focus on client or investor
Flexibility
Direct approach
Tailored incentives package
Direct negotiations
+

4. 25-10-2013
Why Portugal? Strategic location
4
 Portugal is the European nearest country to the
U.S.
 3-hour distance between Brazil and Russia.
 Same time as UK and Ireland.
Portugal 10,6
Iberian Market 51
European Market 494
Portuguese Speaking countries 220
Attractive Consumer Market
 Great and privilege economic relations
between Portugal, Brazil, Angola and
Mozambique.
 Daily flights to major European cities.

5. 25-10-2013
Why Portugal? Highly talented worforce
Sources: European innovation scoreboard 2009, European Commission
5
Portugal is ranked # 2 in Migrant Integration Policy Index
III 2011 out of 31 countries
ATTRACTIVENESS
FOR EXPATRIATES
MULTI LANGUAGE
SKILLS
WORLD CLASS
EDUCATION
Life Science, Health and Engineering areas represent 40%
of the total enrolled students in tertiary education,
2009/2010
POST‐GRADUATE
EDUCATION
HUMAN RESOURCES
PERFORMANCE
Portugal was ranked #2 in Human Resources growth
performance
250 Million Diaspora

6. 25-10-2013
Why Portugal? Competitive costs
6
 Energy costs in Portugal are bellow Euro 27 average
 Energy efficiency practices are encouraged in
construction as well as in consumption
 Hourly labor costs in 2012 decreased -4,9% (Euro
27 rose by +2,2%)
 2012: average hourly labour costs of €12.2 in
Portugal, €23.4 in the EU27, €28.0 in the euro area.
 In terms of real estate, Portugal is among the least
expensive locations
 Figures are shown for Lisbon. If we considered
Porto area, prices can lower 25%
11,412
,4
(Prices for industries in
€/100kWh – Eurostat 2012
S1)
3,4
4,0
(Prices for industries, in
€/GJ – Eurostat 2012 S1)
Electricity Natural Gas
87
100
(HFC 2011 - Eurostat)(Year-on-year rate of change –
Eurostat 2012 Q1)
-4,9
+2,2
Labor Cost Index Cost of Living
(Prices in €/sqm/year,
C&W2013)
915
290
439
(Prices in €/sqm/year,
C&W2011
12
3,
5
52,2
79,2
Occupancy cost:
office space
Occupancy cost:
industrial space

7. 25-10-2013
Sources: OECD, Airports Council International (2011)
7
Why Portugal? Highly developed transportation infrastructure
Roadway
Airport
Seaport
Railway
TOP3 European countries with
the biggest motorway length
per capita
Deep-sea water port of SINES:
 Post-Panamax Vessels
 Natural sea bottoms up to
-28m ZH
 Over 26 Million Tonns in
2011 handled
Oporto Airport was for the sixth
time one of the three best
airports in Europe
4 international rail lines exiting
Portugal; The cargo activity has
increased by 40% in the 2010-
2011 period

8. 25-10-2013
Sources: Information Technology and Innovation Foundation, European Commission
8
Why Portugal? Highly developed ICT infrastructure
“The United Nations Public Service Awards granted Portugal with 1st prize in
“Improving the Delivery in Public Services category in May 2011”.
Competitive Costs
Portugal ranks in9th place (out of 30) in
Information Technology andInnovation Foundation, 2008
Speed Lines
Coverage
ICT for all
Competitive Costs
Portugal ranks in 9th place (out of
30) in terms of lowest broadband
price
Next Generation Network
Broadband Penetration
Speed Lines
Coverage
ICT for all
95% of the country has DSL coverage
and country with the more internet
access areas
Portugal is ranked in the Top
20 countries with highest use
of optic fiber technologies
NGN is being deployed quickly. In
2010 reached 1 million users as well
as schools and public institutions
Portugal is ranked in 7th place in
fastest speed lines
31% of the population uses the
internet regularly
90% of public services are online
98% of large sized companies and 90%
of medium sized companies have
broadband access

9. 25-10-2013
1 United Nations
9
Why Portugal? Business friendly environment
MULTI-CULTURAL
 Portugal is very open to
foreign cultures: the
availability of
international schools, the
safety record and quality
of life attract expatriates
 As a result Portugal is
ranked #2 in the Migrant
Integration Policy Index
2011
 “Portugal is unique in
attracting young graduates
and executives.” Carlos
Brazão, Cisco Portugal
EASE OF DOING BUSINESS
 Major public services are on-
line
 Case study in e-Government1
 Average time to set up a firm
is less than 1-hour

10. 25-10-201310
Why Portugal? FDI track record
MANUFACTURINGSERVICES
“Our decision is a result of the recognition of the hospitality and
the commitment of the Portuguese Government, of the
multilingual skills of the local population as well as its
professionalism and ability, and proven success in innovation
areas.”
Chris Dedicoat, Senior Vice‐President for Europe, Cisco
“One of our main strategic lines was always to shorten distances
with the academic world and to bet in strong innovation,
investigation and development in Portugal thus taking
advantage of the Portuguese engineer’s excellence.
João Picoto, Chairman of Nokia Siemens Networks Portugal

11. 25-10-201311
Prominent sectors | Automotive & Aeronautic
Increasingly integrated & complex technological offer
Distinctive capabilities in component manufacturing
systems´ development and maintenance
World-class engineering schools and work-force
qualification programmes
Vibrant entrepreneurship in the aerospace sector
AeronauticAutomotive
Automotive Electronic Systems and composites
Export oriented producers keep on reinforcing their
investments
1.100 electric charging points
Portugal is the top lithium producer in Europe
Industry Turnover: 9,300 Mln€
Exports: 5,240 Mln€
Sector workforce: 80,000
Main activities: Assembly and parts manufacturing
Export destinations: Germany, France and UK
Industry Turnover: 672 Mln€
Exports: 311 Ml€
Sector workforce: 10,337
Main activities: Construction, parts, maintenance
services
Industry
highlights
Potential for
development
Key players

12. 25-10-201312
Prominent sectors | ICT & Life Sciences
Good national infrastructure
Areas with economic viability: Biotech & Pharma
and Medical Devices
Portuguese scientists awarded
Life SciencesICT
Good position worldwide in ICT development index
Growing number of entrepreneurial companies and
market leaders in Information and Communications
Technology
 Great economic potential in the industries of
Information and Communications Technology
Industry Turnover: 13,729 Mln€
Industry Value Added: 5,344 Ml€
Sector workforce: 72,531
Main activities: hardware, software, telecoms, ERP,
SSC, BPO, security, business process man., compliance
Export destinations: Germany, Spain, France and UK
Production: 10,456 Mln€
Industry Value Added: 5,500 Ml€
Sector workforce: 257,000
Main activities: Pharma, medical devices, healthcare
Industry
highlights
Potential for
development
Key players

13. 25-10-201313
Prominent sectors | Agro, fishing and food ind. & Pulp and paper
Quality raw material
Portugal: 4th largest European producer of pulp
Business opportunities: Chemical products,
technical repair & maintenance services, software
and equipment design, baby nappies, incontinence
& feminine hygiene products, environmental
improvement
Pulp & paperAgriculture, fishing & food industry
Business opportunities: Seeds production, cereal’s,
nuts, powdered milk
Alqueva lagoon: biggest artificial water “mirror” of
Europe (250km² )
Production: 17,500 Mln€
Exports: 4,577 Ml€
Sector workforce: 206,000
Main activities: Olive oil, meat, dairy produts,
cofee & tea , bakery & confectionery, fruits &
vegetables, water, soft drinks and juices, beer
Production: 3,600 Mln€
Industry Value Added: 1,800 Ml€
Sector workforce: 11,250
Main activities: Pulp, paper, board
Industry
highlights
Potential for
development
Key players

14. 25-10-201314
Prominent sectors | Petrochemical & Mining
Quality ore deposits
Mineral potential for several substances
Diversified models for precious metal deposit
MiningPetrochemical & chemical
The portfolio of products contains almost all the basic
petrochemical products
Two important regional hubs
Production: 4,300 Mln€
Exports: 5,550 Ml€
Sector workforce: 12,200
Main activities: Petrochemical, chemical, PET, PTA
Production: 680 Mln€
Exports: 600 Ml€
Sector workforce: 9,550
Main activities: Ore, copper, zinc
Industry
highlights
Potential for
development
Key players

15. 25-10-201315
Prominent sectors | Textile and clothing & Building Materials
Portuguese Building Materials Sector Performance
Key Player exporters
Investment opportunities
Availability of unique raw materials
Building materialsTextile & clothing
Portuguese Textile and Clothing Sector Performance
Export oriented industry
Labour cost competitiveness w/ high quality, shorter
lead times, flexible production systems
Investment opportunities available
Easy access from Portugal to major european markets
Industry Turnover: 5,300 Mln€
Exports: 4,000 Ml€
Sector workforce: 132,800
Main activities: Apparel, medical and hygiene, car,
sports
Exports destinations: EU, USA, Angola
Industry Turnover: 5,400 Mln€
Industry Value Added: 3,000 Ml€
Sector workforce: 81,000
Main activities: Ore, copper, zinc
Export destinations: Spain, France, Angola, USA
Industry
highlights
Potential for
development
Key players

16. 25-10-201316
Prominent sectors | Renewables & Building Materials
Competitive Costs
Office space
Reference Players
Business Services SectorRenewables
Good national infrastructure
Portugal is the 9th European country with the biggest
solar energy installed capacity
Areas with economic potential: wind, wave energy,
biomass, etc.
Production: 13,200 Mln€
Exports: 80 Ml€
Sector workforce: 9,236
Main activities: Wind, water, solar and earth
Production: 13,400 Mln€
Sector workforce: 360,000
Main activities: Shared services and outsourcing
Industry
highlights
Potential for
development
Key players

17. 25-10-201317
Prominent sectors | Moulds & Metalworking
Investment opportunities
Exports focus
Highly skilled and competitive labor cost
MetalworkingMoulds
Investment opportunities
Moulds components
Production: 620 Mln€
Exports: 500 Ml€
Sector workforce: 8,200
Main activities: plastics, glass, metals
Exports destinations: Germany, Spain , France
Industry Turnover: 24,000 Mln€
Value added: 6,000 Ml€
Exports: 37% of Portuguese exports
Sector workforce: 253,000
Main activities: Automotive, household appliances,
industrial maintenance, tooling, cleantech industry,
agriculture and equipment for manufacturing
Industry
highlights
Potential for
development
Key players

18. 25-10-201318
Reformist Agenda| Structural reforms
 Opening to foreign
investment and to the
challenges of
international competition
 Competitive location for
physical and human
capital
 Fully integration in the
Single European Market
 Development of a stability
culture
Judicial system
Broad range of reforms Structural transformation
Confidence,
credibility and
justice
Openness,
competition and
competitiveness
Entrepreneurship,
innovation and
labor market
flexibility
Limited State and
economic
democracy
Network industries: energy,
telecommunications, transports
Competition
Housing Market
Labor market
Education and training
Privatizations
Special rights of the State
Public procurement
Administrative burden
Pillars

19. 25-10-2013
23,5% ‐
17,0% ‐
31,5%
29,5%
25,5%
19,0%
2013 2014 2015‐2016 2017‐2018
19
Reformist Agenda| 2013 Corporate Income Tax Reform
Top Corporate Tax
2014
2018
Statutory Corporate tax rate reduction
by 2 p.p. (from 25% to 23%)
Statutory Corporate tax rate to be
17%-19%
Top Corporate Income tax of 17%-19%
 Worlwide exemption regime: dividends paid by
Portuguese subsidiaries to non-resident parent
companies as well as capital gains will be tax
exempt, provided a 5% shareholding is held for 12
months
 Simplified tax system: tax obligations reduced by
1/3. Conflicts are clarified in line with case law
 Simplification of Transfer Pricing (TP) rules: In
line with the OECD guidelines. In addition,
advance pricing agreements’ procedures are now
more flexible, making it much easier for
companies to conclude APA agreements with the
tax authorities
 Extension of the tax losses carry forward period
to 12 years from 5 years
 Framework that provides stability of firms’
income taxation
 Creation of an office tax for international
investors
2016

20. 25-10-201320
Incentives| Incentives to individuals
 Capital transfer of an amount equal to or above 1 million Euros
 Creation of, at least, 10 jobs
 Acquisition of real state with a value equal to or above 500.000 Euros
DetailsDescription
Requirements'
Embassy's and Consulates;
Online at www.sef.pt
Access
 Maintain the investment for a minimum of 5 years;
 Stay in Portugal for periods that add to up to a minimum of 7 days per
year
Commitment
Qualified Expatriates in:
 High added-value activities;
 Scientific, artistic or technical activities;
 Upper management positions.
Target
 Flat rate of 20%Income tax
GoldenVisaExpatsIncentives

21. 25-10-201321
Incentives| Incentives to Companies
 Interest free loan for up to 7 years, with 3 years grace period;
 Conversion of the loan into cash grant upon accomplishment of contractual goals, up to 75% of the
financial incentive.
 Corporate tax credit of up to 20% of the investment;
 Exemption of local taxes;
 Exemption of stamp duty;
 Tax incentives for R&D (SIFIDE II).
 Some training expenses are eligible for an incentive base rate of up to 60% for general training, and
25% for specific training;
 Increase of 10% outside Lisbon region and for disadvantaged workers.
FINANCIAL GRANTS
FISCAL GRANTS
TRAINING GRANTS
Wage Incentives – Grant up to 20% of wage costs arising from job creation
 Exemptions up to 36 months or reduction up to 50% of social contributions in first job and unemployed
hiring
JOB CREATION