S&P Upgrades Portugal’s Credit Rating to A+

Portugal has secured a significant vote of confidence from the global financial community, with S&P upgrading the country’s sovereign credit rating from ‘A’ to ‘A+’.

The global credit rating agency S&P Global grades nations based on their economic stability, performance, and fiscal management.

The move underscores Portugal’s continued trajectory of economic resilience and its appeal as a destination for international investment.

According to S&P, expectations of further external financial deleveraging were a decisive factor behind the upgrade.

The agency emphasised that, despite heightened geopolitical and trade uncertainty, Portugal is demonstrating consistent economic stability and growth momentum.

Crucially for investors, S&P noted Portugal is likely to remain largely insulated from the effects of the EU-US trade deal.

The country’s competitive advantage in tourism, coupled with a deliberate focus on deleveraging, is expected to offset potential Eurozone tariff headwinds.

While defence spending obligations and a modest slowdown are anticipated in 2025, the agency stated: “Portugal's debt as a share of GDP will continue to decline, albeit at a slower pace during 2025–2028.”

Looking further ahead, S&P forecasts a rebound in growth in 2026, fuelled by accelerated private investment before stabilising towards 2027–2028.

Confidence in Portugal’s long-term trajectory is also being bolstered by major infrastructure commitments.

Last month, the government unveiled a €4 billion investment plan to modernise and expand its key ports over the next decade, with private companies expected to finance around 75% of the programme.

Paul Sheedy, international advisor to the Portugal Future Fund, an alternative investment fund eligible for Portugal's Golden Visa, said: “We have already seen significant investment coming from around the world this year from individuals who want to take advantage of the strong opportunities and lifestyle that Portugal offers.

“We have seen that particularly in markets such as media, technology, healthcare, luxury living, and tourism and hospitality.”

In line with the upgrade, S&P revised Portugal’s outlook to stable from positive, signalling confidence in the country’s ability to maintain economic and fiscal discipline over the medium term.

Investor confidence in Portugal is currently at an all-time high, with 84% of entrepreneurs surveyed by international business consultants Ernst & Young (EY) planning to expand or establish operations in the country, compared to 72% for the Eurozone and 69% for the UK.

The EY report also revealed 77% of global executives expect Portugal’s investment attractiveness to improve over the next three years, surpassing expectations for the broader Eurozone, which are just 67% and 59% for the UK.

Paul Stannard, Chairman and Founder of Portugal Pathways and the Portugal Investment Owners Club, said:

“Portugal is uniquely positioned as a safe and stable investment destination with its vibrant culture and growing international reputation for investment and relocation.

“For HNWIs, affluent families, and institutional investors, the combination of economic stability, tax incentives, and market growth projections in key sectors of its economy makes Portugal a compelling proposition.

“There has been a clear uptick in interest in the past year for Portugal’s Golden Visa and the new Tax Incentive for Scientific Research and Innovation (IFICI), also known as the NHR 2.0 tax regime, which was launched at the beginning of 2025.”

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About Portugal Pathways

Portugal Pathways has supported hundreds of Golden Visa residency-by-investment applications and provides expert guidance through its professional supply chain network on luxury property, wealth management, and tax optimisation, including post-NHR tax regime planning, as well as private healthcare, IFICI tax incentive applications, money transfers and bespoke relocation solutions to enhance life and investments in Portugal.

About Portugal Investment Owners Club

The Portugal Investment Owners Club, or P Club for short, is a unique investor membership community designed for discerning individuals, families, and organisations committed to exploring and capitalising on life in Portugal and enjoying money-can't-buy experiences and exclusive events.

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Disclaimer: The information on the Portugal Pathways and Portugal Investment Owners Club (P Club for short) websites and in email communications is for general informational purposes only and should not be construed as legal, tax, or financial advice. You should consult and check with a qualified professional advisor before relying on any information provided on this website or in email communications. As it relates to investments in Golden Visas or other wealth management solutions offered by regulated and professional advisors, it is important to note that past performance is no guarantee of future returns. Private equities can be highly illiquid and come with risk and should always be under professional independent advice. Golden Visa investments need to be held for 6 to 7 years to allow for permanent citizenship/passport in the EU.