Why Portugal is an Entrepreneur and Talent Hotspot in 2025

Portugal has cemented itself as a top relocation destination for entrepreneurs and skilled professionals in 2025. With attractive tax incentives, thriving investment opportunities, a booming start-up ecosystem, and an enviable quality of life, it is no wonder people are flocking to this European gem.

Add in the continued success of the Golden Visa residency-by-investment programme, and Portugal is clearly continuing its upward trend.

Let’s explore why Portugal is the place to be for entrepreneurs and talent.

Portugal’s Golden Visa Residency-By-Investment Programme

Despite changes that removed real estate investments as a qualification, Portugal’s Golden Visa residency-by-investment programme remains the top choice for non-EU nationals seeking European residency.

The most popular route to securing a Golden Visa is by investing at least €500,000 in one or more approved alternative investment funds. Many investors are backing sectors where Portugal excels globally, such as media, technology, healthcare, luxury living, renewables, and tourism.

The benefits of the Golden Visa include visa-free travel within the Schengen Area, eligibility to apply for Portuguese citizenship and an EU passport after five years, and a minimal stay requirement of just seven days per year, unlike other visa options that demand a minimum of six months in Portugal.

Paul Sheedy, international advisor to the Portugal Future Fund, an alternative investment fund approved for Golden Visa residency-by-investment in Portugal, shared his insights: “We are seeing significant investment coming from around the world already in 2025 who want to take advantage of the strong opportunities and lifestyle that Portugal offers. Especially in markets such as media, technology, healthcare, luxury living, and tourism and hospitality.”

The IFICI (NHR 2.0) Tax Scheme

One of Portugal’s most attractive new policies is the Tax Incentive for Scientific Research and Innovation (IFICI), also known as the NHR 2.0 tax regime. This initiative is a magnet for international talent, offering substantial benefits to highly qualified professionals, entrepreneurs, start-up directors, and academic researchers who become Portuguese taxpayers.

The IFICI tax scheme offers a 20% flat tax rate on professional income derived in Portugal from approved activities. It also provides a 0% tax on non-Portuguese income, including capital gains and dividends, with some exceptions, such as pensions and certain blacklisted sources.

This regime is particularly appealing for professionals relocating from high-tax jurisdictions, aligning with Portugal’s goal of attracting value creators.

Additionally, Portugal has introduced a 100% tax exemption for young people earning up to €28,000 in their first year of work, gradually decreasing over ten years to keep local and international talent engaged.

A Thriving Start-up and Innovation Hub

Portugal is quickly becoming one of Europe’s most dynamic start-up ecosystems. In 2024, Braga was named the European Rising Innovative City, just one year after Lisbon was crowned the European Capital of Innovation, proving that Portugal is a powerhouse for entrepreneurship and technological advancement.

Investor confidence in Portugal is at an all-time high. According to Ernst & Young, the country is outperforming the Eurozone and the UK in attracting foreign investment. In Lisbon alone, start-up investments have grown by 30% annually over the last nine years, twice the European average, according to StartupBlink.

Government support, access to capital, and the rise of incubators and accelerators have all fuelled Portugal’s reputation as a start-up haven.

The country also hosts some of the biggest global events in media, tech, and investment, such as the Web Summit, Portugal Investment Owners Club forums, and the IFA Global Conference, which brings over 2,000 top tax and investment advisors to Portugal in 2025.

Paul Stannard, founder and chairman of the Portugal Investment Owners Club and Portugal Pathways, highlighted the country’s unique appeal: “Portugal has created a unique environment for likeminded people to be able to create sustainable investments in key sectors of the country’s economic strength, allowing value creators as well as highly qualified talent to prosper through a combination of tax incentives, quality of life, and investment.”

Portugal’s High Quality of Life

Portugal is not just a great place to do business; it is an incredible place to live. The country offers a Mediterranean climate with abundant sunshine, a rich cultural heritage, and a vibrant arts scene.

It also boasts a welcoming and relaxed lifestyle. Furthermore, Portugal has a strong focus on sustainability and innovation, making it a prime destination for Eco-conscious individuals and businesses.

With its progressive tax incentives, strong business environment, and unbeatable lifestyle, Portugal is set to remain a top choice for entrepreneurs, investors, and skilled professionals in the years to come.

Whether you are looking for a thriving business ecosystem or a sun-soaked, laid-back lifestyle, Portugal delivers on all fronts.

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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 Future Fund

The Portugal Future Fund strategically invests in key sectors, driving growth and innovation across Portugal. Approved for Portugal’s Golden Visa residency-by-investment, it offers a unique opportunity for impactful and rewarding participation.

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.