Portugal is situated on the southwest coast of Europe, bordering only with Spain. With a territory of 92,152 Km2, Portugal has the largest maritime zone in Europe. Its continental platform borders the American platform.

Portugal’s total population is approximately 10 million. Most of the country’s population lives in the mainland; less than 5% live in the Azores and Madeira islands

Portugal has an 800-year history, and its European borders have been established for over 500 years. Because of this, the country has a homogeneous population, sharing similar values despite slight regional differences.

During the ’50s, ’60s and ’70s of the last century, emigration to other European countries and America was common, especially to Germany, France, Luxembourg, Switzerland, the United States and Canada.

More recently, depending on economic cycles, we have seen many Portuguese move out of the country, this time with better working skills. Portugal also welcomes many foreign investors and retirees.

Portuguese is one of the «Roman» languages that evolved from Latin.

Portuguese is the sixth most spoken language in the world, spoken by 270 million people in Portugal, Brazil, Angola, Cape Verde, Mozambique, Guinea Bissau, São Tomé and Príncipe and Timor.

English is widely spoken in Lisbon, Oporto, Algarve, and other tourist destinations. Although most Portuguese nationals do not speak Spanish, most people can understand it. French is less spoken since English replaced it as a second language in schools, but some people still speak it.

In the last quarter of the 20th century, Portugal underwent profound political, social, and economic changes.

Portugal is a republic based on a parliamentary democracy. Legislative power lies with the Parliament, composed of 230 deputies elected by universal suffrage for four-year terms. The Government holds executive power, but depends on the support of the Parliament, which also has the power to remove it.

The President of the Republic has limited powers, although he can influence the decisions of Parliament and the Government, and has the authority to dissolve Parliament under very exceptional circumstances.

Laws and decrees approved by Parliament and the Government, respectively, are promulgated by the President of the Republic. The President may veto legislation and refer laws to the Constitutional Court for review of their constitutionality.

Laws and decrees approved by Parliament and the Government may also be submitted to the Constitutional Court for constitutional review by a certain number of deputies or by the Ombudsman. The Constitutional Court’s decisions are binding for all courts and public authorities.

Portugal has been a member of the European Union since 1986 and is a founding member of the Eurozone, the United Nations, the North Atlantic Treaty Organization ("NATO"), and the Organisation for Economic Co-operation and Development ("OECD").

Portugal is also a member of the Community of Portuguese-Speaking Countries (Comunidade dos Países de Língua Portuguesa, "CPLP"), an organization that brings together all nations with Portuguese as an official language, and party to numerous bilateral treaties, including those aimed at avoiding double taxation.

Portugal is one of the founding members of the Euro, the currency adopted by 20 European countries. The Euro is the second most traded currency in the world, after the United States Dollar.

The currency symbol is “€”, and it includes seven banknotes and eight coins: banknotes of 200, 100, 50, 20, 10, and 5 euros, and coins of 2 and 1 euros, as well as 50, 20, 10, 5, 2, and 1 cent.

The Bank of Portugal is the central authority supervising the banking system and is also a member of the European System of Central Banks ("ESCB").

The main banks operating in Portugal are:

• Caixa Geral de Depósitos, owned by the State;
• Millennium BCP, listed on Euronext Lisbon;
• Santander Totta, fully owned by the Spanish banking giant Santander;
• BPI, now controlled by the Spanish bank LaCaixa; and
• Novo Banco, which succeeded Banco Espírito Santo after a resolution measure in 2014 — at that time, the oldest Portuguese bank. Novo Banco was recently acquired by Crédit Agricole, a leading French bank.

The Portuguese banking system is modern and efficient, offering a wide range of financial products, despite the difficulties it faced following the 2008 global financial crisis and the international bailout of Portugal in 2011, which led to the collapse of several banks – namely Banco Espírito Santo, Banif, Banco Português de Negócios, and Banco Privado Português – and to changes in the ownership structure of many others.

The banking system provides credit to companies and individuals at competitive rates, although lending conditions are now stricter than before the crisis due to increased regulatory pressure.

The Portuguese capital market is governed by the Securities Code, national legislation, and European regulations and directives. The Portuguese stock exchange, Euronext Lisbon, is part of the Euronext Group.

Portugal was a pioneer in establishing a nationwide ATM network, which allows cash withdrawals, fund transfers, and other services throughout the country.

Major credit and debit cards (Visa and Mastercard) are accepted in most commercial establishments.

Relevant legislation

Constitution of the Portuguese Republic [Portuguese] [English]

International organisations' reports 

Banco Mundial: «Doing Business 2020» (Full Report)

Banco Mundial: «Doing Business 2020» (Portugal Economy Profile)

Fórum Económico Mundial: «Global Competitiveness Report 2020»

Macedo Vitorino's briefings

«WhyPortugal 2021 - Guia do Investidor» (2021) [Português] [Inglês]

«WhyPortugal 2020 - Guia do Investidor» (2020) [Português] [Inglês]

«WhyPortugal 2019 - Guia do Investidor» (2019) [Português] [Inglês]

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