Portugal economy: Foreign companies drive 46% of exports

Foreign-owned companies play a critical role in the Portuguese economy, accounting for 46% of exports, 22% of employment, and 31% of total business turnover. According to a study by Informa D&B, there are approximately 17,000 foreign-capital companies in Portugal, with nearly 10,000 created in the last decade. Spain is the leading shareholder nation with 3,684 companies, followed by France and the United States. Notably, US-owned companies tend to provide higher wages to workers.

Foreign direct investment (FDI) in Portugal has grown by approximately 70% over the last decade, reaching 214 billion euros by the end of 2025. This makes Portugal the seventh European country with the highest FDI as a percentage of GDP. These entities are characterized by higher productivity, more technological profiles, and a higher rate of exportation compared to national companies.

Parallel economic challenges persist in Portugal, including a housing crisis where costs have outpaced wage growth, and a tourism sector facing pressures from overcrowding and labor shortages. While tourism drives significant revenue, particularly in the Algarve, there are concerns regarding the sustainability of the current model and its impact on local living costs and infrastructure.