If you’re wondering about the most profitable business in Portugal, this article will guide you. No doubt, Portugal’s vibrant economy is attracting entrepreneurs worldwide. Portugal offers fertile ground for businesses to flourish with a skilled workforce, a stable government, and a competitive corporate tax rate of 21% (and even lower rates for specific sectors). Whether you’re a seasoned entrepreneur or brimming with a fresh idea, Portugal deserves a spot on your radar. So, here we’ll consider some profitable businesses and sectors to consider if you want to open a business in Portugal.

What is the Most Profitable Business in Portugal?

Food establishments 

Portugal has a booming tourism and hospitality sector. Hence, creating a food-oriented establishment is always a win. Here are some ideas:

• Healthy eating outlets: Healthy eating cultures like veganism, vegetarianism, and other healthier ways of eating are on the rise everywhere in the world including Portugal. Hence, you can always set up an innovative, and trendy money-making kitchen that offers these alternative food options. 
• Exotic dishes: The number of immigrants in Portugal is ever-increasing. For instance, between 2016 and 2020, the country registered a 151% increase in migratory flow. So you can find significantly more residents from other countries in different parts of the country. Often, they favor one region or the next. For instance, Greater Lisbon has over 72,000 Brazilian residents. Often these residents are always interested in a store or restaurant that offers foods from the culture. Popular exotic eateries focus on Indian, Asian, and Brazilian food. Still, before choosing where to locate your outlet, ensure it is the region that receives the most residents from that country.

Franchises

Franchises are also a delightful way to invest in a great venture. Plus you have the advantage of investing in a brand that already has credibility. And you’ll have a lot of support from that brand alongside bigger companies. 

Digital solutions 

Portugal also has witnessed growth in e-commerce, software, and IT companies. So you can build a business that provides software solutions and services to this industry. There are also tons of opportunities here ranging from products and services that face consumers directly or cater to other digital businesses. In our world together, this is one of the most profitable businesses in Portugal. 

E-commerce stores 

As we’ve already said, e-commerce establishments are on the rise all over the world, and Portugal isn’t left out. You can set up an e-commerce store that caters only to Portugal or even a section of Europe. Setting up an e-commerce store also saves you the cost of maintaining a physical space. You only need to refine your product and then set up marketing and sales funnels and solutions alongside getting the right network for delivering your products to customers. 

Hostels  

Hostels, hotels, and other kinds of accommodations are always lucrative ventures, especially in a country like Portugal with high tourism demand. Hostes specifically are on the ride and they mostly cater to freelancers, remote workers, digital nomads, and more. You may also often attract seasonal workers as well who are looking for budget-friendly accommodations. Plus, hostels often require people to share everything. So they require lower costs to put in place than a hotel, resort, or other forms of accommodation. And your returns will be consistent and regular. You only have to make sure you’re set up in the right regions in Portugal with the highest tourist pull per year.

Beauty clinics

One of the most profitable business in Portugal is opening a beauty clinic. People who are on vacation also often require a spa, manicure, pedicure, and other aesthetic procedures. Hence, there’s always a demand for these clinics in Portugal. However, your location will also influence the market you can command as well. 

Children’s outlets

There’s no shortage of the need for children-related items. You can set up a shop that caters exclusively to children’s entertainment for example. Or other types of establishments such as children’s buffets, recreational centers, tutoring, gyms for kids, franchises for the market, and more. There are even e-commerce establishments dedicated to kids as well.

Airport Shuttle Service

You can register with a shuttle operator or start your shuttle service to offer a transfer service from the airport to tourist sites across Portugal. This is a lucrative investment and you don’t need a lot of things to get started. Do note that you might need to get a commercial permit and license for this type of business. Also, you’ll need to research the rules and regulations governing shuttle operators and this type of driving service in general. 

Food delivery business

People often have busy lifestyles and schedules. Hence, they love a service that they can order food from. You can create a food delivery business that will courier food to customers. Often this demands either connecting with restaurant owners or customers. You might need a truck or some vehicle to deliver the food. 

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Commercial fishing business 

The fishing industry in Portugal is alive and well. So you can build the most profitable business in Portugal within this industry. However, you’ll need to go local and figure out how to tap into the market. Plus, you’ll need proper licenses and learn all about the regulations. You’ll also need to register your business name and get a boat that fits all the requirements. Don’t also forget to secure contracts with the restaurants and food companies you want to serve right away. 

Business Consultancy 

If you have in-depth knowledge about growing a business, especially an international one, you’ll be in demand in Portugal. Business consultants serve as professional advisors helping companies achieve their goals and streamline operations. Of course, you’ll need to get the appropriate certifications in the section of business you want to focus on. Then, you’ll need to start building your professional network in Portugal and grow your socials and web presence. You can always get started by joining expat groups and forums, to get acquainted with the job and business scene in Portugal.

Pet market

The pet market sector is also having a time now. So you can set up the most profitable business in Portugal in this sector. Cities like Porto and Lisbon have tons of pet stores. However, you’ll need to learn more about the market there to cater to it. And there are tons of subcategories of businesses to try You can set up a pet food store, wellness store, and even a hotel for cats and dogs. These are all money-making business ideas. 

Property management agency

A property manager is responsible for the day-to-day operations of any property. Property managers handle tasks such as marketing, leasing, collecting rent, and maintaining properties. To succeed in this field, you’ll need strong people skills since you’ll be serving as the go-between clients (landlords) and their tenants. Portugal has a thriving sector of passive real estate investors who are typically not based in the country. These investors often require property managers to help them with their real estate investments. 

Virtual Assistants

Virtual Assistants support businesses, teams, and individuals by performing administrative tasks remotely. Being a virtual assistant is also flexible, which is why you can choose any location to work from. As a virtual assistant in Portugal, you’ll love setting up a home office where you can work in a quiet and distraction-free environment. 

Other Great Business Ventures in Portugal 

• Tour guides: Tour guides are always in demand. You can either join a tour company or set up yours and curate experiences that people would love.
  Tech business: Tech businesses are also pretty lucrative in a forward-thinking country like Portugal. However, getting a tech startup off the ground requires a ton of work and capital. You’ll need to consider your expertise, search for your seed and working capital, and figure out the equipment needed.
• Saas products: Surprisingly a subset of the tech products market is growing at an accelerated pace. You can build a Saas product that meets the demands of people in Portugal and all over Europe. For instance, you could build an analytics tool that helps users, access, visualize and analyze data. Other ideas include AI tools, social media scheduling tools, etc. Nevertheless, often, these products might require significant capital to put together the right team, build, market, and reach your customers.
• Recruiting agency: Portugal has been attracting tons of expats, freelancers, and remote workers looking to work in the country. But often these people may not know how to break into the market. If you’re already knowledgeable about the Portuguese market, networking effectively, and more, you can set up your recruiting agency to help these people find satisfying careers in Portugal.
• Cleaning Business: A cleaning business is an evergreen business idea that works everywhere. If you love cleaning and would want to make money doing this, it’s a great idea. Plus, you won’t need a lot of equipment and startup costs. The most you’ll spend is on networking and marketing your services to the right people. That said, niching out makes it easier to scale. You will need to figure out if you want to cater to homes,  or commercial businesses and the level of cleaning services you want to deliver. In as little as 30 days, you can get your cleaning business off the ground.

Three Profitable Sectors Poised for Growth

Beyond the business ideas we’ve already listed, you can take a look at the thriving sectors across Portugal that stand out for their profitability. This can also help you figure out the most profitable business in Portugal to build for yourself. So, here are some of the hottest:

Tourism

Portugal’s breathtaking scenery, rich history, and cultural experiences continue to enthrall tourists. This booming sector presents opportunities for businesses like boutique hotels, and travel agencies specializing in unique tours, and eco-friendly tourist experiences. Portugal’s Digital Nomad Visa further fuels the sector, attracting remote workers who extend their stays and contribute to the local economy.

Technology

 Portugal’s tech sector is experiencing a surge, fueled by government support and a pool of skilled tech talent. Businesses like software development companies, cybersecurity firms, and those specializing in artificial intelligence are finding success here. The thriving startup scene in Lisbon and Porto is a testament to the sector’s potential.

Renewable Energy

Portugal is a leader in renewable energy adoption, with a focus on solar and wind power. This shift creates a demand for businesses like solar panel installation companies, wind farm maintenance services, and energy efficiency consultancy firms. Government incentives further support the sector’s growth, making it an attractive investment opportunity.

These are just a few examples, and the most profitable sector for you will depend on your skills and interests.

Where to Open a Business in Portugal?

Wherever you wish to open a business in Portugal will ultimately depend on the Business you want to create and how much success you are aiming for. That said, Portugal is divided into seven regions. Two of these are autonomous regions in the Atlantic Ocean, where you’ll find free economic zones. These Azores and Madeira are some of the most profitable regions for starting a business in Portugal in terms of import and export of goods, exemption from duties, and free movement of capital, taxation, and other benefits. 

Investments in these regions often focus on the tourism and hospitality industries. It’s no wonder, the Algarve, Azores, and Madeira are home to some of the most famous beaches and luxury hotels. Plus, the Portuguese government has recently increased issuing licenses to develop certain areas in Portugal such as Alentejo and Aveiro. However, traditionally, investors often pick the capital Lisbon. 

Concluding Thoughts 

Portugal’s vibrant economy beckons entrepreneurs with its skilled workforce, stable government, and competitive tax rates. This guide has explored various profitable business ideas across diverse sectors, from tourism and technology to renewable energy and pet care.

Remember, the most successful business aligns with your skills and interests. Consider your target market and leverage Portugal’s strengths in tourism, hospitality, and technology. In the end, you’ll be able to build the most profitable business in Portugal for you. 

Frequently Asked Questions about the Most Profitable Business in Portugal

Which type of business is best in Portugal?

There isn’t a single “best” business in Portugal, as it depends on your skills, interests, and the current market. However, industries like real estate, tourism, agriculture, hospitality, and manufacturing thrive in Portugal.

What is the best investment in Portugal?

Real estate is a popular investment, but Portugal also offers opportunities in startups or venture capital depending on your risk tolerance.

Can you live in Portugal for $3000 a month?

Yes, the Portuguese minimum wage is only about 750 Euros per month. You can leave on $3,000 especially if you choose outside major cities like Lisbon. That said, your visa options will also heavily influence how much money you need to have always in your account to legitimately reside in Portugal. 

What is the minimum investment in business in Portugal?

There’s no set minimum. However, some visa programs require investments like €350,000 in real estate or €500,000 for capital transfers.

What is the tax rate for small businesses in Portugal?

Rates vary depending on business type and income but generally range from 17% to 21%. However, your visa options and immigration status, alongside the business industry will also heavily influence the incentives, deductions, and benefits you can attract. 

What is the average wealth in Portugal?

Portugal’s average wealth is lower compared to some European countries.

Is it worth buying a property in Portugal?

Portugal’s real estate market is strong and blooming. However, your needs, such as rental income, vacation home, and immigration by property status will heavily influence how much buying property in Portugal will mean to you.