Portugal’s traditional investment pitch was relatively straightforward: access to the European market, political stability, Atlantic geography and operating costs below those of many Western European economies.
Those advantages remain. They are becoming less useful, however, in explaining some of the investment now arriving in the country.
In Sines, Nscale is expanding its artificial-intelligence infrastructure with almost €700 million of additional investment and plans to install more than 66,000 next-generation Nvidia processors.
In Porto, US technology company UJET selected the city for its first European technology hub, citing access to qualified talent and an established technology ecosystem.
Neither decision can be explained by inexpensive labour alone.
AI infrastructure depends on energy, international connectivity and specialised engineering. Technology companies need programmers, researchers and experienced managers.
Advanced manufacturing requires suppliers capable of meeting demanding technical standards. Universities and research institutions increasingly form part of the investment decision alongside roads, industrial land and tax conditions.
Portugal has built more of that capacity over the past decade. The number of researchers measured in full-time equivalents increased 68.2% between 2014 and 2024.
High-technology exports reached a record €4.08 billion in 2025, led by telecommunications, while aerospace recorded particularly strong growth.
The change should not be overstated. Portugal invested about 1.7% of GDP in research and development in 2024, still below the EU average of 2.24%.
Attracting sophisticated foreign investment is also different from building a higher-value domestic economy.
The larger benefit comes when international companies recruit and develop Portuguese talent, buy from local suppliers, work with universities and research centres, and create opportunities for technology and intellectual property developed in Portugal.
That is a more difficult model than competing on cost. It also offers greater potential.
Portugal’s geography can help attract a data centre, engineering operation or technology company. Competitive costs can still influence the decision.
But the investments capable of raising productivity and supporting higher wages increasingly depend on something harder to reproduce: the depth of skills, research and companies around them.
Portugal spent decades becoming an attractive place to locate economic activity. The next stage is becoming a place where more of its value is created.
Unlock the door to exclusive property opportunities in Portugal with our bespoke advisory services. We pride ourselves on providing objective, client-focused advice that empowers you to make informed decisions.
From market analysis to legal support, we cover every detail. Don’t miss out on your perfect Portuguese property, contact us to begin your journey.
