Starting a business in Portugal
Starting a business in Portugal
To start up a new enterprise aiming at the Portuguese market is
a difficult task at this point in time. The Portuguese economy
is struggling; the new Government has raised taxes including the
rate of VAT to 21%, hoping to close the gap in the budget,
bringing it in line to comply with the European directive.
The increasing number of people from different European
countries moving to Portugal opens up new opportunities when one
looks at the market the foreign community represents.
The majority of ex pats do live in the Algarve Region of
Portugal. So if one is considering staring a business or buying
an existing one that's the place to do it.
Let us look at some figures; According to the latest official
count there are around 30,000 British people living in the
Algarve followed by 20,000 Germans and a further 15,000 is made
up of smaller groups of people, coming from Holland, Belgian and
France. In total the Algarve has a total ex pat population of
almost 65,000 and that is just the official figure. The number
of different nationalities living in this melting pot of
different cultures is believed to be close to 87.
There is no doubt, that the influx of different people from all
over Europe has enriched the Region in more ways than one. It is
quite a sizable market to tap into, providing, one has the right
idea how to market ones services or products. In my opinion,
there is a need and use for a lot of things.
Since almost everyone amongst the foreign residents speaks
English the language hurdle is not so serious, and that is in
it's self an advantage if one speaks only one language.
There is more to business life in Portugal or the Algarve for
that matter, than to open a bar or Restaurant. I would challenge
anyone who tells me that a Bar or Restaurant in the Algarve
makes good money. I am not trying to talk down or belittle the
owners of Bars or Restaurants. All I try to say; be careful if
you are considering getting into that line of work. Yes, there
are always the exceptions, and there are establishments which
are running well. But on the whole this particular trade does
not offer a great deal of return on the investment.
Most people have a skill or a profession, with which they earned
their money in their home country and it is quite likely, that
your "old" skills can be used in your host country. The
difficulty is that one may have to apply them in a slightly
different way. Don't forget it is a different country and what
worked in the UK or Germany or Holland may not work here in the
same way. If you are thinking of buying or starting a business,
just give us a call and have a chat with us. We are confident
that we can give you some helpful advice or even some good
ideas, or at least point you in the right direction where to get
the information you need.
If you look at our web site www.sellandbuydirect.com you will
see that we provide a free information service for anyone with
questions on just about anything concerning Portugal in general
and the Algarve in particular.
Good luck