Doing Business in Portugal - Chapter 2 - Business Environment

INVESTOR CONSIDERATIONS

• Economy is in a slow expansion following a recession in 1993.
• Trend is toward increasing privatization and internationalization of the economy.
• High level of EU aid to major projects, specific economic sectors and less-developed
• regions under the European Union Support Framework (1994 to 1999).
• Tax system is straightforward, but there are limited incentives.
• Local finance is expensive.
• Bureaucracy is cumbersome.

INDUSTRIAL CLIMATE

The business environment reflects the social and political changes that have taken place since 1974. Although the resulting trend is toward liberalization and freedom of enterprise, there remains a legacy of law and bureaucratic procedure that can slowly progress.