For many international companies, Portugal is increasingly being viewed not simply as a market, but as a strategic platform for growth, innovation, sustainability, and international expansion.

With Portugal 2030 and a wide range of EU-backed incentive frameworks now active across sectors, including technology, tourism, sustainability, manufacturing, digitalisation, health, and innovation, the country is attracting growing interest from SMEs, startups, investors, and international businesses looking to establish or expand operations.

But according to Luis Escudeiro of IPBN member company ACT Solutions, many companies misunderstand what makes a project genuinely fundable.

The Biggest Misconception About Funding

“One of the biggest misconceptions is that funding is automatically available simply because a project is interesting or because the company is investing in Portugal,” he explains. “In practice, incentives are highly structured and depend on eligibility rules, timing, location, sector, investment type, company size, financial capacity, and the quality of the application.”

"This is also why many successful projects involve specialised technical, financial, and legal support from an early stage, helping companies avoid eligibility issues and structure projects correctly from the outset."

That distinction is becoming increasingly important as Portugal’s incentive landscape evolves toward more selective, impact-driven funding decisions.

What Makes a Project Fundable?

According to Luis, the companies best positioned today are not necessarily the largest, but the most strategically prepared, a sentiment he echoed in an IPBN podcast recorded in May of 2024.

“The key point is not only the sector, but the structure of the project,” he says. “Companies with a defined business model, eligible investment needs, a clear timeline, financial capacity to execute the project, and a credible growth strategy are usually in a stronger position.”

The opportunity spans multiple industries. Tourism and hospitality continue to evolve rapidly, particularly toward experience-led and sustainability-driven concepts. Technology, AI, digital services, sustainability, energy efficiency, creative industries, manufacturing, and internationalisation-focused businesses are also strongly aligned with current Portuguese and EU priorities.

Portugal as a Platform for Growth

Importantly, foreign-owned companies are not excluded from the framework. In fact, Portugal is increasingly attractive for international investors establishing meaningful operations in the country.

“For international companies, Portugal can be particularly attractive when the local operation is not treated as a passive branch, but as a real business unit with substance, investment, qualified employment, and growth potential.”

The message is clear: Portugal’s incentive framework rewards projects that create long-term economic value, innovation, employment, sustainability, and regional impact — not simply projects looking for grants.

And increasingly, successful applications begin long before the application itself.

Interested in learning more? Click here to read Part Two of this three-part Portuguese investment series with Luis Escudeiro!