In recent years, Portugal has positioned itself as a growing tech hub and has established itself as a popular location for nearshoring services. Through its success, Portugal now emerges as the new up and coming tech hub in southwestern Europe.
One of the key drivers of powerful IT and tech transformation is the Portuguese government’s proactive investment in the technology sector, and in startups.
By implementing numerous policies and programs, such as tax incentives for startup companies and funding for research and development (R&D), the government has cultivated an environment for technological innovation and business growth.
The country is proud of its highly educated workforce, which includes a large percentage of graduates from leading universities. The New University of Lisbon, the University of Mingo, and the Polytechnic Institute of Lisbon are among the top universities for technology in Portugal, which has 32 IT universities.
STEM graduates (in Science, Technology, Engineering, and Mathematics) constitute 30 % of all graduates, well above the EU average (26 %).
In 2022/2023, it was reported that the number of students enrolled in higher education hit a record 446,028, a 3% increase from the previous year.
According to Eurostat data, approximately 11,000 students graduate each year with Information and Communications Technology and Engineering degrees in particular.
The aggregated number of graduated Portuguese tech and engineering specialists for the last ten years is around 130,000. Sources report that the high-tech-educated workforce currently is above 80,000, and constantly growing.
Adding to the substantial number are European digital nomads and the influx of Portuguese-speaking IT talents from Brazil working as freelancers or remotely, enjoying favourable tax schemes.
Many within the workforce are also multilingual, which is an attractive attribute for nearshoring services as it removes the challenges of language barriers. Ranked in the top 10 of most English-proficient countries in Europe (currently as #9), fluency helps with daily communication and problem-solving.
Another attribute is the country’s close proximity to Western European locations, such as France and Spain, and historical ties with the United Kingdom for trade.
As a Southern European country with a population of 10.41 million, Portugal offers a desirable lifestyle. Its proximity to beaches, warm climate, and rich culture make it an appealing location for non-native tech professionals.
The climatic advantages have also contributed to the growth of a vibrant startup community and attracted international talent, contributing to a dynamic and diverse pool of professionals and furthering the tech sector’s expansion.
In 2023, research highlighted that Portugal was home to 4,000 active start-ups and scale-ups, providing 25,000 jobs which lifted the economy.
In 2023, research highlighted that Portugal was home to 4,000 active start-ups and scale-ups, which provided 25,000 jobs and lifted the economy.
In the centre of it, the captivating capital city, Lisbon, has emerged as a base for startup activity and is said to encourage talent from across the country and worldwide.
Portugal has an emerging “Silicon Valley culture” as one of the top European spots for
digital nomads. The government has launched More remote work could create more opportunities for freelancers in the future.
The startup ecosystem has experienced significant growth and attention due to the support from the government and the vibrant tech community.
This growth has created a ripple effect.
There are now 177 tech companies in Portugal covering 85 services and industries, and the numbers are on the rise. The most popular sector for start-ups is IT, followed by business services.
The political initiative is structured around five strategic pillars: inclusion, education, qualification, specialisation, and research.
Portugal’s rising prominence in artificial intelligence (AI) and machine learning is another significant attractor for candidates and companies.
The government has made substantial investments in R&D in these fields, and several universities and research institutions are now working on cutting-edge AI technologies. This focus on AI has positioned Portugal as a European leader, attracting international investors and companies to the region.
To further solidify its reputation as a tech hub, the Portuguese government launched ‘The National Initiative for Digital Skills 2030’.
The latest initiative is structured around five strategic pillars: inclusion, education, qualification, specialisation, and research. It aims to integrate these values into organisations and enhance the country’s visibility on the global stage and appeal to international investors and companies.
Deliberate Portuguese government investments have attracted global brands to open captive centres in PT, where the IT market has grown significantly (133%) in the last 10 years up to 2022 compared to other nearshoring locations.
