27 Sep 2022
Despite the moment of great global instability, the projects exist and investors know that they cannot stop. They cannot stop because it is not in the investors DNA and they cannot stop because in periods of inflation stopping is equivalent to losing money. Worse, means having real losses which, as they only correspond to the intrinsic value of the currency, cannot be reflected for tax or accounting purposes, exponentiating their effects.
In this framework investors have to look for countries that allow projects to flourish despite geopolitical, health and economic uncertainties.
Portugal has adequate meteorological conditions (not only to go to the beach, but also so that the means of transport do not stop because of a heavy snowfall or a tornado), human resources with the adequate academic and technical background, and a geographical position in which, if we look at the world through the binomial Europe/America, it is in the centre.
Besides, Portugal has privileged relations with several African countries, which makes us an excellent platform for those who want to expand to those markets.
Portugal is, without a doubt, in the front line of countries that meet the necessary conditions to be a destination for investment projects, both for those who have never invested in Portugal and for those who already invest but want to deepen their relationship with the country.
According to the barometer of the North American Chamber of Commerce in Portugal (AmCham) 75% of the American companies already present in the Country foresee a growth in their business volume. More importantly, 78% of this universe (made up of around 1,000 companies) foresee more investments in Portugal by 2023. This shows the confidence that these multinational companies have in Portugal.
With regard to new projects, AIRBUS has started a major industrial operation in Portugal. Despite the initial phase of the project, it already admits the possibility of investing in a second industrial unit in the very near future. This is another sign that those who arrive find a favourable environment for investment and the necessary conditions to generate results and added value.
Equally, we must look at the more traditional sectors with innovative “eyes”. During this year, two Japanese companies created a joint venture in Portugal to provide an artificial intelligence solution to support the production of industrial tomatoes. This investment not only has immediate economic advantages, but also mediate ones, with the transfer of know-how and specialised skills to Portugal. Furthermore, these products and services are easily exportable, so it is expected that these companies will use Portugal as a platform for expansion into other European markets.
National companies have shown a growing sensitivity to the efficiency gains that joint projects can bring and are reaching a state of maturity that allows them to see other economic agents not only as competitors, but also as potential partners.
Another example of dynamism is related to investment funds and their assets under management. According to data made available by the CMVM, last July there was an increase of 0.6% (65.9 million euros). In detail, this was the behaviour registered by the investment and asset management funds in Portugal:
- in property investment funds (FII) the amount invested grew by 0.5% to almost 8.2 billion euros;
- in special real estate investment funds (FEII) the value reached 2389.6 million Euros, more 0.8% than in the previous month
- In the Real Estate Asset Management Funds (FUNGEPI) the value rose 0.9% to 315.6 million Euros.
Even after the reformulated measures and contingencies imposed by the Government regarding the Golden Visa programme, since the beginning of 2021 the increase in investment, both individual and corporate, shows no signs of slowing down.
Martinez-Echevarria & Ferreira has at your disposal professionals with the technical capacity to help you find the solution that best suits your personal situation, and to properly structure, economically and fiscally, your economic and family activity.
