In recent years, Portugal has earned growing recognition among global investors, entrepreneurs, and digital professionals. Consistent economic reform, legal stability, and a strong talent base have positioned the country as one of Europe’s most competitive destinations for investment.
When evaluating where to establish or expand a company, many now ask whether Portugal is the best country for business in Europe. The answer increasingly points toward yes, particularly for those who understand Madeira’s strategic role within the national framework.
Here are seven reasons why investors share that view.
1. Strategic Gateway Between Continents
Portugal sits at the intersection of Europe, Africa, and the Americas. Its Atlantic position provides seamless access to the European Union’s single market, Portuguese-speaking countries, and transatlantic trade routes.
Major international airports, efficient logistics networks, and Atlantic ports make Portugal an ideal location for companies serving both European and overseas markets. Madeira offers an advantage, with direct air links to over 60 destinations and geographic proximity to global maritime routes.
2. EU Member with Legal and Political Stability
As a founding member of key international organisations, including the European Union, the OECD, and the Schengen Area, Portugal provides investors with exceptional legal certainty.
The country’s regulatory framework fully aligns with EU directives, offering predictable enforcement and transparent governance. Political stability and strong institutions ensure consistent policies that protect investors, companies, and intellectual property.
These characteristics make Portugal one of the most reliable jurisdictions for long-term investment planning.
3. Competitive Corporate Tax Environment
Portugal offers a modern corporate tax system supported by extensive double taxation treaties and clear anti-abuse standards. The general corporate income tax rate is 20%, but some regions apply reduced rates.
The Autonomous Region of Madeira stands out as the most competitive within the EU. Through its International Business Centre (MIBC), qualifying companies enjoy a 5% corporate tax rate on eligible income, coupled with exemptions on dividends, royalties, and interest paid to non-residents.
The MIBC framework, approved by the European Commission, remains one of the strongest legal instruments enhancing Portugal’s overall competitiveness as the best country for business in Europe.
4. Highly Skilled and Multilingual Workforce
Portugal’s workforce is internationally recognised for its technical expertise and linguistic ability. Universities and polytechnic institutes produce graduates in engineering, management, and technology who speak fluent English, French, and Spanish.
Labour productivity and cultural adaptability have attracted multinational groups to establish shared service centres and R&D operations in Lisbon, Porto, and Madeira. Salaries remain competitive compared to Western European averages, enabling businesses to balance talent quality with operational efficiency.
5. Dynamic Entrepreneurial Ecosystem
Portugal has become one of Europe’s most dynamic innovation hubs. Startup ecosystems in Lisbon, Porto, and Funchal foster collaboration between founders, investors, and accelerators.
Government initiatives such as “StartUp Portugal”, simplified digital incorporation processes, and favourable visa categories for entrepreneurs strengthen the environment. Madeira’s StartUp Madeira programme connects founders to financing and mentoring, while regional authorities provide tax and logistical support for new ventures.
This pro-business infrastructure contributes to Portugal’s growing reputation as a country where innovation and investment thrive.
6. Exceptional Quality of Life Supporting Business Relocation
Talent retention depends not only on salaries but also on the quality of living conditions. Portugal consistently ranks among the safest and most welcoming countries in the world. It offers an excellent healthcare system, international schools, and affordable housing relative to Western Europe.
For executives and families relocating, Madeira delivers an unmatched lifestyle. The island’s year-round climate, modern infrastructure, and low crime rate create a productive environment where personal well-being supports professional success.
Quality of life is often a decisive factor when choosing the best country for business in Europe, and Portugal consistently excels.
7. Comprehensive Support Framework for Investors
Investors in Portugal benefit from a transparent administration, professional advisory services, and clear tax compliance rules. Setting up a company can now be completed quickly through online platforms or with the assistance of qualified local service providers.
In Madeira, companies benefit from the additional advantage of operating within an ecosystem specifically designed for international business. The MIBC framework combines legal security with fiscal efficiency, providing simplified access to EU markets under Portuguese and EU supervision.
For investors, this means predictable costs, efficient reporting, and a trustworthy environment, all essential elements when managing cross-border operations.
Main Takeaway
Portugal’s growing recognition as one of Europe’s most attractive investment destinations is no coincidence. Its combination of EU membership, political stability, advanced infrastructure, and internationally competitive tax regimes positions it as one of the leading choices for global investors.
Madeira reinforces this position by offering a unique combination of low taxation, EU legitimacy, and high living standards. Together, these attributes explain why more professionals and corporations consider Portugal the best country for business in Europe.
Madeira Corporate Services (MCS) has more than three decades of experience assisting investors and companies in establishing, managing, and optimising their presence in Portugal and Madeira.
The founding of Madeira Corporate Services dates back to 1996. MCS started as a corporate service provider in the Madeira International Business Center and rapidly became a leading management company… Read more
