The country attracted more than 29 million foreign visitors last year, with tourism accounting for about 12% of GDP. Foreign investment has surged after the government cut bureaucratic hurdles, while labor reforms made hiring and firing easier. Successive governments have struck a fine balance between austerity and growth, earning a reputation for fiscal discipline. Renewables now supply over 80% of the nation’s electricity, and gigabit-capable networks cover nearly the entire country.
Lisbon is also staking a strong claim in Europe’s digital future. Citizens use the GOV.PT app to access a wide range of public services, and Portugal ranks among Europe’s leaders in e-health. The digital economy now generates nearly a tenth of GDP and employs tens of thousands. A Copenhagen Economics study estimates that data centers already contribute over €300 million annually and support around 1,700 jobs; by 2030, they could add €4 billion a year and sustain nearly 50,000 positions.
Startups are flourishing. Portugal counts more than 4,700, spanning fintech, health tech, and beyond. They also pay better—on average 37% more than other domestic firms. A junior developer earns roughly €30,000 a year, while senior engineers and data scientists can reach €70,000 or more.
Geography adds to Portugal’s advantage. Its Atlantic coast hosts some of the world’s most critical subsea cables: EllaLink to Brazil, Equiano and 2Africa to Africa, and soon Google’s Nuvem to North America. Onshore, Sines on the southwest coast is emerging as a €8.5 billion renewables-powered data campus, cooled by seawater and promoted as Europe’s largest colocation hub for latency-sensitive industries from finance to AI.