What Is the Economy Like in Portugal?

Tourism has boomed over the past decade, making Portugal one of Europe's most visited destinations. This growth brings both prosperity and challenges like rising housing costs in Lisbon and Porto.

The technology sector has expanded rapidly, with Lisbon becoming a European startup hub. Web Summit, the major tech conference, relocated to Lisbon, signaling the city's growing importance. Tax incentives have attracted tech workers and companies from higher-cost European countries.

Traditional industries include textiles, footwear, cork production (Portugal dominates global cork markets), and wine. Manufacturing and agriculture remain important, though services now dominate the economy.

Portugal uses the euro and benefits from EU membership while maintaining lower costs than Western European neighbors. This value proposition attracts tourists, retirees, and digital nomads seeking European quality at lower prices.