Silicon Valley in the US is where some of the world’s most influential technology companies are based. Powerhouses such as Apple, Amazon, and Google all have operations there or played a pivotal role in the region’s popularity.
However, it’s not the only place where tech giants are thriving. On the other side of the ocean, Portugal is quickly climbing the ranks as the “go-to” country for startup investment, innovation, and an abundant engineering talent pool. This has earned the country, and particularly Lisbon, the nickname of “Silicon Valley of Europe.”
In this article, we’ll explore why several cities in Portugal are attracting small and large companies globally, and how the region compares to its US-based namesake.
You’ll also find out more about:
- Why is Portugal the Silicon Valley of Europe?
- Dedicated visas for Entrepreneurs and Digital Nomads
- Portuguese companies expanding globally
Why is Portugal the Silicon Valley of Europe?
Portugal, especially Lisbon, is recognized as a rising tech hub and has earned the title of the “Silicon Valley of Europe” for its expanding startup ecosystem, a strong talent pool, and robust government support.
And increasingly, the country is attracting investments and companies, particularly in sectors like fintech and nearshoring, thanks to its skilled multilingual workforce, lower costs, and high quality of life.
These skilled professionals enter the market at lower salary levels than in Western Europe, making Portugal particularly appealing for nearshoring, where international firms like BMW and Microsoft locate engineering and R&D teams there to access top talent efficiently.
Institutions such as Startup Lisboa, Beta-i, Village Underground, and government-supported accelerators and incubators play a vital role in fostering early-stage innovation throughout the country.
Since 2016, Portugal has implemented several business-friendly reforms, including a streamlined company formation, allowing registration within 48 hours, and a €200 million support fund and tax incentives, which feature a reduced corporate tax rate of 23 percent.
Additionally, the Web Summit, a major global tech conference, relocated from Dublin to Lisbon in 2016 and has committed to remaining in the city through 2028. This move has significantly enhanced international visibility and engagement with the local tech ecosystem.
A key milestone in this progress is Law no. 21/2023, which defines what qualifies as a startup or scale-up and allows companies to receive official recognition within just five business days.
This designation provides founders with access to preferential tax regimes, such as a 14 percent stock option tax, and eligibility for national and EU incentives.
One of the most transformative developments in the financial landscape is the Startup Competitiveness Incentive System, introduced in 2025. This program offers non-repayable grants tailored to various stages of innovation, including a €60,000 voucher for deep tech startups that the European Innovation Council Accelerator has selected, as well as smaller grants ranging from €10,000 to €30,000 for those developing digital or tech-based products.
These incentives are not limited to Lisbon or Porto; for example, hubs like PACT (Parque Alentejo de Ciência e Tecnologia) in Évora illustrate the government’s commitment to decentralizing innovation by supporting over 50 tech-driven firms across sectors such as aerospace and digital health.
Dedicated Visas for Entrepreneurs and Digital Nomads
In addition to government incentives to encourage startup creation, several visas are available to attract international talent to Portugal.
D2 Entrepreneur Visa
The Portugal D2 Visa is a residency visa designed for non-EU entrepreneurs who wish to contribute to the Portuguese economy by buying an existing business or presenting a business plan for new ventures.
Unlike the Portugal Golden Visa program or Portugal D7 Visa (Passive Income Visa), the Portugal D2 Visa does not require a large investment or steady passive income. Instead, it focuses on business investment and a viable business plan or idea. The D2 Visa is flexible, accommodating various businesses, from small cafes to large real estate agencies.
There is no set minimum investment for the D2 Visa, but you must have sufficient financial resources to start and sustain your business and living expenses in Portugal for a year. The D2 Visa is valid for four months, during which you need to enter Portugal and apply for a residency permit.
After obtaining the D2 Visa, the residence permit is valid for two years and can be extended for three years. After five years of residency, you can apply for citizenship in Portugal and/or permanent residence.
D8 Digital Nomad Visa
It’s valid for up to one year, with the option to renew if you meet the requirements, and allows you to live and work from anywhere in Portugal, whether you prefer a co-working space, a beachside café, or your own home.
You can also travel freely within the Schengen Area, up to 90 days within any 180-day period, making it ideal for those who want flexibility across Europe.
Portuguese Companies Expanding Globally
When one thinks of birthplaces for international companies, Portugal might not immediately come to mind. However, the country has produced several businesses that have made their mark on the global stage, reinforcing the “Silicon Valley of Europe” name.
- Sword Health, founded in Porto in 2015, is a digital health company offering AI-enhanced physical therapy. By mid‑2024, it reached a $3 billion valuation and has already expanded its operations to the United States, Ireland, and the UK.
- Remote, founded in Lisbon in 2019, simplifies global employment by offering services for onboarding, payroll, and compliance in 150 countries. It raised nearly $500 million by early 2022 and quickly scaled to become a globally trusted remote-work platform.
- Talkdesk, a cloud call‑center solution, serves enterprise clients across Western Europe and North America and was valued at $1 billion in 2018.
- Feedzai, founded in Coimbra, now serves Europe, the US, and the UK, with offices in San Mateo and a presence in multiple Western European countries.
- Indie Campers, originally from Lisbon, offers motorhome rentals across multiple countries in Europe, North America, and Oceania.
- Sound Particles, founded by Nuno Fonseca, is audio‑production software used in Hollywood films like Game of Thrones and Star Wars. It’s opening an office in Los Angeles.
Exploring Visa and Immigration Options for Portugal
If you’re considering making the move to Portugal, it’s essential to be informed about the various visa and residency options available. The Golden Visa Portugal program is an attractive option for many, offering residency to investors and their families. For those eyeing retirement in this beautiful country, the Portugal D7 Visa is tailored for you. Digital nomads can take advantage of both short and long-stay options with the Digital Nomad Visa (D8).
For the entrepreneurial spirit, Portugal offers the Entrepreneurship/startup Visa (D2) – Start-up Visa (open company) tailored for those looking to establish their businesses in the country. Those with specialized skills can explore the Work visa for highly qualified employees (D3). Additionally, if you have Portuguese ancestry, you might be eligible for Citizenship by descent.
However, moving to a new country isn’t just about visas. If you’re thinking of buying property, our guide on Buying Property in Portugal can offer invaluable insights. Dive deeper into the immigration process with our comprehensive Portugal immigration guide. For Americans specifically looking to relocate, we have curated information on Americans moving to Portugal. Lastly, one can’t forget the importance of the NIF (Tax Identification Number), a crucial step in any relocation process.
