Gizane Campos
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.
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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.
Skilled Tech Talent
Skilled Tech TalentPortugal produces one of the highest numbers of engineering and STEM graduates in the EU, around 90,000 annually, placing it among the top three in Europe for engineering graduate output.
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.
Rapidly Expanding Ecosystem
Rapidly Expanding EcosystemLisbon is emerging as one of the fastest-growing tech ecosystems in Europe, with startup investments increasing by approximately 30% each year since 2016. This growth rate is roughly double that of most other European capitals.
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.
Government support for startups
Government support for startupsPortugal has positioned itself as a leader in Europe for supporting startups and scale-ups by implementing various public initiatives, legal reforms, and funding programs focused on innovation.
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
The Portugal Digital Nomad Visa, officially called the D8 Visa, is for non-EU/EEA remote workers wishing to live in Portugal while maintaining employment or contracts with companies outside the country. It’s open to both salaried employees and freelancers, as long as your income comes from abroad.
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.
Frequently Asked Questions About Portugal as the Silicon Valley of Europe
Why is Portugal being called the “Silicon Valley of Europe”?
Portugal, especially Lisbon, earned this nickname due to its booming tech ecosystem, large pool of affordable engineering talent, government support for startups, and a high concentration of international tech events like the Web Summit. It’s not a direct replica of California’s Silicon Valley, but it’s one of Europe’s most dynamic tech hubs.
What makes Lisbon so attractive to startups?
Lisbon combines a low cost of living, tax incentives, quality of life, and excellent infrastructure with a large supply of English-speaking tech talent. It also has fast company incorporation processes and strong public support for innovation, including grants and startup visas.
Which global tech companies have offices or operations in Portugal?
Companies like Google, Microsoft, Amazon Web Services, BMW, Siemens, and Cisco all have established operations in Portugal—mainly in Lisbon or Porto—due to favorable business conditions and access to skilled labor.
Is Portugal just for startups, or are scale-ups and enterprises thriving too?
Portugal is no longer just a startup launchpad. Several companies have scaled beyond local or regional markets. The government-backed Unicorn Factory Lisboa and a wave of venture capital funding are pushing companies through later growth stages as well.
How does Portugal compare to other European tech hubs like Berlin or Amsterdam?
Portugal offers lower startup costs and fewer bureaucratic hurdles than hubs like Berlin or Amsterdam. While it lacks the same level of venture capital funding, its growth pace and support infrastructure make it highly competitive for early-stage founders.
Can foreign entrepreneurs easily launch a startup in Portugal?
Absolutely. Portugal has streamlined business registration and offers specific visa pathways such as the D2 Entrepreneur Visa and Startup Visa. These programs make it easy for non-EU citizens to establish and grow businesses.
What are the risks or limitations of Portugal’s tech ecosystem?
Some of the challenges include lower availability of local venture capital, fewer large-scale exits or IPOs compared to bigger markets, and ongoing competition for top-tier technical talent from global companies.
