Why Portugal is a great nearshore location

Anyone who had the opportunity to visit Portugal will appreciate and remember its great weather, delicious food, historic sights, beautiful beaches, and friendly people.

Portugal is an attractive and popular destination for travelers, but not just that. According to the EY European Attractiveness Survey 2022, it has been considered the 8th most attractive country for Foreign Direct Investment (FDI).

But why should you consider this “small” European country to be a nearshore location for your tech projects? In a previous article, we shared a few benefits and advantages of IT outsourcing in Portugal. In this post, we will delve deeper into this topic.

Education & Language

If you have ever been to Portugal, you probably noticed that most of the population can welcome you with a medium to advanced level of English. And it is all due to Portugal’s emphasis on education. 

The government has specific measures that encourage Portuguese students to learn English, French, Spanish, and even Chinese from an early age. 

In addition, Portugal provides financial support for its population to attend college, resulting in a highly educated workforce with many students holding a bachelor's or master's degree. 

In the last 10 years, tech recruitment in Portugal has increased drastically. According to Eurostat, it has the 3rd highest rate of Engineering graduates in the European Union, with around 90,000 students graduating each year.

Modern Infrastructure

Even though Portugal is a historic country, one of the oldest in Europe, its infrastructure is far from ancient. 

And that is another advantage of choosing to nearshore in Portugal: its modern and robust infrastructure. It has a vast network of roads, highways, airports, trains, and ports across the country. 

Not to mention, the internet speed and the quality of its telecommunications which facilitates digital innovation and collaboration with IT nearshore partners. 

Portugal ranks in the 33rd position among 166 countries in the Readiness for Frontier Technologies Index.

Safety & Political Stability

Portugal is ranked as the 7th most safe country in the world, according to the 2023 Global Peace Index.

Unlike other popular destinations in Africa and Asia, Portugal’s political stability and low crime rates ensure all the necessary conditions for a favorable nearshore operation for your software development projects.

Choosing a politically stable location for your operations means you won’t have to worry about switching any time soon, reducing bureaucracy, layoffs, costs, and overall concern for your business.

Foreign Friendly

Portugal is not just friendly for travelers. It's a very stable option for businesses too.

In addition to its secure political atmosphere, being part of the European Union makes Portugal a great option for nearshoring. Due to its strategic position in Europe, you don't have to worry about unnecessary bureaucracies and also benefit from foreign investment-friendly policies that the country offers.

For instance, during the first year of a new business in Portugal, no taxes are paid. Additionally, IT experts from outside the EU can take advantage of special visa-obtaining processes and programs.

Also, Portugal is famous for hosting many tech events, including Web Summit and many other international conferences, fostering incredible networking opportunities. 

So, if your business is based in Europe, you can still benefit from the EU's unified market and global trade links by nearshoring in Portugal.

Timezone & Location

Located at the edge of Europe, Portugal has a very favorable location, making it easy to reach international tech hubs all over the globe. 

It’s located near major markets like Germany, the United Kingdom, and the United States. In fact, Portugal is the closest European Country to the US, offering direct flights to New York and San Francisco.

Moreover, due to its history, Portugal has friendly relationships with Latin America and Africa through countries like Brazil, Angola, and Mozambique. 

Regarding timezone, its location allows for a short time difference of 1-4 hours from any European Country and around 5-8 hours to the US, enabling better collaboration.

If you are considering Portugal as your upcoming nearshore location, you will find that there is an overwhelming number of options, and choosing the right business partner can be challenging. 

At HumanIT, we provide the necessary guidance and expertise to help you find the right talent and build the right IT team for your tech projects. We also offer many advantages if you decide to partner with us, including:

• Different offices and locations;
• Extensive experience in different countries;
• A careers department dedicated to the well-being of our teams;
• Training programs for teams when necessary;
• Dedicated marketing department and office managers to deal with travel, expenses, bureaucracy, etc.

In case you'd like to see more statistics on Portugal’s nearshore market, we recommend this article.

Article written in collaboration with Priscila Correia.