Foreign direct investment: Future changes to the Portuguese regime

Portugal has been an outlier with respect to its Foreign Direct Investment (FDI) regime – the regime is voluntary and notifications are rare. 

With the adoption of the revised EU FDI regulation by the EU Council of Ministers earlier this month, a wholesale amendment of Portugal’s FDI rules will be required.  We have identified below some of the key amendments that the Portuguese Government will need to adopt by early 2028.

This is our first instalment on how we expect the Portuguese FDI regime to evolve in the coming 18 months.  Given the central role that foreign investment controls are playing globally, the revised EU FDI regulation has given Portugal the opportunity to revisit its approach in this area.  The coming 18 months will be crucial in ensuring that the right balance is struck between a regime that meets broader EU-wide political aims, while at the same time ensuring that foreign investment continues to flow into Portugal.