Competitiveness - Why?

A highly competitive business hub

Porto is a city of business, entrepreneurship, innovation and culture, that welcomes companies and talent from all over the world.

Highly qualified talent, cost competitiveness, world-class research and innovation, business friendly environment, and excellent quality of life, infrastructure and accessibility. These factors, combined with its unique heritage and culture, make Porto an ideal place to invest, work, and live.

Cost Competitiveness

Access a Qualified Talent Pool at an Attractive Cost

In Porto you can find a skilled and well-educated workforce [Link] at a labor cost 20% to 60% below the European Union average.

According to the latest Eurostat data, the average hourly labor cost in Portugal ranks as the most competitive among Western European countries.

ITC

20 €/hour

- 45% EU average

R&D

19 €/hour

- 51% EU average

Tourism

9 €/hour

- 44% EU average

Support Services

8 €/hour

- 56% EU average

Average hourly labor cost in Portugal by business sector (Eurostat, 2018)

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Competitive Office Infrastructure

Porto is a very cost-competitive location in terms of office rent compared to other major cities in Western Europe.

According to Cushman & Wakefield (2019), average monthly rents range from 10€ to 15€ per square meter depending on the location.

Prime location rents range from 12€ to 18€ per square meter.

High Quality and Affordable Living

Porto is one of the best and most affordable cities to live in Western Europe [Link].

Porto has the 5th lowest cost of living among major Western European cities according to the latest Expatistan 2020 ranking.

Living in Porto provides cost savings ranging from 50% to 20% against comparable lifestyles in other major European cities such as London, Dublin, Amsterdam, Paris, Frankfurt, Berlin or Barcelona.

Sources: Eurostat (2018), Cushman & Wakefield (2019), Expatistan - International Cost-of-Living February 2020 Ranking

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Business and Investment Friendly

The Financial Times has considered Porto the 3rd Best City to invest in Southern Europe (2014-2015) and the 5th Best Mid-Sized European City for FDI Strategy (2020-2021).

The Portuguese economy ranks as the 34th most competitive among 141 world economies according to the World Economic Forum’s Global Competitiveness Report (2019).

According to the World Bank, Portugal ranks as 39th best location among 190 world economies in Ease of Doing Business (2020).

In 2019, Fitch upgraded Porto's long-term debt rating to BBB with a positive outlook.

Porto offers a safe and stable environment to do business and attractive investment incentives [Link], recognized with fDi Intelligence’s FDI Strategy Awards 2018.

Doing business is easy, simple and accessible. It’s possible to set up a company in 45 minutes and register a property in 1 day.

Portugal is considered a case study in e-Government, by the United Nations, with many public services available online.

A city open to foreign cultures, that excels at integrating immigrants.

Sources: Financial Times/fDi Intelligence; World Bank – Doing Business 2020; World Economic Forum - The Global Competitiveness Report 2019; Fitch 2019.

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Innovation and export-driven economy

Porto and Northern Portugal have remained at the industrial and technological core of the Portuguese economy, producing highly competitive products and services for global clients.

The region accounts for 29% of Portugal’s Gross Domestic Product (2017) and 39% of Portuguese goods exports.

Porto’s leading sectors [Link] include ICT, Nearshore Services, Advanced Engineering, Creative Industries, Health and Life Sciences, and Mobility Industries. Other industries such as real estate, wine and agro-food are also attracting a growing amount of investments.

Sources: Instituto Nacional de Estatística (2019).

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