Portugal Market Entry

Portugal Market Entry

Subchapters:

  • Market entry
  • Forms and conditions of operation on the market
  • Marketing and Communications
  • Issues of intellectual property protection
  • Public procurement market
  • Payment terms, payment ethics and resolution of commercial disputes
  • Visas, fees, specific conditions of travel to the territory
  • Employment of citizens from the Czech Republic
  • Fairs and events

Market entry

As part of the EU single market, Portugal is closely linked to its traditional suppliers – Spain, Germany, France and other EU member states. Those interested in exporting to Portugal can be advised to establish partnerships with strong local companies, which can also help to penetrate some African territories, especially Angola, Mozambique or other former Portuguese colonies. Also, participation in tenders announced in Portugal without a strong domestic and local relations of a well-informed partner usually does not have a great chance of success. Check smber for agriculture and fishing facts of Portugal.

The distribution and sales network currently achieves one of the highest levels of centralization within the European Union states. For the possible implementation of consumer goods on the Portuguese market, it is therefore more advantageous to establish direct business relations with the largest companies in the field of hypermarkets – Makro, Jumbo (Auchan group), Modelo-Continente (Sonae group), Pingo Doce (Jerónimo Martins group) or with distribution and sales companies and associations.

Forms and conditions of operation on the market

The most common legal forms of business entities in Portugal are the equivalents of Czech s.r.o. or OSVČ. Similarly, there are other types of legal forms, as we know them from the Czech Republic, even with all comparable requirements, advantages and possible disadvantages. The role of a solid sales representative on the local market is invaluable from the point of view of the Czech exporter, while its specific legal form is not important from the point of view of the implementation of business cases.

The process of setting up a trading company in Portugal has several stages:

  • Definition of the company’s activity and its name
  • Determining the date in the public document for the establishment of the company
  • Signature of a public deed at a notary (however, the company can also be established online at www.empresanahora.pt or www.portaldaempresa.pt)
  • Determination of the beginning of activity and registration as a tax payer
  • Registration with the commercial register
  • Registration with the Social Insurance Administration

On the website of the state agency AICEP, you can find more detailed information regarding the business of natural and legal persons in Portugal. Other useful information is also available, for example, on the website of the Expatica agency.

Marketing and communication

Recommended advertising agencies

Havas Portugal
Tel.: +351 218 910 600
E-mail: [email protected]
Web: https://pt.havas.com/

Fuel
Tel.: +351 218 937 110
E-mail: [email protected]
Web: https://www.fuel.pt/

VMLY&R
Tel.: +351 213 127 300
E-mail: [email protected]
Web: https://www.vmlyr.com/pt-pt/portugal

Partners
Tel.: +351 213 703 070
E-mail: [email protected]
Web: http://partners.pt/

BAR Ogilvy
Tel.: +351 967 181 300
E-mail: [email protected]
Web: https://barogilvy.pt/

Recommended PR agencies

Global Press
Tel.: +351 213 944 020
E-mail: [email protected]
Web: https://global-press.com/

Key Message Comunicação Estratégica
Tel.: +351 962 525 045
E-mail: [email protected]
Web: http://keymessage.pt/

Lewis
Tel.: +351 210 415 952
Email: [email protected]
Web: https://www.teamlewis.com/

Adagietto
Tel.: +351 210 737 700
E-mail: [email protected]
Web: https://www.adagietto.pt/

Pondera
Tel.: +351 213 933 690
E-mail: [email protected]
Web: https://www.pondera.pt/

Recommended HR agencies

Michael Page
Tel.: +351 210 419 110
E-mail: [email protected]
Web: https://www.michaelpage.pt/

Hays
Tel.: +351 217 826 560
E-mail: [email protected]
Web: https://m.hays.pt/

ManPower
Tel.: +351 300 032 623
E-mail: [email protected]
Web: https://www.manpowergroup.pt/

Randstad
Tel.: +351 800 244 244
E-mail: [email protected]
Web: https://www.randstad.pt/

Egor
Tel.: +351 213 896 300
E-mail: [email protected]
Web: https://egor.pt/

The trend of recent years is the increasing investment of large companies in advertising in the digital space. Although companies continue to advertise in traditional media such as television, radio or print media, they are increasingly betting on digital channels and social networks such as Facebook and Instagram. As the number of sports and cultural events in Portugal has been increasing in recent years, the volume of traditional and digital advertising of the brands that are among the sponsors of these events is also increasing. Classic billboards also retain their place on the market.

Portugal is a modern country and very open to new approaches to advertising. Humor and the use of imaginative contexts are increasingly being promoted in advertisements. When it comes to the most common mistakes in marketing strategies, there are no specifics in the case of Portugal, but rather shortcomings that are generally true in Western markets. These include, in particular, insufficient definition of the target audience, problematic measurement of the return on investment in advertising, the inability to clearly present the company’s goals and insufficient follow-up after the implementation of the marketing campaign.

Issues of intellectual property protection

The intellectual property protection system in Portugal is determined by European Union legislation and international treaties to which Portugal is bound. Portugal is also a member of the World Intellectual Property Organization (WIPO) in Geneva.

Trademarks, patents and designs are registered with the National Institute of Industrial Property (Instituto Nacional da Propriedade Industrial – INPI ). Copyright protection is handled by the General Inspection of Cultural Activities – (Inspecção Geral das Actividades Culturais – IGAC ). All Community trade marks and designs registered with the Office for Harmonization in the Internal Market (OHIM) are valid in Portugal. Portugal also recognizes trademarks registered under WIPO.

Since 2012, Portugal has had a specialized court dedicated exclusively to the protection of intellectual property. Another way to resolve intellectual property disputes is before the Arbitration Center for Industrial Property, Domain Names and Company Names – ARBITRARE. Arbitrations may be conducted in Portuguese or English, including online.

Public procurement market

The public procurement regime is applied in Portugal similarly to other EU member states. It is mandatory to publish the contract in at least one national newspaper and in the Diário da República (Collection of Laws). From this point of view, projects that are a priority in terms of government investment programs are particularly important. They are mainly focused on building and modernizing infrastructure and the environment. The reality remains that companies that work closely with local entities have significantly greater opportunities to participate in projects within the framework of public procurement, as they know local customs much better and have the necessary personal contacts.

Large tenders with international participation are announced by the Portuguese government and ministries on the EU Tenders Electronic Daily website, so we can only recommend their ongoing monitoring. All public contracts (of national and local importance in all fields) are published on the specialized government portal Base. However, privately operated portals such as Vector 21, which requires paid registration, but enables searching and sending current information via e-mail, are more transparent. AcinGov is also a similar portal.

The rules for signing up for tenders are different in individual cases and depend on specific conditions, similar to the requirements for submitting documentation.

Payment terms, payment ethics and resolution of commercial disputes

Payment terms in business transactions tend to be standard and their gradual relaxation occurs in the case of long-term business relationships. Czech companies report problems with the payment morale of their Portuguese partners only sporadically.

The standard maximum maturity period for invoices is 60 days, but it can be contractually reduced or extended.

When concluding business contracts, it is recommended that these contracts contain a clause on the determination of the applicable law and the place of dispute resolution. If this information is not mentioned in the contract, Regulation No. 1215/2012 on Jurisdiction and the Recognition and Enforcement of Court Decisions in Civil and Commercial Matters and Regulation No. 593/2008 on the Law Applicable to Contractual Matters can be used for disputes between citizens of the European Union commitment relationships.

In 1993, the Czech Republic concluded a bilateral Agreement on the Protection of Foreign Direct Investments with Portugal. In the event of an investment dispute, the investor should first try to resolve the dispute amicably. If the situation cannot be resolved in this way and if this situation lasts for more than 6 months, the investor has the right to turn to the court in the place of his investment or he can turn to the International Center for Settlement of Investment Disputes (ICSID) or he can use ad hoc arbitration with UNCITRAL rules.

If necessary, you can contact the Portuguese Bar Association:
E-mail: [email protected]
Tel.: +351 218 823 550
Fax: +351 218 862 403

If you do not know a foreign language, you can use the services of the Portuguese law firm JUDr. Tatiana Kytkova ([email protected], +351 913 834 311), with whom it is possible to communicate in Czech/Slovak.

Visas, fees, specific conditions for traveling to the territory

The regime of free movement of persons within the EU applies to entry and stay in Portugal. Citizens of the Czech Republic can thus enter Portugal with a valid passport or a valid identity card. When staying longer than 90 days, it is necessary to apply for registration at the place of residence. More information is available on the website of the foreign police SEF.

Portugal was the fourth safest country in the world in 2021 according to the Global Peace Index (GPI), after Iceland, New Zealand and Denmark. In places with a high concentration of tourists, however, it is advisable to exercise caution due to the occurrence of pickpocketing.

The network of accommodation facilities is very varied and rich in all price levels.

The country is part of the Eurozone, the use of payment cards is widespread.

Tap water is potable throughout Portugal.

For shorter distances, it is recommended to travel by public transport, or use taxi services (including Uber, Bolt, etc.). There is the possibility of renting cars including insurance at airports and other places at prices comparable to the Czech Republic. To move from Lisbon airport to the city center you can use the metro. From the center to the Embassy of the Czech Republic, the most convenient connection is bus no. 714 (stop Rua Pero Alenquer).

Employment of citizens from the Czech Republic

As a member of the European Union, Portugal applies EU legislation on its territory that allows free movement of workers. When registering with the relevant tax office and social security office, it is necessary to present a valid identity document. Since 2006, citizens of the Czech Republic do not need a work permit in Portugal to apply for employment. Health care in the public health system is available on presentation of the European health insurance card. Also, access to social care is provided to other EU citizens in the same way as if they were citizens of Portugal.

In 2022, the minimum wage is EUR 705, the average gross wage in 2021 was EUR 1,361.

Fairs and events

The most important fairs and exhibitions in Portugal

Exhibition center FIL Lisbon

Nauticampo – International Trade Fair for Recreational Boating, Adrenaline Sports, Caravans and Pools, 16-20/02/2022
BTL – International Trade Fair for Tourism, 16-20/03/2022
Tecnipão – Professional Trade Fair for Machinery, Equipment and Ingredients for Bakery and Confectionery industry, 27-29/03/2022
Futurália – Fair of studies and employment opportunities, 30/03-2/04/2022
Expojardim – Fair of machinery, equipment, products and accessories for the garden, 07-04-9-2022
Portugal PrintPackaging and Labeling, 7-9/4/2022
Tektónika – International Construction Fair, 12/15/5/2022
SIL – Portuguese Real Estate Fair, 12/15/5/2022
PET FESTIVAL- Pet Festival, 20-22-05-2022
FIA LISBOA – International Crafts Fair,
25-06-03-07-2022 Portugal SmartCities Summit, 11-13-10-2022
Lisboa Games Week, 17-20.11/2022

The Web Summit, which is one of the largest international technology and startup conferences in the world, is also taking place on November 1-4, 2022 at the FIL exhibition center in Lisbon.


Exhibition center EXPONOR Porto

EXPO COSMÉTICA – Cosmetics, Nail and Hairdressing Fair, 2 – 4 April 2022
QUALIFICA – Education, Youth and Employment Fair, 20 – 23 April 2022
EXPORT HOME – International Design and Real Estate Fair, 21 – 24 4. 2022
360 Tech Industry – International trade fair for Industry 4.0, robotics, automation and composite materials, 26.–
27.5.2022 PORTO JÓIA – International trade fair for jewelry and watches, 22.–
25.9.2022 HOMOEING – Fair for home design, 29 September – 1 October 2022
IN BEAUTY – International trade fair for aesthetics, cosmetics and hairdressing, 8 – 10 October 2022
CONCRETA– Fair of construction, reconstruction, architecture and design, 13 – 16 October 2022
MAQUISHOES -EXPOCOURO – Fair of machines, technologies and accessories for the footwear industry, 10 – 12 November 2022
FIMAP – International fair of machines, accessories and services for wood industry, viticulture and forestry, 10 – 12 November 2022
MAQUITEX – International exhibition of machines, technologies and accessories for the textile and fashion industry, 10 – 12 November 2022

Portugal Market Entry