1. Air Transport Grows 6% at the Start of the Year. Portuguese Airports Welcomed 4.2 Million Passengers in January

In January, Portuguese airports welcomed 4.2 million passengers, marking a 5.9% rise compared to the same period in 2024. France led as the primary country of origin and destination, followed by Spain and the UK. The average daily arrivals reached 65,600, a historic figure reflecting a 6.8% increase. Meanwhile, 81.1% of the arrivals were international, with Europe as the main origin (63.2%), and the American continent second.

Passenger traffic to European countries accounted for 66.4% of departures, growing 4.1%, while 10.3% of passengers headed to the Americas. Cargo and mail saw a slight decline of 0.5%, totaling 18.2 thousand tons. Note, however, that, despite these variations, air transport continued to grow, with Lisbon Airport handling 56.9% of total traffic, reflecting a 6.9% increase from last year.

In terms of specific airports, Porto followed Lisbon with 22.4% of passengers, while Funchal showed the highest growth, up 9.3%. France maintained dominance as both the main origin and destination, while Spain and the UK swapped positions in terms of origin and destination. It is important to consider that this growth indicates the continued importance of international connections, especially within Europe and the Americas.

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2. Political Earthquake, Government’s Collapse, and New Elections – What to Expect Before May 18

A political earthquake has shaken Portugal, leading to the collapse of the Government and the announcement of early legislative elections for May 18. The country faces a tense political environment, with parties divided over the causes of the crisis, which was sparked by suspicions surrounding the Prime Minister’s family business. The Portuguese President, Marcelo Rebelo de Sousa, emphasized the importance of a “clear, frontal, clarifying” election debate, calling for a peaceful transition similar to the one of 2024. Until the new elections, the interim Government operates with limited power, unable to make decisions with long-term impact.

As the political deadlock continues, the outcome of the May elections remains uncertain, with no party appearing to have a clear advantage. Political campaigns are expected to focus on leadership and ethics, as parties grapple with the future of the country, its democracy, and its economy. The Socialist Party, led by Pedro Nuno Santos, blames the Prime Minister for the crisis and urges the electorate to choose a “durable” Government, while PSD, the party that was in power, blames its Government’s success for the opposition’s actions that led to the crisis.

With less than two months between the rejection of the motion of confidence and the elections, Portugal enters a new electoral cycle with an uncertain path ahead. The Liberals, Left Bloc, and Chega also express concerns about the future, while calling for a focus on presenting solutions rather than blame. The key to the upcoming elections lies in resolving the crisis of governance, with parties facing the challenge of securing a stable and effective Government to address the pressing needs of the Portuguese people.

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3. Fitch Maintains Portugal’s Rating, Political Crisis Weighs on Decision

Fitch maintains Portugal’s A- rating, with a positive outlook despite the political crisis. The agency emphasized concerns over early elections, which could undermine Portugal’s fiscal position, hinder the Recovery and Resilience Plan (PRR), and delay critical projects. Despite these risks, Fitch’s decision reflects Portugal’s strong fiscal discipline and the anticipated resilience of its economy. However, instability from the political crisis might affect economic confidence, potentially slowing growth and investment.

Political volatility and external risks are key concerns, as Fitch highlighted the potential impact on the PRR’s execution and overall economic performance. The agency noted that challenges like trade tensions and geopolitical issues could harm exports, contributing to a less favorable external environment. Nevertheless, Fitch maintains a positive outlook, citing Portugal’s expected continued debt reduction and robust economic growth, with a projected acceleration of 2.3% this year.

Despite the political uncertainties, Fitch predicts that either PS or PSD will likely form the next government, maintaining prudent fiscal policies. Apart from that, Portugal’s budgetary performance remains stronger than most European peers, with moderate surpluses expected. Note that Fitch’s decision follows positive ratings from DBRS and S&P, with Moody’s next in line to assess the country’s creditworthiness in May.

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4. Óbidos Chocolate Festival Brings Revolutionary Spanish Chef Jordi Roca for a Masterclass

From March 21st to April 6th, the village of Óbidos will be filled with everything related to chocolate, such as a chocolate caravel, chocolate cocktails, and chocolate fossils. It may sound like a dream, but this will be the reality for the 22nd edition of the sweetest festival in Portugal. The festival promises to showcase how innovation and indulgence can go hand in hand, with over 90 national and international chefs and 85 tons of chocolate. The festival kicks off on March 21st with a variety of activities for all attendees.

A major highlight right at the start of the festival is a masterclass by Spanish chef Jordi Roca, from the revolutionary El Celler de Can Roca restaurant in Girona. With three Michelin stars and one green star, Roca will be in Óbidos to present his innovative immersive perfume line inspired by his confections, and he will also speak about his work. However, Roca will not be the only chef to attend.

In addition to famous chefs, the International Chocolate Festival will feature 80 hours of showcooking, chocolate fossils for children, and 7 competitions, including “Best Chocolate Product 2025” and “Best Chocolate Cocktail 2025.” There will also be a Molecular Laboratory, where families can participate in a workshop to learn new techniques for chocolate-making. Additionally, the festival will also feature a chocolate market and a chocolate sculpture laboratory that will showcase figures from science, such as Albert Einstein and Leonardo da Vinci’s Vitruvian Man.

Where? Óbidos (near the castle). When? From Mar 21 to Apr 6, Friday to Sunday, from 11am to 9pm. How much? Between 6 and 45 euros.

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5. TAP Marks 80 Years with Promise to Maintain Portuguese Identity and Focus on Brazil

TAP, the Portuguese airline founded on March 14, 1945, celebrated its 80th anniversary with a ceremony at the BTL (Better Tourism Lisbon) tourism fair in Lisbon. Despite its ongoing privatization process, TAP is committed to maintaining its Portuguese identity, as emphasized by Mário Chaves, the chief operating officer. “TAP is Portugal,” he stated, adding that its iconic brand, colors, and essence remain intrinsically linked to the nation. Although the company’s focus on Brazil continues, TAP is exploring new markets, particularly in the United States, where recent investments are already bearing fruit.

Note that the airline is currently undergoing a restructuring process amidst the challenges of operating in an overcrowded airport, limiting its expansion options. Mário Chaves assured that TAP is exploring alternative growth avenues, remaining adaptive as it has for 80 years. TAP’s expansion includes new routes such as Porto-Boston, and the company is evaluating further markets for more flights. Despite facing obstacles, TAP’s commitment to growth and its distinctive role in the national economy remain unquestionable.

In addition to celebrating its anniversary, TAP launched a new “Tier for Life” status in its Miles & Go program, rewarding long-time customers with lifetime benefits. A commemorative book, “Voar É Preciso”, showcasing TAP’s 80-year history, was also presented. The airline, with its notable action on the economy and global presence, continues to focus on delivering excellence. The message is that, while TAP navigates these transitions, it is clear that it will adapt, maintaining its essential link to Portugal while, at the same time, seeking new possibilities.

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6. Conditions Seem to Be in Place to Establish AI Factories in the Country

Portugal is positioned as a critical data corridor between Europe and the South Atlantic, with the country’s growing connectivity and renewable energy paving the way for it to become more than just a transit point. Equinix’s Carlos Paulino sees this as the “moment of opportunity” for establishing data centers tailored to the AI era. But, despite Portugal’s strategic location and advancements in infrastructure, it still lags behind countries like Spain, which moved faster in attracting such investments. However, with evolving trends in data storage and renewable energy, Portugal has the conditions to establish digital factories – processing and retaining data locally.

Equinix’s Lisbon data center is nearing full capacity, and with a second facility almost completed, the company is doubling down on its commitment to Portugal’s digital future. The country’s potential, combined with ongoing developments like the energy partnership with Sonnedix, makes it an attractive destination for high-density power projects required by emerging AI demands. As Paulino notes, the challenge remains in the unpredictability of licensing, something that could hinder further investments. Still, Portugal’s remarkable geographical coverage and connectivity make it a significant player for future growth in the digital and AI landscape.

Although, despite the progress, licensing and regulatory challenges persist, as municipalities still struggle to grasp the complexity of data center operations. Nevertheless, Paulino expresses confidence in Portugal’s future, believing that with continued efforts and clearer regulations, the country can become a hub for AI, quantum computing, and other disruptive technologies. While Spain currently outpaces Portugal, the landscape is shifting, and new competitors only highlight the growing vitality of the market, positioning Portugal for a bright and innovative future.

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7. Portugal and Spain Together Form the World’s Largest Tourism Platform

Portugal and Spain, together, form the largest tourism platform in the world, with Portugal welcoming 30 million tourists in 2024 and Spain 94 million. Anabela Freitas from Turismo Centro de Portugal, speaking at the BTL Tourism Fair, stressed the importance of cross-border cooperation between Centro, Alentejo, and Extremadura. “We must work together to position ourselves as the largest tourism platform,” she affirmed, emphasizing the strategic collaboration between these regions to enhance their visibility on the global tourism map.

Jesus Vinuales from Extremadura highlighted the region’s partnership with Portugal, calling it “the differentiating factor” for tourism in the Spanish region. He pointed out that this cooperation allows travelers to explore two countries in one trip, reversing the historical divide between them. José Santos from Turismo do Alentejo added that this partnership is a “unique opportunity” to transform regional potential into a commercial asset, boosting competitiveness, especially during low-demand seasons. He stressed that the regions’ shared cultural and territorial continuity is a powerful advantage.

Plans for 2025 include a series of promotional actions in Madrid and Lisbon, targeting media and the general public, with an additional business meeting set for November in Elvas. Note that these initiatives will promote natural spaces like national parks, biosphere reserves, geoparks, lakes, and cultural landmarks such as UNESCO World Heritage sites, historic villages, and castles. The partnership also focuses on gastronomy and wines, giving travelers the opportunity to immerse themselves in two rich cultures while exploring diverse landscapes in a single destination.

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8. Autoeuropa to Manufacture New Low-Cost Electric Car

Autoeuropa has been selected by Volkswagen to manufacture the ID.Every1, an electric vehicle priced at approximately 20,000 euros (for the German market). This decision marks a historic moment for Portugal, as the production guarantees the future of the Setúbal unit and its integration into the European green reindustrialization. The new model, aimed at the European market, was chosen after competition between Autoeuropa and factories in Poland and the Czech Republic. Note that, with this move, Volkswagen signals its commitment to electrification and sustainable mobility in Europe.

The ID.Every1 production aligns with Volkswagen’s ambitious goal of launching nine new models by 2027, including four electric vehicles built on the MEB platform. The Portuguese Minister of Economy, Pedro Reis, highlights the importance of this project, which will boost the Portuguese economy and ensure long-term benefits for the national supply chain. This investment enhances Portugal’s role in shaping the future of electric mobility, reinforcing the country’s strategic position within the European automotive sector.

It is important to consider that Autoeuropa’s success in securing this project is linked to Portugal’s advantageous location, particularly in relation to PowerCo’s battery factory in Sagunt, Spain. The decision to produce the ID.Every1 in Portugal was further reinforced by the availability of competitive production costs in the Iberian Peninsula, compared to other European options. As the European automotive sector moves toward greener solutions, Autoeuropa’s new role will catalyze Portugal’s growing influence in the electric vehicle market, contributing significantly to the region’s green industrial transformation.

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9. Seventeen of Lisbon’s Twenty-Four Parishes Have Illegal Immigration Networks Operating

The Lisbon Investigation and Criminal Prosecution Department (DIAP) is investigating more than 40 cases involving fraudulent residence certificates, with 17 of Lisbon’s 24 parishes identifying illegal immigration networks. These networks facilitated the issuance of fake addresses and false testimonies. The main operation, centered in Penha de França, was a network led by Hindustani figures that aided immigrants in obtaining essential documents for legalizing their status in Portugal. Note that these schemes involve thousands of immigrants registered at fraudulent addresses.

Sofia Oliveira Dias, the Penha de França parish president, uncovered the operation after noticing a high volume of Bangladeshi citizens requesting certificates for the same address. The Judicial Police discovered that two apartments in one street had a total of 4,349 “residents,” paid for using real residents’ addresses in exchange for 50 to 70 euros, and witnesses received 10 to 20 euros per fraudulent testimony. This scheme spanned over 71% of Lisbon’s parishes, including Penha de França, Arroios, Beato, and Marvila, with more cases suspected in various other areas.

In response to the rising number of cases, Lisbon’s parishes tightened their regulations on issuing residence certificates. A new alarm system was introduced to flag suspicious requests, and in-person testimonies and the prohibition of copying forms have become standard procedures to prevent fraud. However, this does not seem to be enough and the investigation continues as authorities address the illegal immigration networks operating in the city.

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10. The Marvila Bakehouse Wants to Bring More People to “Brunch” in Marvila

The Marvila Bakehouse, opened in April 2024 at 8 Marvila, offers slow-fermented bread and a variety of pastries, such as croissants, basque tarts, and cakes. The café, with a spacious kitchen and large terrace, produces not only for itself but also for two other restaurants – Dear Breakfast and Taqueria Paloma. Julien Garrec, the French entrepreneur behind these businesses, highlights the perfect location in Marvila for both production and serving customers, aiming to provide fresh, high-quality ingredients sourced through partnerships like Equal Food, an organization that collects and sells imperfect products from local producers at a discount rate of up to 40%.

At The Marvila Bakehouse, the menu centers around sandwiches, focaccia, bagels, and signature items like French toast with banana and chocolate or pancakes with pistachio. The brunch and breakfast offerings include a set menu, featuring options such as scrambled eggs with avocado, bacon, and tomato pulp, or French toast. Accompanied by sides like chips or salad, these dishes combine rich flavors and a cozy atmosphere, further enhanced by the café’s partnership with local suppliers like Flor da Selva for coffee.

Note that the café also welcomes pop-ups every month, inviting new culinary experiences from local restaurants and brands. This dynamic model aims to bring more people to Marvila, creating a destination that encourages community, creativity, and a shared appreciation for good food. The goal is to transform the area into a lively hub with easy parking and a vibrant weekend crowd, welcoming both residents and visitors alike.

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1. Measles Is on the Rise in Europe, But Portugal Only Has One Reported Case

Europe is experiencing a resurgence of measles, with countries like Spain reporting 107 cases this year and Austria, Germany, and the Netherlands following suit with rising numbers. The WHO has warned that Europe saw a 200% increase in cases in 2024, with the region going from 100,000 to over 300,000 cases. In contrast, in Portugal, it remains under control, with only one reported case in 2025. The DGS (General Directorate of Health) confirmed that this case was “imported,” originating from another European country. Thanks to high vaccination coverage, Portugal is seeing less probability of large outbreaks.

Note that the rise in measles cases across Europe is attributed to the stagnation of vaccination coverage following the COVID-19 pandemic, compounded by the growth of anti-vaccine movements. However, Portugal’s vaccination rates remain high, with the first dose of the MMR vaccine reaching 98%. The DGS stresses that while small outbreaks can occur, large-scale incidents are not expected due to the country’s strong vaccination programs.

Despite small outbreaks like the 35 cases in 2024, the DGS assures that Portugal has “eliminated the disease” and does not anticipate major threats. However, as mentioned, the situation in Europe, particularly in countries with lower vaccination rates, is much more concerning. Measles can still cause severe complications, including pneumonia and encephalitis, especially in unvaccinated individuals. Thus, the DGS encourages anyone with suspected measles to contact the SNS24 helpline for assistance.

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2. Portugal Among the Top 15 European Countries for Most Gender-Equal Governments and Parliaments

Portugal is among the top 15 European countries for gender parity in both government and parliament, according to Eurostat. On the Executive side, with 40% women in the government, Portugal ranks above the European average of 35.1%. Note that the country saw the second-largest increase in Europe, rising by 25.7 percentage points since 2014. Finland leads with 60%, while Hungary has no women in its government.

In parliaments, the trend is similarly positive, with women holding 33.4% of seats across Europe, a 5.6 percentage point increase from a decade ago. Portugal, with 35.8% women in the Assembly of the Republic, ranks 11th. Countries like Sweden, Finland, and Denmark lead with the highest representation of women, while Hungary, Cyprus, and Romania show the lowest numbers.

It is important to consider that Portugal’s rise in gender equality within political institutions places it among the most improved countries, with significant improvements made in both governance and legislative representation. The country’s commitment to gender parity, continuously surpassing European averages, signals ongoing progress in achieving political equality.

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3. The Ongoing Political Crisis and the Imminent Fall of the Government

The political crisis in Portugal, largely driven by the controversy surrounding Prime Minister Luís Montenegro’s family company, Spinumviva, is likely to lead to early elections. The Parliament rejected two motions of censure against the Government, including the PCP’s motion and Chega’s in February. However, the PS’s decision to request a Parliamentary Inquiry into the company put additional pressure on the Prime Minister. In response, as stated above, Montenegro announced a motion of confidence in the Government. With both PS and Chega planning to vote against it, the motion is expected to be rejected, leading to the Government’s collapse.

Note that the failure to approve the motion of confidence, as outlined in the Constitution, would trigger the resignation of the Government. Given the fragmented political situation, President Marcelo Rebelo de Sousa has already stated that early elections could take place on May 11 or 18. The President emphasized the importance of staying in the country to oversee the process and has canceled a planned visit to Estonia. He clarified that he would consult the parties and the Council of State before calling for elections if the motion is defeated.

The timeline for the crisis is set to unfold as follows: On March 7, the Council of Ministers is expected to approve the motion of confidence and submit it to Parliament. The debate and vote are likely to take place on March 12. On March 13, the President will meet with political parties, followed by a meeting with the Council of State on March 14. By March 15, a decision on the election date will be made. The elections are tentatively set for May 11 or 18, depending on the outcome of the motion of confidence, marking the possible culmination of this ongoing political crisis.

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4. Portugal Among EU Countries with the Greatest Employment Growth in the Fourth Quarter of 2024

Portugal recorded the third highest employment growth in the EU in the last quarter of 2024, with a 0.5% increase, matching Greece. This was well above the Eurozone’s growth of 0.1% and the EU’s 0.2%. Employment in Portugal outperformed most countries, with only Romania (+2.0%) and Spain (+0.9%) doing better. In comparison, countries like Croatia and Finland experienced the largest declines, both at -0.4%. In year-on-year terms, Portugal’s employment grew by 1.7%, with the Eurozone seeing a 0.7% increase and the EU a 0.5% rise in the fourth quarter. The growth rate in Portugal was higher than many EU countries, including Latvia (-1.0%) and Sweden (-0.6%).

The overall increase in hours worked was 0.6% in the Eurozone and 0.5% in the EU. Eurostat estimates that, in the last quarter of 2024, 219.7 million people were employed across the EU, with 171.2 million in the Eurozone. The productivity of the workforce increased by 0.4% in the Eurozone and 0.8% in the EU compared to the same period the previous year, further highlighting the positive economic trends in many parts of Europe.

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5. Russian Investment in Portugal Soared After Ukraine Invasion and Golden Visas Started Again

Following the invasion of Ukraine in February 2022, Russian investment in Portugal surged by 49%, reaching 450.6 million euros in 2024, and one of the main targets of this influx was the Golden Visa program. Note that the Bank of Portugal reported this significant rise in foreign direct investment but did not provide specifics on where the capital was directed. However, the newspaper ‘Público’ revealed that golden visas were a primary focus.

Suspended in 2022 after the invasion and European Union sanctions, the golden visas were reintroduced in August 2024 by the Agency for Integration, Migration, and Asylum (AIMA). The suspension ended after Portugal lost legal cases regarding the freezing of Russian citizens’ visa applications, which had been based on the European Commission’s recommendation, a non-binding measure that could not override the law.

Note that, between 2023 and 2024, there were cases where golden visas were granted through judicial means, with those individuals not being subject to sanctions; and that, in 2021, a year before the war, Russia had been the country with the most golden visas granted, with 65 visas issued.

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6. Portuguese Prime Minister Denies Illegal Activity Through His Real Estate Fund

Luís Montenegro, leader of the PSD and Prime Minister of Portugal, stated that he “did no more nor less than any Portuguese person” and rejected accusations of any illegalities or wrongdoings. He emphasized that he feels “exactly like any other Portuguese person” while also taking responsibility for his actions, and jokingly commented that his “responsibility was working” and reiterated his position that he did not violate any exclusivity duties with the company Spinumviva.

Note that these statements came in the context of the allegations surrounding his real estate company, which has been under scrutiny. Spinumviva caught the public’s attention mainly  because of the new land law and because its clients included notable companies that may have benefited from the Prime Minister’s position. However, Montenegro expressed frustration over being accused of political wrongdoing, questioning how it is possible to accuse him “categorically and politically” without consequence, asserting that he was “accountable for everything.”

Following the announcement of a motion of confidence to be discussed in parliament, the Prime Minister stated firmly that he was “ready to go door to door, Portuguese to Portuguese” to explain his position. He also questioned the absurdity of the argument suggesting he could have been in the government while doing something else.

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7. At doBeco, in Santos, You Can See Pastries Being Made on the Spot

After its success in Arroios, the Mello brothers, Lourenço and António, have expanded by opening a second location of doBeco in Santos, Lisbon, with a larger and brighter space. The menu remains the same, focused on classic dishes, but with new options arriving in the spring. The bakery has grown in popularity, with people coming for the pastries, coffee, brunch, and atmosphere. In fact, the Santos location was initially planned to be the first bakery, but delays in construction and licensing led to the opening in Arroios first in 2023.

The new bakery occupies the space of a former water bottle factory, and it stands out for its larger and more luminous space, with large windows along the façade. A major highlight of the new space is its open kitchen, visible to the customers, where they can watch the pastries being made from scratch. According to Lourenço, this creates a connection and proximity with customers, who are not used to seeing the production process firsthand. The bakery’s clientele is largely international, but there has been an increase in Portuguese customers. The owners want their Portuguese identity to be acknowledged. Lourenço emphasizes that the brand is Portuguese, and customers should think of it as such.

The menu is seasonally updated, with special coffees and new pastry items every month. Antonio, the creative mind behind the menu, is already planning dishes for spring. Some classics remain unchanged, such as the croque monsieur and classic eggs in various preparations. The brunch menu includes standout items like the doBeco plate, featuring eggs, bacon or salmon, gouda, artisanal ham, hash browns, roasted broccoli, and more. They also offer breakfast and brunch menus for one or two people, with beverages ranging from specialty coffee to matcha, fresh juices, and wine. In the future, Lourenço would like to open more bakeries, but only in strategic locations, ideally in Portuguese neighborhoods.

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8. Aerospace Is Now the Industry That Gives Wings to the Portuguese Economy

Portugal’s aerospace cluster has firmly placed the country on the global map, with over 150 companies and a turnover of €1.72 billion. The sector has attracted major global players such as Airbus and Lufthansa, positioning Portugal as a highly respected industry hub. The sector’s growth is reflected in major investments, like Lufthansa Technik’s new facility in Santa Maria da Feira, alongside Airbus Atlantic’s operations in Santo Tirso, showcasing Portugal’s dynamic role in the global aerospace supply chain. Over 90% of production is exported to countries like France, Brazil, and the US, contributing to Portugal’s international standing.

Over the past two decades, Portugal’s aerospace sector has developed expertise in manufacturing aero structures, components, and maintenance services, with key investments like the Pratt & Whitney maintenance center. Experts highlight the importance of expanding the supplier chain to ensure the industry’s future growth. Embraer’s recent subsidiary in Portugal, focused on defense and security solutions for NATO and the EU, marks a milestone in Portugal’s strategic position. The sector’s evolution from aero structures to more advanced technology is crucial for maintaining global competitiveness and innovation.

Note that Portugal is positioning itself at the forefront of aerospace and mobility innovation, with projects like the FLY-PT “flying car” prototype and the development of the LUS222 aircraft. Initiatives like AI Fights Space Debris and New Space Portugal highlight the country’s space exploration ambitions, ensuring continued growth in satellite technology and aerospace. Moreover, sustainability goals, such as the integration of green energy in the new Lisbon airport design, demonstrate Portugal’s commitment to eco-friendly innovations.

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9. Portuguese Prime Minister Urges Portugal to Use Low-Cost Loans to Invest in Defense

At the extraordinary European Council summit in Brussels, EU leaders agreed to fast-track the mobilization of necessary funding for strengthening the EU’s defense and security infrastructure. The “Rearm Europe” initiative, proposed by European Commission President Ursula von der Leyen, is supposed to tap into resources from the Cohesion Funds, the European Investment Bank, and private capital to improve defense capabilities. Additionally, the leaders reaffirmed their unwavering support for Ukraine’s independence, territorial integrity, and sovereignty. In this regard, the EU agreed to provide €30.6 billion in financial assistance to Ukraine in 2025 to aid in its recovery and ongoing efforts to counter aggression.

Prime Minister Luís Montenegro highlighted that Portugal should seize the opportunity to use low-cost loans from the European Commission for defense investment, commending the flexibility provided to maintain the trajectory of public finances. He emphasized that Portugal, with positive budget surpluses in both 2023 and potentially 2024, has room to increase public spending without violating the EU’s stability pact. He also signaled the activation of the national safeguard clause, which would allow a maximum increase of 1.5% per year in defense spending while avoiding excessive deficit procedures.

The Prime Minister also expressed that Portugal is prepared to deploy troops to Ukraine if needed, further solidifying its commitment to European security. He emphasized that Portugal stands ready to assist its European partners, should the situation require a greater military presence. Note that, at the summit, Hungary was the sole EU member not to sign the conclusions regarding the support for Ukraine.

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10. Portuguese Government Moves Forward with Public-Private Partnerships in Five Hospitals

The Portuguese government has decided to move forward with public-private partnerships (PPPs) in five hospitals of the National Health Service (SNS): Loures, Amadora-Sintra, Vila Franca de Xira, Garcia de Orta, and Braga. The Minister of the Presidency, António Leitão Amaro, emphasized that this is a “very important historic decision,” recalling that three hospitals had a recent experience with PPPs and another had a past experience. These evaluations concluded that PPPs, when managed well, delivered better healthcare at a lower cost to patients.

The government is launching two key processes for these hospitals: first, creating a price comparator with the public sector to ensure savings for taxpayers, and second, preparing an open, transparent, and competitive process for awarding the PPPs. The Minister of the Presidency supported the decision by referencing guarantees from the Health Regulatory Authority, the Court of Auditors, and studies that all agree PPPs in healthcare have proven to be successful and will continue to be.

In addition to these partnerships, the government approved investments of €30 million in Viseu Hospital for a technical center and radiotherapy center, as well as €7 million for equipment. A €32 million reinforcement for Évora Hospital was also confirmed to ensure the completion of its project. Furthermore, the government announced the elimination of 120 fiscal council positions in health units, leading to savings of €1.3 million.

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On September 27, 2024, Portugal formalized an innovative housing support initiative with Order No. 236-A/2024/1. This program makes homeownership significantly more accessible for young people looking to purchase their first home in the country. If you’re between 18 and 35 years old and considering putting down roots in Portugal, this government initiative could be your path to property ownership without the need to pay any money upfront.

The program has generated significant interest, with the four largest banks in Portugal already receiving more than 11,500 requests for these public guarantees.

Understanding the Public Guarantee System

The Portuguese government, working together with the Bank of Portugal and the Portuguese Banking Association, has established a public guarantee system that effectively enables 100% mortgage financing for qualifying young buyers.

This state support mechanism covers 15% of the property’s value—essentially replacing the down payment that banks typically require. By eliminating the need for a substantial upfront deposit, the program removes one of the most significant obstacles to homeownership for young people between 18 and 35 years old.

In the unlikely event of default, the state would assume responsibility for the 15% portion, while the lending bank would handle recovering the remaining balance.

This program is particularly noteworthy because it’s available to foreign residents who are registered for tax purposes in Portugal—not just Portuguese citizens.

Key Details About the Guarantee

To qualify for this program, you must meet these specific criteria:

• Be between 18 and 35 years old
• Be registered as a tax resident in Portugal (regardless of nationality)
• Have an annual income that doesn’t exceed the 8th tier of IRS (€81,000)
• Not own any other property
• Be purchasing a home valued at no more than €450,000
• Intend to use the property as your primary and permanent residence

Loan terms vary slightly by age. Applicants up to 30 years old can access mortgage terms up to 40 years, while those between 31-35 years old have a maximum term of 37 years

Banks will still enforce debt service ratio requirements, which ensures that your total monthly loan payments will not exceed 50% of your net income (with some exceptions possible).

The public guarantee also comes with several important conditions:

• It remains valid for 10 years from the start of your mortgage
• You can cancel it early if you fulfill all obligations before the end of this period
• If you make partial early repayments, the guarantee will be proportionally reduced
• The guarantee specifically covers the 15% that would typically be required as a down payment

Foreign Residents Already Benefiting

According to recent reports, young foreign residents are already taking advantage of this opportunity. Major Portuguese banks like Novo Banco, BPI, and Bankinter confirm they’ve received applications from international residents, with Brazilians representing the largest group of foreign applicants, followed by citizens from Portuguese-speaking African countries. At Novo Banco, approximately 10% of approved applications under this measure are from foreign citizens, with 90% of those being young Brazilians.

Since the beginning of the year, ERA, Portugal’s first real estate network, has had 10 requests per month, while others have registering more than 50 requests per month for information or feasibility. The ERA Portugal president noted the majority of inquiries come from Brazilians (62.5%) and citizens from Portuguese-speaking African countries (19.2%), with additional interest from Italian, French, Ukrainian, and Venezuelan residents.

The Importance of Portuguese Tax Residency

For those 18-35 year-olds considering this opportunity, establishing Portuguese tax residency is a crucial first step. There are multiple ways to get a Portuguese visa that we recommend for young people including the D2, D7, D8 programs. You may also even consider applying for this program after graduating from a Portuguese university if you are in the applicable age and tax brackets.

This not only qualifies you for the mortgage guarantee but potentially also for property tax (IMT) exemptions and stamp duty exemptions. Portuguese residency status allows you to build a local financial profile that banks recognize when evaluating mortgage applications.

After establishing Portuguese residency, research participating banks (including Novo Banco, BPI, and Bankinter). Then, verify eligibility with potential lenders, ensure your chosen property is within the €450,000 price cap, confirm your debt-to-income ratio meets the 50% requirement, and begin your property search with the knowledge that the traditional deposit barrier has been removed.

Final Thoughts

This initiative represents a significant opportunity for young internationals looking to make Portugal their home while building equity through property ownership. By eliminating the need for a substantial down payment, the Portuguese government has made the dream of homeownership more accessible to a new generation of residents. This initiative will certainly not alleviate the current housing crisis, but it will allow young residents get into a market that may have only seemed like a dream before the public guarantee system.