Portugal is now a developed European Union market of around 10.6 million people.
Its language is the 6th most spoken in the world. English is widely spoken too, so foreign companies can conduct business in English, since nearly every Portuguese national speaks this language.
The Best Market Entry Strategies for the Portuguese Market
U.S. & Foreign Commercial Service recommends entering the market with the assistance of a local partner. Personal contacts are important for conducting successful business in the country. That's why fnding a group, or an individual, who can provide useful advice and contacts can be very beneficial.
In order to establish an office in Portugal, a Portuguese company should be established according to the country’s law.
Price is more important than quality for most tenders and goods. So, in order for a product to be competitive, the price must not be higher than that of the rivals.
Portuguese importers now prefer to receive C.I.F. or F.O.B. quotations that include a product description, shipping weight, volume and time of shipment and delivery. Though such invoices are not mandatory, they are very desirable.
Doing Business in Portugal
The largest proportion of the country's businesses are concentrated in Lisbon, the capital of Portugal. Modern techniques of conducting business are widely spread throughout the country.
Traditional values are still greatly respected: personal contact and a handshake are more valued by most Portuguese businesspeople than a signed contract. Though a request for a formal contract will not offend a Portuguese businessman, personal relations are valued and respected more than any legal documents. A handshake is always appropriate when greeting a businessperson.
Business Etiquette in Portugal
The Portuguese are civil in everyday business. They value the time of both their visitors and themselves, and expect the same treatment. This factor also relates to their attentiveness to details: they are very careful with all their papers, actions and decisions.
- Trade disputes are few since the business community of the country is very close, and most distributors are family-run.
- Dress in Portugal is more formal than in America. Long sleeved shirts or blouses are the most appropriate, with a tie for men.
- Personal and physical spaces are not emphasized: a person may stand less than a foot from another person, and it would be rude to step back.
- Titles like Doctor, Engineer, or Architect are widely used since the business community is very formal. Therefore, a businessperson should always make sure to ask for the person's title, and use it together with the last name.
- Speaking one at a time is not common for communication in Portugal. It is normal for the Portuguese to interrupt each other, or speak simultaneously.
- Writing in red ink is not appropriate for business communication.
General Information
- The cost of housing corresponds with those in the rest of Europe. The prices on food are very close to those in the US.
- Local time is GMT, and usual business hours are from 9 AM to 6 PM.
- Shopping can be done in stores from 9 AM to 7 PM, or in a shopping mall from 10 AM to 11 PM.
- The official currency is Euro.
- Banks are open from 8:30 AM to 3PM. Credit cards and travelers cheques are accepted everywhere.
- Visa is not needed for a traveler to stay in the country for 90 days.
Those who found this article useful may also be interested in reading about Business Etiquette of the Spanish Market, or the business culture of the Russian Market.
Alla Kondrat - Alla Kondrat+ is a Feng Shui topic editor at Suite101.com, as well as a full time freelance writer and translator (Russian and Ukrainian). ...
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