Why set up a BPO in Portugal

Considered one of the oldest nation-states in Europe, Portugal has drawn tourists for its great beaches, wineries, and all-year-round surfing. But more than being a tourist draw, this country of 10 million has also evolved into becoming the top choice for tech companies that are looking to open offices or set up BPOs in Europe. Here are five reasons why Portugal is the top choice for your next European back office:

• Business-friendly policies. Portugal has numerous tax incentives for companies, depending on industry and amount of investment. Companies into renewable energy or whose work promotes globalization get tax credits of 10 to 20 percent. Individuals can avoid double taxation on their income based on a tax treaty that Portugal signed with the US in 1994. Further, businesses that invest up to five million euros can get a 20 percent tax deduction, which translates to a corporate tax of as low as 5.5 percent.

• Young, skilled workforce. Portugal’s top universities are known for their high-quality graduates, producing 90,000 graduates every year. In fact, the country’s higher education was ranked no. 35 in the world by the QS Higher Education System Strength Rankings, and five of its universities are featured in the QS World University Rankings. Portugal’s engineering talent are also considered top quality and come at a competitive cost compared with other talent hubs in Paris, Dublin, Berlin and London. The Portuguese also have a higher level of English proficiency than those in Spain, France or Italy.

• Ease in doing business. Unlike other countries with complicated policies for setting up businesses, Portugal was ranked no. 39 in the World Bank’s Ease of Doing Business Index in 2020. The country is peaceful and stable, ranking third in the Global Peace Index 2020. It also ranks highly on the Human Development Index, which measures the standing of countries according to human development and education, a signifier of a healthy environment for business success and profitability.

• Competitive real estate, lower cost of living. Another reason for setting up a BPO in Portugal versus other European countries is that property prices in this country are much lower per square meter than those in Berlin, London, Stockholm or Zurich. Inflation is also at one percent, so the cost of living in Portugal—particularly in Lisbon, the capital city—is much lower than in other European cities.

• Europe’s fastest-rising tech hub. As the new base of Silicon Valley companies like Google and Amazon, the headquarters of 29 VC funds, and the birthplace of three unicorns (Farfetch, Outsystems, and Talkdesk), Portugal is where the action is. Every year, investors and entrepreneurs flock to Lisbon for Web Summit, a major event in the European tech scene.

If you are looking to set up a BPO in Europe, look no further than Portugal. Wingspan can help you find and hire top-quality local talent to staff your team. And with our solid experience in BPO consulting, we can help you get your BPO operations up and running while ironing out the complexities of setting up a company in Portugal—so you can focus on what you do best. Email solution@wingspan-consulting.com to understand how we can help.