Tariffs: Portugal uses the Harmonized Nomenclature and Classification System (HS) and applies import duties according to a maximum and minimum rate schedule. The minimum tariff schedule is applied to goods originating in countries entitled to the benefits of most-favored nation treatment (members of the GATT and countries with which the EU has signed trade agreements) including the United States and most other countries.
Taxes: Importers must pay the value-added tax (IVA) that ranges up to 17 percent in full at the time of importation from a non-EU country. Imports from EU countries only pay the IVA when a product is sold. This encourages many distributors to import indirectly from the U.S. via other EU countries. U.S. companies benefit from the U.S. – Portuguese tax treaty, which protects U.S. investors from double taxation and extends exceptional tax reductions on profits and capital gains to investors.
Foreign Investment: The Portuguese Government promotes foreign investment in Portugal through a government agency, ICEP (Investimentos, Comercio e Turismo). The country maintains a simple, post facto registration regime for foreign investment. On the Portuguese mainland, foreign investors need only register with ICEP within thirty days from the day they make their investment. For investments in Madeira or the Azores, investors need to register with the Regional Secretariat of Planning and Finance.
Foreigners are allowed to establish operations in almost all-economic sectors open to private enterprise.
Free Trade Zones: Portugal has two foreign trade zones/free ports in the autonomous regions of the islands of Madeira and the Azores, but none on the mainland.
Bonded warehouses: Foreign products may be brought into Portugal and stored in bonded warehouses duty-free for an unlimited period of time.
Trade Finance: With European monetary integration, Portugal is increasingly integrated into a European-wide financial market. As a member of the Euro-zone, Portugal now offers low exchange rate risk for foreign investors, interest rates comparable to other EU countries and a greater availability of credit.
Bankers acceptances and supplier credit are commonly used to finance international trade. Most international trade is handled by commercial banks.
Business Customs: Business takes longer compared to northern Europe, because personal contacts are important.
Portugal is a country in transition culturally as well as economically. Courtesy, in business and other spheres, is expected and easily extended.
In terms of everyday business the Portuguese are correct and civil. They are on time for appointments and expect the same from others.
Marketing and Selling Factors:
Agent/distributors usually operate a sales network that covers the entire country, and expect exclusive representation agreements. They tend to be quite specialized in their respective market segment.
Additional Services: No rules or current practices exist regarding sales service/customer support.
E-Commerce: Although relatively less developed than in many other EU countries, “E-commerce” has allowed the emergence of very successful shops for office supplies, computer hardware and software and groceries.
Labeling: All products must be marked according to EU directives. Imported goods need to be marked with an indication of origin.
Standards: Portugal uses NP EN ISO 9000 Standards, which are equivalent to ISO 9000 standards.
Patents/Trademarks/Copyrights:
Patents: The Munich Convention on European Patents is in effect.
Trademarks: Portugal is a member of the International Union for the Protection of Industrial Property (WIPO).
