Foreign investment in Portugal rebounds to €6.7 billion – Portugal Resident

Foreign direct investment in Portugal rebounded to €6.7 billion during the first half of 2026, reversing a small net outflow recorded over the same period last year, according to Banco de Portugal figures released today.

Of the total, €6 billion was invested in the capital of Portuguese companies and other entities.

Property accounted for €1.7 billion, down from €1.9 billion during the first six months of 2025.

Investment from elsewhere in Europe drove the recovery. 

Looking at the country through which the investment entered Portugal — known as the immediate counterpart — France contributed €7 billion and Spain €1.9 billion.

Those figures exceed the overall €6.7 billion total because foreign direct investment is calculated as a net flow: positive investment from France, Spain and other countries was partly offset by a €4.6 billion reduction in investment attributed to Luxembourg and other movements during the period.

The use of the “immediate counterpart” also means the figures identify the country from which funds were transferred directly, which may not always be the home of the ultimate investor. Luxembourg is frequently used as an intermediary for international investments.

At the end of June, Portugal’s accumulated stock of foreign direct investment stood at €225.1 billion – equivalent to 71% of gross domestic product.

Income paid to foreign investors reached €5.4 billion during the six months, €400 million more than a year earlier.

Portuguese direct investment abroad moved in the opposite direction, falling sharply from €2.6 billion in the first half of 2025 to just €200 million this year.

Of that amount, approximately €300 million was invested in the capital of foreign entities, while other transactions reduced the overall net figure.

Europe remained the principal destination for Portuguese investment. Spain received €600 million, while Luxembourg and Poland each received €200 million.

Portugal’s accumulated stock of direct investment abroad stood at €82.2 billion at the end of June, equivalent to 26% of GDP. Income received from those overseas investments rose by €300 million to €2 billion.

Source: Banco de Portugal