The figures indicate that the country remains competitive for international investors but is not immune to the pressures affecting investment across Europe.

The figures from the EY Attractiveness Survey Portugal Report 2026 show that Portugal is still competitive for international investors, while it is not immune to the pressures felt in the European market. Portugal had a smaller reduction when compared to the value registered across the European Union (7%).

The role of energy

The energy sector shows particular relevance in the results. The use of renewable energies in Portugal is seen as an advantage to foreign investors, who want to reduce their carbon footprint. However, at the same time, energy costs are also a reason that impacts the decision to invest in Portugal.

That conflict in access to renewable energy and the cost of energy creates a step back in making decisions. On one hand, access to eco-friendly energy helps attract manufacturing, technology and other energy-intensive operations; on the other hand, this advantage is weakened if companies believe that the operating cost may be higher than in other competing markets.

The 5% reduction in projects in Portugal does not reflect that the value of investment decreased by the same proportion. Individual projects, for example, vary in size and employment hirings.

The report is published at a time when European countries are competing for new industrial capacity, digital infrastructure and projects that are associated with the energy transition. The EY survey suggests that Portugal retained resilience when compared to the other European markets.

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