Build your tech hub in Lisbon

Portugal offers a strong combination of factors: competitive costs compared to Western Europe, a growing pool of qualified tech talent, EU regulatory alignment (including GDPR), political stability, and attractive quality of life that helps attract and retain international professionals. Cities like Lisbon and Porto have vibrant tech ecosystems, with startups, scale-ups and large enterprises co‑existing.

Lisbon is the most mature tech hub, with the largest talent pool and ecosystem. However, Porto, Braga, Coimbra and Aveiro also have strong universities and growing tech communities. Many companies choose Lisbon as their primary hub and then expand or complement with teams in other cities depending on talent availability and cost.

Portugal has solid availability of software engineers (Java, .NET, JavaScript/TypeScript, Python), QA engineers, DevOps, cloud engineers, data engineers and analysts. There is also a growing pool of professionals in cybersecurity, AI/ML and product roles. Very niche or highly specialized profiles may still require more time or international recruitment.

Total cost of ownership (salaries, office, benefits, support functions) is generally lower than in Germany, Switzerland, Austria or the Netherlands. Exact savings depend on seniority and role, but many companies see double‑digit (around 30%) percentage reductions in tech team costs, while maintaining or improving quality.

Not necessarily. Some companies choose to open a local entity to hire directly and build their own structure. Others work with local partners (nearshore providers, consulting firms, EORs) to access talent and infrastructure without immediately creating a legal entity. The right model depends on your long‑term strategy, risk appetite and desired level of control.

Key aspects include Portuguese labor law, tax implications, data protection (GDPR), and any sector‑specific regulations (especially for banking, financial services and insurance). Many companies work with local legal and tax advisors or experienced partners to ensure compliance when setting up operations and handling customer data.

Timelines vary, but a common pattern is: a few weeks for planning and partner selection, a few months for initial hiring and setup, and 6–12 months to reach a stabilty. If you work with an established local partner that already has teams in place, you can often start with a smaller squad in a matter of weeks (4) and scale from there.

Yes. English is widely used in the tech community, especially among mid‑senior professionals and in international companies. Many organizations operate fully in English, and documentation, code and communication are commonly handled in English without major issues.

No. Even with the growth of German (or german-speaking) companies in Portugal, it is hard to find talent with this skill (not impossible). However, companies like Aubay Portugal offer language courses, a structured Academy and a career plan to compensate for this shortage in the market.

The market is competitive, especially for senior profiles, but retention is generally better than in some larger hubs. Companies that invest in career development, training, clear progression and good working conditions tend to achieve solid retention rates. Employer branding and a clear value proposition are important to stand out.

Common risks include underestimating the time needed to build a local brand, relying on a single city or small talent pool for very specific skills, and not adapting to local labor and cultural expectations. Another risk is trying to “copy‑paste” your home‑country model without adjusting processes and communication to a distributed, nearshore setup.

Most companies adopt a hybrid approach: they keep strategic roles and product ownership in their home country, while building delivery, engineering or specialized teams in Portugal. This allows them to balance control, proximity to business stakeholders and cost efficiency, while leveraging Portugal as a scalable tech hub.

Successful setups usually include: clear governance and ownership, overlapping working hours, defined communication rituals (stand‑ups, reviews, retros), shared tools, and occasional in‑person visits in both directions. Investing early in integration, culture and ways of working is key to avoiding “us vs. them” dynamics.