Set along the scenic coastline of Portugal, Lisbon has rapidly emerged as a thriving hub for entrepreneurs from around the globe. With its blend of old-world charm and forward-thinking innovation, the city offers an ideal ecosystem for startups and business ventures to flourish. From its strategic location bridging Europe, Africa, and the Americas, to its growing tech scene and vibrant community of creators, Lisbon is much more than a beautiful city—it is a launchpad for ambitious ideas.
Why is Lisbon the Perfect City for Entrepreneurs?
In the past few years, Lisbon has become a magnet for entrepreneurs and not without good reason. Portugal’s capital has developed a good supportive infrastructure for startups, while still keeping its cost-effectiveness, and unique lifestyle advantages that make it a perfect destination for those looking to combine business success with quality living. Whether you are an experienced founder or just starting your entrepreneurial journey, Lisbon might just be the city to turn your vision into reality. In this article we will dive into all the reasons why opening a business in the city can be a great and strategic move, both from a business and from a personal standpoint.
Business-Driven Reasons to Choose Lisbon as Your Company Headquarters
Lisbon is One the Most Important Startup Hubs in Europe
Lisbon has firmly established itself as one of Europe’s leading startup hubs, underpinned by a dynamic ecosystem of incubation and acceleration programmes. At the forefront of this growth is Startup Lisboa, a pivotal initiative supporting early-stage ventures with access to resources, mentorship, and networking opportunities. Likewise, LASCS (Lisbon Academic Science and Startup Centre) plays a critical role in bridging academic research with entrepreneurial initiatives, promoting a culture of innovation and practical application.
Adding to Lisbon’s appeal is the Unicorn Factory Lisbon, a dedicated space designed to support high-potential startups in scaling their operations and aspiring to join Europe’s elite tech companies. These hubs, complemented by an array of co-working spaces and regular networking events, have made Lisbon a magnet for global talent in a country that for quite some years now have been transformed in a hotspot for Digital Nomads. Whether seeking mentorship, investment, or collaboration, entrepreneurs will find in Lisbon a supportive and vibrant ecosystem that serves as the ideal launchpad for their ventures. Unsurprisingly, both Startup Lisboa and the Unicorn Factory made the top ten of the 2024 Europe's Leading Start-Up Ranking, a collaboration between the Financial Times, Statista, and Sifted.
English is Widely Spoken in the City
One of Lisbon’s most attractive qualities for international entrepreneurs is the prevalence of English as a widely spoken language. Portugal ranks as the 6th most English-proficient country globally according to the 2024 EF English Proficiency Index, reflecting the country’s linguistic accessibility, especially in the country’s capital. This high level of English proficiency ensures that entrepreneurs, investors, and professionals from around the world can easily navigate business dealings, network effectively, and integrate into the local culture.
In Lisbon, English is particularly common among young professionals, business owners, and those in the tech and startup sectors. Whether you are negotiating a partnership, attending a networking event, or simply ordering coffee at a local café, the ability to communicate in English adds a layer of ease and convenience for expatriates and international collaborators. This linguistic advantage, combined with Lisbon’s inclusive and cosmopolitan atmosphere, makes the city exceptionally accommodating for entrepreneurs seeking a global perspective.
The Home of the Web Summit
Lisbon’s status as the host city of the Web Summit, the world’s largest and most influential tech conference, cements its position as a premier destination for entrepreneurs. Held annually since 2016, the event attracts over 70,000 attendees from across the globe, including founders, investors, CEOs, and other professionals. This influx of international talent and expertise transforms Lisbon into a buzzing hub of innovation and opportunity, offering unparalleled networking prospects for entrepreneurs looking to forge partnerships, secure investment, or exchange ideas with some of the brightest minds in the industry.
Moreover, Lisbon is home to the headquarters of the company behind the Web Summit, further reinforcing its integral role in the global tech ecosystem. The event and its associated activities shine a spotlight on Lisbon’s thriving business scene, bringing global attention to local startups, accelerators, and investors. For entrepreneurs, this visibility provides not only access to key players in the tech world but also a platform to showcase their ventures on an international stage. Hosting such a high-profile event each year underscores Lisbon’s reputation as a city where innovation thrives and where entrepreneurs can confidently launch, grow, and scale their ideas.
Lisbon is a Highly Connected World City
Created in the Department of Geography and Environment at Loughborough University, the Globalization and World Cities – or simply GaWC – is a research network focused on analysing inter-city relationships within global urban networks. Each year, it measures the connectivity of cities, and in 2024, Lisbon stands as an Alpha- city, meaning it is a very important place, that links major economic regions into the world economy.
Also, as a crossroads between America, Europe, Africa and the Middle East, Portugal has a key location with its capital: Lisbon is home to the largest airport in the nation, which connects the city to 140 destinations, in over 50 countries.
The City is a Welcoming Hub for Expats
Lisbon has earned a reputation as one of Europe’s most expat-friendly cities, offering a warm and inclusive environment that makes newcomers feel at home. The locals are renowned for their hospitality, extending a friendly and open attitude towards expatriates from all corners of the globe. Lisbon also provides an excellent work infrastructure that supports both traditional and remote working lifestyles. The city boasts an abundance of cafés, many equipped with reliable Wi-Fi, where professionals can enjoy a productive day in a relaxed setting. Additionally, Lisbon is home to a growing number of co-working spaces. These venues often serve as networking hotspots, bringing together a diverse community of like-minded professionals, many of which are expats, in inspiring and collaborative environments.
Strategic Time Zone for Global Success
Lisbon's time zone, Western European Time (WET, UTC+0), offers a strategic advantage for companies operating across multiple countries. This positioning facilitates seamless communication and coordination with key global markets.
London: Lisbon shares the same time zone as London during standard time, enabling real-time collaboration during business hours.
Berlin: Lisbon is one hour behind Berlin, allowing for overlapping work schedules that support efficient communication.
New York: Lisbon is five hours ahead of New York, providing a convenient overlap in the afternoon for meetings and correspondence.
United Arab Emirates (UAE): Lisbon is four hours behind the UAE, allowing for morning collaborations in Lisbon that align with afternoon hours in the UAE.
Growing and Affordable Skilled Workforce
According to the Organisation for Economic Co-operation and Development (OECD), out of 36 studied countries around the world, Portugal was the 4th one in the percentage of students graduating in engineering. That, along with the great number of expats that work in the tech industry, paint a very promising picture for entrepreneurs that will have no trouble finding skilled people to fill out some of the most important positions at any startup, especially when located in the country’s Capital. Lisbon is also home to 3 out of the 4 best business schools and universities in Portugal.
Another plus is that the city’s cost-effectiveness allows for those valuable workers to also become more affordable to companies. When compared with other major hubs such as New York, London, or Berlin, Lisbon is an easier city to scout talent in without breaking the bank.
Portugal has a Business-Driven Visa
Another reason why Lisbon is a great city for entrepreneurs, is based on the fact that it is the capital of a country that offers a few straightforward relocation programmes, including a business focused one. The D2 Visa is a Residency by Investment programme, an alternative to the Golden Visa, in which you can obtain a permit visa to live in Portugal through the opening of a new company in the country, or by branching out an existing one.
If you prefer to experience the city before deciding to move your company and home address, the D2 Visa can also be a very interesting choice. By investing in a business such as the Mátria Co-working Space, an exclusive opportunity designed by Portugal Homes, you can start your D2 application process. That way, you can first relocate to Portugal, and then follow your business journey after you are all settled in. This is also a great way to see another set of reasons why so many entrepreneurs have chosen Lisbon, as the city offers not only great work opportunities but also a great lifestyle to go with it.
Quality of Life Related Reasons to Endeavour in Lisbon
Lisbon Has a Mild Climate and Great Air Quality
Lisbon’s exceptional weather and air quality are often overlooked as critical factors in its appeal as a business destination. However, the mild winters and warm, sunny summers make Lisbon, as well as the rest of the country, a year-round haven, especially for outdoor enthusiasts and those seeking an uplifting, energising environment. This is a great way of not only enhancing your quality of life but also to boost your productivity, as well as your team’s.
Air quality is another significant advantage, as Lisbon consistently ranks as one of the European capitals with cleaner air, thanks to its coastal location and sustainable urban policies. This creates a healthier environment, reducing stress and enhancing overall workplace morale. Quality of life is increasingly recognised as a key factor in attracting and retaining top talent, and Lisbon’s combination of stunning weather and clean air makes it an ideal setting for businesses that prioritise the happiness and well-being of their workforce.
Lisbon’s Active and Vibrant Lifestyle Fuels Creativity and Innovation
The active and vibrant lifestyle found in Lisbon is another compelling reason why entrepreneurs are drawn to the city. From its bustling cultural scene to a plethora of recreational activities, Lisbon offers a dynamic environment that fosters creativity, collaboration, and innovation. The city’s vibrant neighbourhoods are filled with lively cafés, restaurants, and bars where professionals can unwind, network, or draw inspiration. The rich cultural tapestry—featuring art galleries, live music, festivals, and theatre—creates a stimulating backdrop for entrepreneurs looking to balance work with enriching leisure activities.
For those who value an active lifestyle, Lisbon is also a paradise. Its location on the Atlantic coast provides easy access to surfing, sailing, and other water sports, while the city’s many parks, offer ample opportunities for running, cycling, and hiking. By offering a balanced lifestyle that combines work, culture, and recreation, Lisbon enables entrepreneurs and their teams to recharge, stay inspired, and bring fresh energy to their ventures, making it an ideal base for both professional and personal growth.
A Big Tech Hub on a Smaller Budget
Lisbon’s cost of living is another significant factor that makes it an ideal destination for entrepreneurs. Compared to other major European cities like London, Paris, or Berlin, Lisbon offers a much more affordable lifestyle without compromising on quality. From housing and transportation to dining and entertainment, the city provides excellent value, allowing entrepreneurs to stretch their budgets further while enjoying a high standard of living.
For startups, lower living costs translate into reduced overheads, making it easier to allocate resources to grow the business. Affordable office spaces, co-working hubs, and utilities allow entrepreneurs to maintain a professional presence without the hefty price tag found in other leading startup ecosystems. Even companies also operating in other countries find it worth to have part of their teams working remotely from Portugal’s main cities. Additionally, as we have commented on before, Lisbon’s cost-effectiveness extends to hiring, as the city offers access to a highly skilled and multilingual workforce at competitive salaries compared to other tech hubs.
Safety: A Solid Foundation for Ventures
Lisbon, as the capital of Portugal, offers entrepreneurs a secure and stable environment to establish and grow their businesses. Portugal consistently ranks among the world's safest countries, holding the 7th position in the 2024 Global Peace Index.
The low crime rates and political stability contribute to a predictable and reliable environment, essential for long-term business planning. Moreover, a safe city enhances the quality of life for both business owners and their employees, making it easier to attract and retain top talent from around the world. The assurance of safety fosters a sense of well-being and community, encouraging collaboration and creativity within the entrepreneurial ecosystem.
Affordable Healthcare: A Strategic Advantage for Entrepreneurs in Lisbon
Establishing a business in Lisbon offers entrepreneurs the benefit of Portugal's high-quality yet affordable healthcare system. The Serviço Nacional de Saúde (SNS), Portugal's public healthcare service, provides comprehensive medical care to all legal residents, ensuring that entrepreneurs and their employees have access to essential health services at minimal cost.
In addition to the public system, Portugal boasts a robust private healthcare sector known for its high standards and relatively low costs compared to other Western European countries.
Lisbon: An Ideal Destination for Entrepreneurs
Lisbon combines a vibrant business ecosystem, affordable living, and exceptional quality of life, making it an attractive destination for entrepreneurs. The city's strategic location and modern infrastructure provide fertile ground for companies to grow and for ventures to succeed.
Plus, relocating to Lisbon can be a straightforward process, especially through programmes such as the D2 Visa, designed for non-EU entrepreneurs aiming to establish or expand their businesses in Portugal. It is important to keep in mind that partnering with experts is key to navigating the relocation process with ease. Here at Portugal Homes, we offer comprehensive assistance to entrepreneurs who wish to turn Portugal into their work and home address and to thrive in a great city such as Lisbon, both professionally and personally.
Reach out to us so, together, we can put together the best plan for your future and start putting it into effective right away.
