Portugal’s economy is fully integrated into the European Union (EU). Fellow EU member states remain Portugal’s biggest trading partners and its largest investors. In 2017, the economy continued the upward trajectory begun in 2014 with completion of a EUR 78 billon European Union-IMF bailout program. Unemployment dropped to 8 percent, and GDP growth was 2.7% of GDP, the highest this century.
Portugal hosts over 220 automotive supplier companies and 4 major car manufacturers—Toyota/Salvador Caetano, PSA Peugeot Citroen, Mitsubishi Trucks and Volkswagen AutoEuropa.
Summary
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The most effective way to enter the Portuguese market is to partner with a local company that can act as a local representative as well as provide insights about the local market environment and trends.
The mandatory European approval and certification process can be challenging for U.S. vehicles and parts when exporting to Portugal.
There are no customs duties on imports from European Union (EU) countries. The VAT in Portugal is 23 percent. The VAT is applied to all imports, including European and local suppliers.
Market Entry & Barriers
Portugal
Best Prospects for U.S. Exports
Aftermarket Accessories
The market for automotive accessories and specialty equipment in Portugal and distribution channels largely consist of small importers. Although it is a market fairly small compared to neighboring Spain, it is an ideal market for product acceptance studies, serving as a gateway to enter other European markets as well as other Portuguese-speaking markets.
Acceptance of U.S. products and new technology in Portugal is very high and well received by local companies. Portuguese over the past years have become fans of a wide range of products such as, passive and active security systems, automotive eco-friendly solutions, diagnostic and testing tools, as well as car entertainment systems.
In general, all products with cutting-edge technology can be placed into the Portuguese market. As a rule, Portuguese are ready to take into consideration new products and pay extra money for something that is, or seems to be, new and innovative.