Starting a Business in Portugal



Posted: Wednesday, February 01, 2006

by
Publicity Direct Ltd




by Pedro Rodriguez
www.sellandbuydirect.com


Much has been written about this subject already. So why do I spend my time and write another one? Well, one of the reasons I have in doing so, is that I do know Portugal well and feel that I can write with some authority on this very subject.

One other reason I have, is that by reading what has been said and written about moving to Portugal does not reflect the whole spectrum.

There are two different and principle issues concerning this topic. A. moving to Portugal for retirement, and B. moving to Portugal whilst still in need of employment and the need to make a living.

Too much emphasis in the articles I have read is put on the sun, the beaches and the wonderful life in a country where the pace of life is slower, the environment healthier and life in general is wonderful and easy. Well you may not like what I have to say, but I believe that such views are slightly removed from reality.

Let me tell you, that I am an extremely optimistic person and to look at life in a pessimistic way is not part of my make up but I very much dislike that people who are seriously thinking about moving to Portugal are getting sold only half the story.

I have a sneaky suspicion, that some of the authors have had a very personal and vested interest in painting a very colourful and glowing picture.

Let my get more specific about it all and cover the retirement angle first.

To retire in a country with better climate and hopefully with a lower cost of living is a positive step which more and more people take. After a lifetime of work and with a pension to secure this new chapter in their life’s there are very little risks in moving away from your home country. After all Portugal is less than 3 hours away. Faro International airport has excellent connections to the UK in particular, with many operators offering low cost fairs.

The vast majority of retired couples will keep their home in their respective country and spend a few months at a time in the sun, returning to their home country whenever they feel like. Others do live abroad all year round. Both these groups have one thing in common. A regular income.

With a secure and steady form of income from whatever source, you truly can enjoy the country, its people, the sun, and the beaches, the food, in short a great way of life. That’s wonderful. You deserve it.

Now let me turn to the second group of people who are looking to move to Portugal but are in need of a job and income.

I have met and spoken over the past 20 years with many clients and given my views and advice on moving to a different country. I have also met and spoken to many people after they have moved and heard their stories and learned of their problems.

In almost every case where problems developed, it was due to the fact that they relied on information they were given and not taken the precaution to double check, if what they have been told was indeed correct.

Coming to Portugal today, believing that it will not be a problem finding well paid employment can not be further from the truth. It will be tough and that is the reality. I have seen many foreigners come and go, not being able to make ends meet. Not speaking the language does not help and will always be a major obstacle which is not easy to overcome.

If one would like to have a serious desire to succeed in working in Portugal, or even starting a business here the language is priority.

Not speaking the language will narrow your opportunities, and you will be restricted to working within your own ex pat community. Another reason I have identified over the years being responsible for failure and early return to the country they left with so much hope and expectations was the inability to adapt to a very different way of life. If children are involved in a move abroad, and depending on their ages, the education issues can add additional pressure. Not everyone has the money to pay for the education in private schools of their own nationality. Many parents have to send their kids to Portuguese schools which can prove difficult for the children. But that really depends on their ages. The younger they are the better it is, and the less problems parents will encounter.

So when we are talking about younger people coming to live in Portugal, the key issue is without any doubt whatsoever financial stability and the capacity to earn money in a new country. An amazing amount of people underestimating the differences in the way things work in Portugal. Even people with good skills in their respective professions need to learn how to apply their skills within a new, and at the beginning strange environment.

Starting a business in the sun is the dream of many, but unfortunately quite often not enough time is spend on research, evaluating potential markets and opportunities. I don’t like to say it, but the dream of buying a bar or restaurant is mostly short lived. Very few foreigners, having bought a bar or restaurant earn enough money to keep a family. I deliberately said foreigners. The Portuguese bars and restaurants are different and a foreigner will in most cases not be able to compete. When I decided to write this article, I promised myself to be honest and to portray things as they really are.

Please don’t misunderstand I am not saying that you can’t earn money in Portugal. What I say is this: Don’t repeat the mistakes countless others have made before you. Take advice from qualified sources and act upon that advice. Portugal in my belief has a lot of opportunities to offer if you can see them and know how to exploit them and make them work for you.

If you come with the attitude to do your “thing" in the same way you have always done it you have a great chance of “not making it". Don’t let that happen.



About the Author: Pedro Rodriguez was born in Valencia and spent his early career with Woodstock Homes PLC. After almost 20 years involvement with residential and commercial property sales he is now engaged in a new venture and works as a consultant for an American advertising company. promoting the sale of properties direct from the owners. http://www.sellandbuydirect.com

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Top-level comments on this article: (1 total)
» left by Stephen
from Albufeira 4 years 312 days ago.
Having now spent seven years in the Algarve. The first five as a very poorly paid employee within the ex pat bar scene and the last two as a bar owner I whole heartedly agree with all of the observations made by Pedro Rodriguez.
» left by 4 years 251 days ago.
Thank you for your comments, it is always nice to see that someone living in the country does come to the same conclusions.
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