US Investment in Portugal Surges 149 Percent Since 2019, Reshaping the Foreign Capital Landscape

The United States has quietly become the third largest source of foreign direct investment in Portugal, surpassing both China and the United Kingdom in a shift that became clear only after a statistical revision by the Bank of Portugal this week.

The revised figures show US investment stock in Portugal grew 149.3 percent between the first quarter of 2019 and the end of 2025, reaching 16.8 billion euros. The starting point at the beginning of 2019 was just 6.7 billion euros.

Why the Numbers Changed

The dramatic revision stems from the Bank of Portugal incorporating new data from the Simplified Business Information (IES) declarations that companies submit to tax authorities. According to the central bank, the changes were "primarily due to acquisitions that took place between non-resident entities, impacting the country of the final investor" and changes in the country of residence of controlling entities.

In practical terms, this means investment that was previously attributed to other countries was reclassified as American once the true ownership chain was traced. The US showed the largest increase compared to previous estimates, adding 5.2 billion euros in absolute terms in the third quarter of 2025 alone, a relative jump of 46.8 percent.

Before the revision, growth was estimated at a more modest 65.6 percent. The corrected figure of 149.3 percent tells a very different story about American capital's role in Portugal.

Where the Money Goes

The manufacturing sector saw the most dramatic revision, jumping more than 3 billion euros from the end of 2023 to early 2024. By the end of 2025, US manufacturing investment in Portugal stood at 4.5 billion euros, closing in on the banking and insurance sectors, which hold the largest share at 5.1 billion euros.

Among the most prominent American investors in Portugal are Lone Star, which is set to complete the sale of Novo Banco by the end of April, and KKR, which has made significant plays in Portuguese assets. The tech sector has also seen growing American interest, particularly in Lisbon's startup ecosystem and Porto's expanding technology hub.

The Bigger Picture

The surge in US investment aligns with broader trends. Portugal's combination of competitive labor costs, a skilled English-speaking workforce, favorable time zone for transatlantic business, and EU membership has made it increasingly attractive to American companies looking for a European base of operations.

The Golden Visa program, even after the 2023 reforms that eliminated the real estate pathway, continues to channel American capital into Portuguese investment funds. Tech companies, in particular, have been drawn to the Web Summit effect in Lisbon and the growing reputation of Portuguese engineering talent.

What It Means for Expats and Residents

For Americans living in or considering a move to Portugal, the investment surge is broadly positive. Greater US corporate presence means more English-language professional opportunities, stronger business networks, and deeper economic ties between the two countries.

The concentration of investment in manufacturing and financial services also suggests diversification beyond the tourism and real estate sectors that have dominated foreign interest in Portugal. That diversification is healthy for the economy and could help create higher-value jobs in sectors that have traditionally been underdeveloped.

However, the impending Novo Banco sale and potential shifts in US trade policy under the current administration add uncertainty to the outlook. Whether the investment trajectory continues its steep climb or plateaus will depend partly on factors outside Portugal's control, including transatlantic trade relations and the global economic environment.

For now, the revised numbers confirm what many in Portugal's business community had suspected: American money is playing a much larger role in the economy than anyone previously realized.

Background: See BA Glass's 41% acquisition of Tunisia's Sotuver.