Portugal's Minister of the Economy, Manuel Castro Almeida, announced on Monday that the government will overhaul the country's business licensing framework, aiming to eliminate unnecessary paperwork and cut red tape as early as this autumn.
The proposed changes are expected to be released for public consultation in the autumn. However, the minister said it remains unclear whether the legislative overhaul will require parliamentary approval.
Speaking at a luncheon organised by the CFO Club, an initiative of consultancy EY, Castro Almeida said that in several sectors businesses will no longer be required to submit prior notifications, while in others a technical expert's declaration will be sufficient to obtain a licence.
"If I want to open a laundrette, why should I have to apply for a licence? What public value does the State provide by issuing that licence? Or what does the State gain from requiring prior notification?" he asked.
"The State must not stand in the way of businesses," the minister said, adding that inspections should become exceptional rather than routine.
Highlighting Portugal's economic performance, Castro Almeida noted that the country secured a record €3.58 billion in contracted foreign investment in 2025, describing it as "the biggest and best year since Autoeuropa."
He also pointed to improvements in the processing of applications at IAPMEI, AICEP and Turismo de Portugal, stating that there are currently no overdue cases at IAPMEI or AICEP and that, from Tuesday onwards, Turismo de Portugal will also have cleared its backlog. The statutory 60-day deadline for assessing applications, he said, will now be fully respected.
The minister also announced that the next cycle of European Union funding will prioritise investment in the energy transition, with the objective of reducing Portugal's dependence on oil and natural gas.
"The green transition is not only a matter for the environment minister. It is also an economic priority," he said, encouraging companies to accelerate investment in renewable energy and battery storage technologies.
Addressing chief financial officers attending the event, Castro Almeida also highlighted the government's commitment to greater fiscal predictability, referring to the planned four-percentage-point reduction in the corporate income tax rate by 2028.
"The principle is simple: whenever taxes change, they should be reduced," he said. "Even excise duties on tobacco and alcoholic beverages have not increased, and I am confident that no tax rates will be raised during this parliamentary term."
