Portugal tightens foreign investment screening ahead of EU-wide rules

Portugal is preparing for new foreign investment controls that will directly affect those planning to invest in property and business in the country.

The European Union is tightening scrutiny of investments in strategic sectors: energy, transport, defence, artificial intelligence and digital infrastructure. Portugal already has a mechanism to block deals threatening national security, but the new system will be considerably stricter. The government is conducting an internal assessment of how to adapt current rules to European standards.

Key deadline: the new system comes into force on 17 January 2028. By then, Portugal must establish a more comprehensive screening process and coordinate with the European Commission. Enhanced controls will apply to investments in semiconductors, quantum technologies, critical raw materials and telecommunications.

For investors, this means: if your project involves sensitive sectors, the approval process could take longer. Standard property in tourist zones will not be affected, but large commercial projects should be planned with these new realities in mind.

Source: Portugal News