Drop in Foreign Direct Investment (FDI) in the first half smoothed by the strengthening of investors from Spain, Germany and France.
Luxembourg, the Netherlands, Brazil and Angola significantly reduced their foreign direct investment (FDI) positions in Portugal in the first half of this year compared to the end of 2019, according to calculations by Dinheiro Vivo (DV) based on statistics yesterday disclosed by Banco de Portugal.
The FDI drainage was not greater only because Spain and Germany strengthened their investment positions (stocks) in the Portuguese economy.
According to these data, investors based in Luxembourg withdrew 1,115 million euros from Portugal in the first half of the year, a period largely marked by the pandemic (declared in March).
According to the DV, much of this movement may be related to funds and companies present in Portugal (Portuguese brands) that declare income in Luxembourg as this is a much more liberal and attractive territory from a fiscal point of view. We may be talking about sales of shareholding positions, real estate assets, repatriation of profits. Banco de Portugal does not specify.
Read more at Dinheiro Vivo