Foreign direct investment (FDI) in Portugal dropped 34.9% in 2025, totaling €8.51 billion, of which €3.905 billion was related to real estate, according to data released today by the Bank of Portugal.
FDI inflows in 2025 decreased compared to €13.071 billion in 2024, while real estate investment rose 10.4% over the same period.
Investment in debt instruments was negative €3.4 billion, partly reflecting corporate group reorganizations.
European countries accounted for the largest FDI in Portugal last year (€5.775 billion), led by Luxembourg (€1.1 billion), United Kingdom (~€0.9 billion), and Germany (€0.8 billion).
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On the other hand, Portuguese direct investment abroad totaled €6.704 billion (down from €7.593 billion in 2024). This was mainly explained by €4.2 billion in equity investment in non-resident entities and nearly €2.5 billion in debt instruments.
Most of Portuguese FDI abroad was directed to European countries, totaling €5.838 billion, particularly:
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Netherlands (~€2.3 billion)
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Spain (€1.7 billion)
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France (€0.6 billion)
By the end of 2025, the stock of FDI in Portugal reached €213.731 billion, up from €201.384 billion in 2024, equivalent to 70% of Portuguese GDP. The stock of Portuguese FDI abroad increased 9.2% to €78.62 billion, approximately 26% of GDP.
The data also show that income from foreign-held capital amounted to €13.4 billion paid to non-residents, up by ~€1.4 billion from the previous year, while Portuguese investment abroad generated €5.4 billion, similar to 2024.
Regionally, Greater Lisbon concentrated the largest FDI in Portugal (€105.4 billion), followed by Norte (€37.2 billion) and the Algarve (€21.7 billion).
