A recent INE survey on contextual costs lists judiciary delays, administrative hurdles and regulatory uncertainty among the top barriers to business activity. The results have prompted interest from ministry study offices but firms say reform is needed to reduce delays and improve competitiveness. Companies that trade or invest in Portugal should track proposed changes to administrative procedures and plan for continued compliance costs in the short term.
Businesses blame bureaucracy for stalled growth
Friday, 27 February 2026AI summary
Context & Explainers
The National Institute of Statistics (National Institute of Statistics (Instituto Nacional de Estatística, INE) is Portugal’s official body for collecting and publishing data on population, economy and travel; it reported that trips by residents abroad rose 21.9% year-on-year to 975,000 in Q2 2025. Expats can use INE data for planning travel, business decisions or understanding tourism trends in Portugal via its website and published bulletins.
Contextual costs (custos contextuais) are the extra expenses businesses face because of the local economic and regulatory environment, such as administrative burdens, licensing delays, taxes, energy prices and poor infrastructure. Portugal's Instituto Nacional de Estatística (INE) tracks these costs because they raise operating expenses and can make the country less attractive for investment; entrepreneurs should include them when budgeting or comparing Portugal with other EU markets.
