Top European countries attracting foreign investment with Portugal as a case-study
Investment News Europe - Here is the ranking of the Top 10 European countries attracting the most foreign investment by number of projects, what are the Top 10 countries of origin of FDI projects in Portugal in 2025, and how can Portugal turn resilience into long-term competitiveness, according to the EY Portugal Attractiveness Survey 2026 October 2026. Portugal attracted 186 foreign direct investment (FDI) projects in 2025, ranking 9th country to attract the most FDI projects in Europe. One of the most relevant indicators is the growth in the weight of expansion projects of companies already installed in Portugal, which increased from 26% to 37% of the total, that is a sign of investors' confidence in the potential of the Portuguese economy. The EY study also identifies growth opportunities in areas such as AI, digital infrastructure and advanced industry.
1 - Ranking of the Top 10 European countries attracting the most foreign investment projects:
1 - France
France ranks No. 1 in the ranking of the Top 10 European countries attracting foreign investment by number of projects, with 852 FDI projects in 2025. This represents a decrease of 17% compared to 2024.
2 - United Kingdom
The UK ranks 2nd in the ranking of the Top 10 European countries attracting foreign investment by number of projects, with 730 FDI projects in 2025. This represents a decrease of 14% compared to 2024.
3 - Germany
Germany ranks 3rd in the ranking of the Top 10 European countries attracting foreign investment by number of projects, with 548 FDI projects in 2025. This represents a decrease of 10% compared to 2024.
4 - Turkey
Turkey ranks 4th in the ranking of the Top 10 European countries attracting foreign investment by number of projects, with 383 FDI projects in 2025. This represents an increase of 20% compared to 2024.
5 - Spain
Spain ranks 5th in the ranking of the Top 10 European countries attracting foreign investment by number of projects, with 376 FDI projects in 2025. This represents an increase of 7% compared to 2024.
6 - Poland
Poland ranks 6th in the ranking of the Top 10 European countries attracting foreign investment by number of projects, with 285 FDI projects in 2025. This represents an increase of 10% compared to 2024.
7 - Italy
Italy ranks 7th in the ranking of the Top 10 European countries attracting foreign investment by number of projects, with 206 FDI projects in 2025. This represents a decrease of 8% compared to 2024.
8 - Belgium
Belgium ranks 8th in the ranking of the Top 10 European countries attracting foreign investment by number of projects, with 187 FDI projects in 2025. This represents a decrease of 11% compared to 2024.
9 - Portugal
Portugal ranks 9th in the ranking of the Top 10 European countries attracting foreign investment by number of projects, with 186 FDI projects in 2025. This represents a decrease of 5% compared to 2024.
10 - Netherlands
Netherlands ranks 10th in the ranking of the Top 10 European countries attracting foreign investment by number of projects, with 159 FDI projects in 2025. This represents an increase of 8% compared to 2024.
2 - What are the Top 10 countries of origin of FDI projects in Portugal in 2025?
1 - United States
The US ranks No. 1 country of origin of FDI projects in Portugal, with a 17% share of FDI in 2025.
2 - Germany
Germany ranks 2nd country of origin of FDI projects in Portugal, with a 10% share of FDI in 2025.
3 - France
France ranks 3rd country of origin of FDI projects in Portugal, with a 10% share of FDI in 2025.
4 - United Kingdom
The UK ranks 4th country of origin of FDI projects in Portugal, with a 9% share of FDI in 2025.
5 - Spain
Spain ranks 5th country of origin of FDI projects in Portugal, with a 7% share of FDI in 2025.
6 - Brazil
Brazil ranks 6th country of origin of FDI projects in Portugal, with a 7% share of FDI in 2025.
7 - Denmark
Denmark ranks 7th country of origin of FDI projects in Portugal, with a 5% share of FDI in 2025.
8 - Netherlands
Netherlands ranks 8th country of origin of FDI projects in Portugal, with a 5% share of FDI in 2025.
9 - Switzerland
Switzerland ranks 9th country of origin of FDI projects in Portugal, with a 5% share of FDI in 2025.
10 - Belgium
Belgium ranks 10th country of origin of FDI projects in Portugal, with a 3% share of FDI in 2025.
3 - Here is an Overview of Portugal´s Foreign Direct Investment sector:
Portugal recorded a 5% decline in FDI projects in 2025, compared with a 7% contraction across Europe. Portugal proved more resilient than Europe in 2025, but maintaining its position will require competing with markets that are gaining market share. This resilience is also visible over the longer term: while European FDI remains below 2019 levels, Portugal continues to attract more projects than before the pandemic.
Expansion projects in Portugal point to continued confidence among existing investors. The share of expansion projects increased from 26% to 37% of the total in 2025, indicating that companies already established in Portugal continued to reinvest and scale their operations. New projects still represented 63% of total FDI, showing that
Portugal continues to combine reinvestment with a meaningful pipeline of first-time projects.
Foreign Direct Investment remains concentrated in Portugal’s two main hubs, as Greater Lisbon and Northern Portugal accounted for 86% of FDI projects in 2025. Lisbon strengthened its position further, reaching 103 projects and 55% of the national total, reinforcing its position as Portugal’s primary destination for software, IT and business services. Northern Portugal remained the second-largest destination, with 57 projects and continuing to specialize in technology-driven investment.
Technology and business services remain the backbone of Portugal’s FDI, while investment gradually diversifies. Software and IT services (24%) and business services and professional services (20%) together accounted for almost 45% of FDI projects in 2025. Investment intentions are strengthening among high-tech and business services companies Investment intentions vary markedly by sector. In 2026, 66% of high-tech respondents plan to establish or expand operations in Portugal, up 11 p.p. vs. 2025, while business services increased by 2 p.p. to 58%.
4 - Here are the sectors that attract the most Foreign Direct Investment in Portugal:
AI, cloud and data centers rank 1st as investors’ preferred growth platform in Portugal, supported by talent, green energy as well as political and policy stability.
Logistics and supply chain platforms rank 2nd as investors’ preferred growth platform in Portugal.
Sustainable reindustrialization and advanced manufacturing rank 3rd as investors’ preferred growth platform in Portugal.
Life sciences, pharmaceuticals and biotechnology rank 4th as investors’ preferred growth platform in Portugal.
Renewable energy and energy infrastructure rank 5th as investors’ preferred growth platform in Portugal.
Global business services and regional headquarters rank 6th as investors’ preferred growth platform in Portugal.
Defense and dual-use technologies rank 7th as investors’ preferred growth platform in Portugal.
Tourism, consumer and real-estate-led investment rank 8th as investors’ preferred growth platform in Portugal.
5 - How can Portugal turn resilience into long-term competitiveness?
According to the EY Portugal Attractiveness Survey 2026 October 2026, Portugal can boost competitiveness and attract higher value-added investment, by speeding up licensing processes, improving access to finance, investing in skills, and ensuring a more efficient and predictable business environment.
Portugal must turn resilience into execution by strengthening the conditions to finance, deliver and scale the next generation of investment. This can be done by Building an investment-ready environment to help convert investor interest into delivered and scalable projects, and by Capturing the next wave of high-value investment by strengthening its proposition in AI and digital infrastructure, in advanced industry, in high-value services and in innovation-driven investment, supported by a stronger international investment brand.
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