Portugal Achieves Credit Upgrade as S&P Lifts Rating to A+

Portugal has received a major endorsement from the international financial community, with S&P raising the nation’s sovereign credit rating from A to A+.

S&P Global, the international credit rating agency, assesses countries on the basis of fiscal management, economic resilience and overall stability. The upgrade highlights Portugal’s steady progress in strengthening its economy and boosting its standing as an attractive hub for global investment.

A key factor in S&P’s decision was the expectation of further external financial deleveraging. The agency stressed that Portugal continues to demonstrate resilience in the face of global geopolitical uncertainty and shifting trade dynamics.

Importantly for investors, S&P also noted that Portugal is expected to be largely shielded from the potential fallout of the EU-US trade deal. The nation’s competitive tourism sector and ongoing focus on debt reduction are anticipated to balance out any risks from Eurozone tariff adjustments.

The outlook for 2025 includes rising defence spending and a slight cooling in growth, though S&P made clear: “Portugal's debt as a share of GDP will continue to decline, albeit at a slower pace during 2025–2028.”

Growth is forecast to regain momentum in 2026, driven by an upswing in private investment before levelling off between 2027 and 2028.

Adding to confidence, the government has recently unveiled a €4 billion, decade-long plan to modernise and expand Portugal’s major ports, with private investors expected to provide about 75% of the funding.

Paul Sheedy, international advisor to the Portugal Future Fund, an alternative investment vehicle qualifying for the Golden Visa, commented: “We have already seen significant investment coming from around the world this year from individuals who want to take advantage of the strong opportunities and lifestyle that Portugal offers.

“We have seen that particularly in markets such as media, technology, healthcare, luxury living, and tourism and hospitality.”

S&P has also shifted Portugal’s outlook from positive to stable, signalling confidence in the government’s ability to maintain sound fiscal and economic policies in the medium term.

Investor optimism is equally evident in recent research by Ernst & Young (EY). The consultancy found that 84% of entrepreneurs intend to expand or launch operations in Portugal, well above the Eurozone average of 72% and the UK’s 69%. Meanwhile, 77% of global executives believe the country’s investment appeal will strengthen in the next three years, compared with 67% for the wider Eurozone and 59% for the UK.

Paul Stannard, Chairman and Founder of Portugal Pathways and the Portugal Investment Owners Club, added:
“Portugal is uniquely positioned as a safe and stable investment destination with its vibrant culture and growing international reputation for investment and relocation.

“For HNWIs, affluent families, and institutional investors, the combination of economic stability, tax incentives, and market growth projections in key sectors of its economy makes Portugal a compelling proposition.

“There has been a clear uptick in interest in the past year for Portugal’s Golden Visa and the new Tax Incentive for Scientific Research and Innovation (IFICI), also known as the NHR 2.0 tax regime, which was launched at the beginning of 2025.”

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Contact Portugal Future Fund to invest in Portugal's Golden Visa residency-by-investment programme

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About Portugal Future Fund

The Portugal Future Fund strategically invests in key sectors, driving growth and innovation across Portugal. Approved for Portugal’s Golden Visa residency-by-investment, it offers a unique opportunity for impactful and rewarding participation.

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Disclaimer: The information on the Portugal Future Fund website and in email communications is for general informational purposes only and should not be construed as legal, tax, or financial advice. You should consult and check with a qualified professional advisor before relying on any information provided on this website or in email communications. As it relates to investments in Golden Visas or other wealth management solutions offered by regulated and professional advisors, it is important to note that past performance is no guarantee of future returns. Private equities can be highly illiquid and come with risk and should always be under professional independent advice. Portugal Future Fund operates under CMVM regulations but is not directly endorsed by the CMVM or any governmental entity.

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