How are companies doing in Portugal? Construction Grows, Closures Continue

The cards are being shuffled again in the Portuguese business world. When we look at the general picture as of the end of July this year, there is a slight decrease (4.2%) in the total number of companies established compared to last year; However, there are some sectors that have the wind behind them. The construction industry, in particular, draws attention with its dynamism in the field.

Construction Sector Stepped on the Gas

Although a slowdown was felt across markets, the construction industry grew by 12% this year, resulting in the establishment of 4,818 new companies by the end of July.

If you ask in which regions this growth is felt most, the list is as follows:

Lisbon: 26%

Porto: 17%

Braga: 10%

Setúbal: 10%

In addition to construction, Information and Communication Technologies continues its growth trend with 2,400 new companies. The 12% increase, especially in the field of IT consultancy and programming, once again shows the power of digital.

What is the Situation in Geographic Distribution?

The appetite for starting a business across the country is not the same everywhere. The increase in company establishments was seen only in the regions of Santarém (3.3%), Coimbra (2.1%) and Vila Real (11.1%). On the other hand, things have slowed down a bit on the islands, especially Madeira; establishments here decreased by 20%.

What About Closures and Bankruptcies?

Even though new companies are opened, the difficulties of the market continue to close the doors.

During the period January - July 2026, 6,862 companies closed across Portugal.

More than half (51%) of the closures are in the Business Services, Retail, General Services and Accommodation/Food sectors.

On the other hand, 1,216 new bankruptcy cases were filed as of the end of July. The most striking leap in this field was experienced in the Real Estate sector with an increase of 107%. Restaurants are also among those affected by the bankruptcy wave, with an increase of 23%.

Source: Idealista / Informa D&B Barometer (Cátia Colaço)

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