Business Customs

2005 was a calm year compared to 2004 which was an upbeat year for Portugal both culturally and economically. Various infrastructures were upgraded to host two international events, the Rock in Rio and the European Football Cup, both held in the summer of 2004. Portugal was left with a good road system and one of the best wireless telecommunications systems in Europe. In the summer of 2006 Portugal will once again the Rock in Rio Mega Concert as well as the sub-21 European Football Cup.

Courtesy, in business and other spheres, is simply expected and easily extended. Legal contracts don’t have the strength in business associations that personal confidence, built over years of experience, offers. Aggressiveness is not yet keen in marketing because it may be interpreted as socially offensive. Pragmatism, of the American variety, is respected but only when presented as a possible option to be taken, not as an opportunity that must be breathlessly seized.

The Portuguese business community is very formal and titles such as Doctor, Engineer, and Architect are commonly used. Make sure you ask the title of the person you are meeting with and always use it with the person’s last name. Writing in red ink is considered an insult and therefore never used in the business community. When greeting a businessperson a handshake is proper.

In terms of everyday business the Portuguese are correct and civil. They respect the time of their appointments and expect the same from others. They are thorough to a fault, often poring over all the documents relative to a negotiation, and not too ready "to just hit the highlights". This is done partly to be careful (conservative) but also to demonstrate their grasp of the matter - - exhibiting pedantic merit rather than pragmatic merit. Many Portuguese speak two, often three languages, English being the preferred
second language.

Housing in Portugal is at European standards but so are the rents. Executive location costs in Portugal are now in the same category as any major commercial center in the European Union.

Food supplies are plentiful though there are seasonal variations in prices for perishable items. Supermarkets are fully stocked. Prices are very close to those found in the United States and often exceed them for packaged goods.

Travel Advisory

There are no travel advisories for Portugal nor have there been for many years.

Visa Requirements

No visas are required to visit Portugal for stays of 90 days or less.

U.S. Companies that require travel of foreign businesspersons to the United States should allow sufficient time for visa issuance if required. Visa applicants should go to the following links.

State Department Visa Website: http://travel.state.gov/visa/index.html

United States Visas.gov: http://www.unitedstatesvisas.gov/

American Embassy Lisbon: http://www.american-embassy.pt

U.S. Companies that require travel of foreign businesspersons to the United States should be advised that security options are handled via an interagency process. Visa applicants should go to the following links.

State Department Visa Website: http://travel.state.gov/visa/index.html

United States Visas.gov: http://www.unitedstatesvisas.gov/

U.S. Consulate General in Lisbon: http://www.american-embassy.pt/

Telecommunications

Portugal is a fully "wired" country with regard to communications, making available all the services found anywhere else in Europe: long-distance calls on Stateside credit cards; cellular telephones (can be rented from Vodafone at the airport departures area); video-conferencing in state-of-the-art facilities; Internet services; e-mail, etc.

Transportation

Portugal has direct airline connections from Lisbon with all the major cities in the European Union, New York, Boston and Newark in the United States, a number of Portuguese-speaking countries in Africa, and with the major cities in Brazil. Porto serves fewer cities directly in the European Union, none in North America, but does serve major cities in Brazil.

Language

Many Portuguese speak two, often three languages, English being the preferred second language. English is a widely spoken second language in Portugal and American business travelers generally can conduct their meetings with business and government contacts in English.

Health

Health care in Portugal is a constitutional right, which means that the public health facilities are overburdened, and, therefore, not able to offer the level of service considered normal in the United States. There are a number of private clinics and small private hospitals that are adequate, plus there are several new hospitals planned to be built until 2008 to offer better conditions to the patients.

Local Time, Business Hours, and Holidays

Local time is Central European Time (MEZ). Normal business hours are from 09:00 AM through 06:00 PM. Stores are open from 09:00 AM to 07:00 PM but shopping malls operate from 10:00 AM to 11:00 PM everyday of the week and on public holidays (except for Christmas and New Year).

The American Embassy in Lisbon is open from 08:00 AM to 05:00 PM and it is closed for business on both American (A) and Portuguese (P) holidays.

LEGAL HOLIDAYS FOR 2006

The Embassy is closed for business on both American (A) and Portuguese (P) holidays.

Listed below are the holidays that will be observed by the Mission in 2006:

Portuguese Holidays

January 1 - P - Sunday - New Year’s Day
February 28 - P - Tuesday - Carnival
April 14 - P - Friday - Good Friday
April 16 - P - Sunday - Easter
April 25 - P - Tuesday - Liberty Day
May 1 - P - Monday - May Day
June 5 - P - Monday - Espirito Santo Day (In Azores Only)
June 10 - P - Saturday - Portugal Day
June 13 - P - Tuesday - St. Anthony’s Day - Lisbon Only
June 15 - P - Thursday - Corpus Christi
August 15 - P - Tuesday - Assumption Day
August 21 - P - Monday - Funchal Day - Funchal Only
October 5 - P - Thursday - Proclamation of the Portuguese Republic
November 1 - P - Wednesday - All Saints’ Day
December 1 - P - Friday - Restoration of Portuguese Independence
December 8 - P - Friday - Feast of Immaculate Conception
December 25 - P/A - Monday - Christmas Day

American Holidays

January 2* - A - Monday - New Year’s Day
January 16 - A - Monday - Birthday of Martin Luther King, Jr
February 20 - A - Monday - Washington’s Birthday
May 29 - A - Monday - Memorial Day
July 4 - A - Tuesday - Independence Day
September 4 - A - Monday - Labor Day
October 9 - A - Monday - Columbus Day
November 10 - A - Friday - Veterans Day
November 23 - A - Thursday - Thanksgiving Day
December 25 - P/A - Monday - Christmas Day

*January 1, 2006, (the legal public holiday for New Year’s Day) falls on a Sunday. Monday, January 2, 2006, will be treated as a holiday.

Temporary Entry of Materials and Personal Belongings

Personal belongings may enter the country without barriers imposed by the Portuguese Customs. If Portuguese Customs see that personal belongings are of very high value (such as jewelry, and other high end electronic material) they may require a money guaranty that will be reimbursed when leaving the country.
Entry of materials to hand out at trade shows such as promotional literature, gadgets, tourism and technical information and brochures may enter the country but the company carrying these will have to fill out a customs request to bring these into the country and hand them out.

Companies that plan to Temporarily bring of materials and equipment, which is not for sale, will be requested to fill out a formal request of Temporary Importation of Products.

The Portuguese Customs Authority supplies this form upon entering the country. This will enable the U.S. company to take the equipment back without having to pay customs.

If the equipment is sold while in Portugal, the U.S. company will have to pay the duties inherent to the specific equipment.