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What Are the Advantages of Nearshoring Portugal for Your Company?

Portugal is a small state in southwestern Europe. The population is about 10.5 million people. Portugal  is a very industrialized country and it takes a higher position in economics of Europe, so it is favorable ground for investment and labor employment.

The IT sector in Portugal is growing by leaps and bounds – there are about a thousand new startups a year, some of which are quite successful in both Portugal a nearshoring innovation and around the world. This country is attractive for IT startups because renting offices and housing for employees is half the price here than in London or Berlin. Large companies such as Bosch, Microsoft, Mercedes-Benz with nearshoring to Portugal place their startup projects in Lisbon and Porto.

Advantages of Nearshoring in Portugal

Thanks to the annual appearance of about 70,000 – 90,000 new tech talents, many foreign companies from other countries prefer to hire a development team in Portugal. Today, the Portuguese startup ecosystem is an excellent environment for launching a project, testing it and hiring quality and inexpensive workforce. LandingJobs conducted research of more than 1000 jobs in Portugal, which showed the level of developers’ salaries. So, Back-end and Front-end developers earn between $22,000 and 30,000 a year, and a UI/UX designer receives an annual salary of $17,000-25,000. Also, an Android developer wage is about €20,671 according to PayScale.

cost of nearshore services in portugal

To attract foreign entrepreneurs, the Portuguese government has introduced a preferential tax regime, which has led to greater growth in the startup industry. The Special Tax Resident program allows highly qualified specialists included in a special list of the tax service, which also includes computer engineers and technicians, to reside permanently in the country, having been exempted from income tax on income from foreign sources for 10 years. If an entrepreneur who has received special tax status has a source of income in Portugal, then he will be taxed at a fixed rate of 20%.

Why choose nearshoring Portugal? Portugal shares Western European cultural and business values. There is also a highly developed technology and business infrastructure. In combination with the competitive cost of the services of Portuguese programmers and political stability, nearshoring in Portugal retains its leadership in outsourcing IT specialists. According to Gartner, Portugal remains one of the most attractive places for outsourcing and nearshoring in particular.

If you are in the process of searching and have chosen Nearshore Services in Portugal, then pay special attention to the following details. Check the experience of similar projects of the developer or agency you plan to hire. You can ask for recommendations regarding technical skills and the quality of the work performed. Make sure that the potential partner is open to cooperation and dialogue.

Nearshoring Portugal, Ukraine and Germany

Nowadays, Nearshore in Portugal attracts investors with a profitable financial system, such as support for startups, low-cost rental housing, and many others. However, how much better are these conditions in Portugal than in Poland and Ukraine?

choosing between nearshoring portugal or ukraine

Mostly, Poland is chosen by nearshoring large companies such as Oracle and Microsoft. In the early 2000s, Poland set itself the goal of becoming the leading software engineering location in Europe, and as a result, now to hire a Java developer in Poland, you must expect to cover a developer salary of $90,000 annually.

Regarding Ukraine, such applications as Kickstarter, WhatsApp and Petcube were developed here. Many Ukrainians work for Electronic Arts and Ubisoft through software outsourcing companies. Ukraine is also considered as a profitable country for the IT sector for nearshoring. Ukraine takes the 4th place among the most educated nations in the world, the number of workers in the IT industry totals about 15,000 people. Due to the small difference in time zones with other European countries, a team in Ukraine is convenient for business communications.

Why Mobilunity?

Most of the companies that are engaged in nearshoring in Europe believe that prices are the only things worth looking at when choosing a country for cooperation, what are they wrong about. High-quality project management requires not only a favorable financial and political situation in the country but also a convenient time zone, favorable pricing policy, and a large technical talent pool. Nearshore service in Portugal offers a large selection of programmers, but at the same time, Ukraine occupies a leading position in nearshoring today. If you need the services of developers of different levels and qualifications, Mobilunity is the best match.

Looking for efficient developers for your business? Don’t wait, starting working with our team today!

Request a quote

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  • Mozambique +258
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  • Nauru +674
  • Nepal +977
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  • New Caledonia +687
  • New Zealand +64
  • Nicaragua +505
  • Niger +227
  • Nigeria +234
  • Niue +683
  • Northern Mariana Islands +1670
  • Norway +47
  • Oman +968
  • Pakistan +92
  • Palau +680
  • Panama +507
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  • Rwanda +250
  • Saint Barthelemy +590
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  • Saint Lucia +1758
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  • Saint Vincent And The Grenadines +1784
  • Samoa +685
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  • Serbia +381
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