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Portugal’s new immigration measures: strategic focus is to continue attracting foreign talent
2024/07/24

In June 2024, the Portuguese government announced an ambitious set of 41 new immigration measures aimed at modernizing the country’s immigration strategy and making Portugal a more attractive destination for foreign talents.

Portuguese Prime Minister Luis Montenegro emphasized that this new proposal aims to create a balanced and efficient system that meets the needs of the country, rather than simply opening or closing the door. These measures fall under the second pillar of the new immigration plan, with the core goal of attracting highly skilled professionals to boost economic growth and address demographic challenges.

Over the past decade, Portugal has become extremely popular with foreign workers. According to the latest data from AIMA, the number of foreigners living in Portugal increased by 171% from 2015 to 2023, reaching more than one million foreigners in 2023 (see chart below). In order to actively increase its attractiveness to foreign talent, Portugal has implemented several key measures.

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Number of foreigners with legal residence status in Portugal

In terms of age groups and labor market, PRODATA and INE are in their third The 16th National Census also pointed out that about 55% of Portugal’s foreign population is between the ages of 25 and 44, while only about 22% of the Portuguese population in the corresponding age group.

In addition, data show that Portugal’s population is aging. The proportion of the population aged 75 and above is 12%, while the corresponding proportion of foreign residents in Portugal is only 3%. The figures suggest Portugal will increasingly rely on foreign workers to fill jobs left vacant as the country's population ages.

According to the 2022 Immigration, Borders, and Asylum Report, 42,409 foreign nationals were authorized for dependent/independent professional activities, accounting for approximately 45% of all visa types. In comparison, the number of citizens of EU countries was significantly lower at 30,897, or about 33%, while only 19,345 (21%) were granted family reunion visas (see chart below).

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 Main reasons for issuing a residence permit in 2022

The "Visa-free dependent/independent professional activities" category covers the possibility to engage in dependent activities ( Professionals who are active (e.g. as employees) or independently (e.g. self-employed) do not need to obtain a residence visa in advance. This category includes IT and technology workers, medical professionals, engineers and architects, academics and researchers, financial services professionals, entrepreneurs and homeowners, etc.

These data show that the visa policies implemented by Portugal in the past, such as work visas and golden visas, have promoted the integration of skilled workers into the Portuguese job market. Given Portugal's aging population, the need for such integration remains significant.

All these figures show that Portugal needs and is committed to continuing to attract skilled workers from abroad to stabilize the pension system and promote development and growth. To achieve this goal, the new Immigration Action Plan identifies three key measures to address domestic labor shortages. These include simplifying the certification of foreign qualifications, promoting vocational training for immigrants that is consistent with national labor market needs, and increasing efforts to support the integration of foreign professionals into the local workforce.

These initiatives are aimed at ensuring that Portugal remains competitive in attracting the talent it needs to maintain its economic growth and demographic balance.

From a broader and structural perspective, the government has ended the Expression of Interest process, a significant bureaucratic hurdle, in order to simplify and speed up the immigration process and make it more accessible to qualified professionals. attraction.

In addition, the establishment of a task force to resolve more than 400,000 applications demonstrates Portugal’s commitment to solving its immigration backlog and improving its immigration system. This initiative aims to speed up the process, provide applicants with greater security and more accurate timing predictions, thereby increasing their confidence in the immigration system and making Portugal a more attractive relocation destination.

The new immigration plan emphasizes the recognition of foreign qualifications and abilities. Historically, recognition of foreign qualifications in Portugal has been a complex and time-consuming process. Applicants often face bureaucratic delays, inconsistent assessment criteria and a lack of clear guidance, which hinders foreigners' ability to work in their fields.

Although the Portuguese Ministry of Education adopted regulations in 2019 to harmonize and speed up the certification process, practical improvements are still necessary. Simplifying this process is essential to quickly integrate foreign professionals into the Portuguese labor market. By recognizing their qualifications more effectively, Portugal can tap into the skills of immigrants and address critical labor shortages in areas such as healthcare, technology and engineering.

According to a study by European Employment Services, as Portugal’s GDP grows by 6.8% in 2022 and steadily increases by 2% annually thereafter, unemployment rates have declined in almost all professional groups. Germany's Statista predicts that Portugal will continue to grow at this rate until at least 2029, but labor shortages in some areas may affect this growth.

Portuguese companies face particular difficulties in recruiting workers in the following areas:

Information and communications technology;

Contact centers/business support centers and Shared service centers (including roles such as sales, administration, human resources, accounting and management control), especially professionals with very specific language skills that are difficult to find in Portugal;

Healthcare (different professional Doctors and nurses);

Hotels, tourism, restaurants, bars and cafes;

Agriculture (seasonal employment), especially vegetable picking;

Construction (plumbers, electricians and other skilled workers);

Renewable energy (project development, installation and maintenance).

Vacancies in call centers and shared service centers do not require Portuguese. The working language can be English and related native languages. However, for other positions, especially those involving contact with the public, Portuguese language skills are required.

This highlights the importance of providing free and high-quality Portuguese courses to help foreigners integrate into the labor market and society. In this regard, measures also include labor demand surveys to update available information and better coordinate the supply and demand of foreign workers.

Facilitating foreigners’ access to Portuguese universities is another key measure to address gaps in the labor market and promote immigrants’ integration in local communities. This facilitation involves simplifying the equivalency certification of high school education and providing international students with the necessary means to live and study in Portugal.

By increasing the number of foreign students, Portugal enhances its education sector and ensures a continued influx of young, skilled professionals. This strategic move not only prepares these students to meet the specific needs of the Portuguese labor market, but also ensures a smoother integration while building connections and familiarity with the local community. As a result, many of these students may choose to stay in Portugal after graduation, further contributing to the country's economic growth and social cohesion.

Based on the principle of labor integration, the new measures emphasize simplifying the process of foreign qualification certification, which is also closely related to promoting vocational training for foreign citizens, which is the cornerstone of Portugal’s updated immigration policy. Through training programs aligned with the needs of the country's labor market, Portugal aims to ensure that immigrants can contribute effectively to the economy.

This approach not only addresses existing skills gaps, but also leverages the expertise and education foreign professionals have gained abroad, accelerating their entry into the Portuguese job market. This is particularly critical for filling positions in the above-mentioned areas, where Portugal faces labor shortages.

Recommendations to promote Portugal’s talent attraction:

1. Use technology and direct communication to speed up and use technology to simplify immigration procedures and establish direct links with AIMA to provide information about them Updated and reliable information on the application process.

 2. Strengthen education and training programs and cooperate with international universities and institutions to provide professional courses and certifications in high-demand fields such as technology, healthcare and engineering. This will ensure that both local and foreign workers have the necessary skills to meet the country’s labor market needs.

3. Strengthen public-private cooperation to encourage cooperation between government, the private sector and civil society to create initiatives that support the integration and retention of foreign talent. This can include mentorship programs, social events and career development services, which need to be tailored to immigrants’ needs.

4. Cultivate a culture of welcome Promote cultural exchange and diversity through community programs and events and celebrate diverse cultures. Establish a support network for immigrants, including language courses and cultural orientation, to help them integrate smoothly into Portuguese society.

 5. Focus on key occupations Develop immigration policies for the occupations most in need in Portugal (such as healthcare professionals, IT experts, engineers and educators). Provide these professionals with specific incentives and simplified procedures to attract and retain them in Portugal.

These measures can significantly improve the Portuguese economy and ensure the smooth integration of immigrants into local communities. However, concrete action must be taken to resolve bureaucratic bottlenecks and facilitate the entry and integration of foreign talent.

In a world where skilled workers increasingly take advantage of global mobility to choose where to live and work, Portugal must lead the way through simplified legislation and tax incentives to attract talent. Although Portugal already excels in this area with its favorable conditions - such as a pleasant climate, beautiful beaches, rich culture, excellent cuisine and friendly people - further efforts in the legislative and fiscal areas will solidify its status as status as a top destination for foreign talent.