The Portugal job market can be challenging, however, especially with many industries shrinking as a result of the recent bailout. The travel and service sectors account for more than half the jobs, making it especially ideal for sales, marketing, tourism, and engineering graduates. Indeed, even in this economic environment some areas continue to flourish—for instance, with tourism stepping up to boost the economy, the hospitality industry is a hotbed of jobs. Opportunities abound particularly in design, management, food service, finance, and customer relations.

The market isn’t without its challenges, of course. For one thing, the concentration of jobs in just a few industries has resulted in a high unemployment rate. That means expats will have to compete with locals for many of the jobs—and residents have the ready advantage of speaking the language. Since most of the thriving sectors involve considerable contact with the public, those who speak only English may not be prioritized.

Fortunately there are alternatives for English speakers, at least for temporary work while learning Portuguese. Property, agriculture, and forestry are some of the more stable sectors, and most people can get by in these settings speaking mostly English. Call centers (e.g. customer service representatives) are also beginning to grow, and native or near-native English can be a plus in most of them.

Another way to increase your chances of finding work is to move out of the capital. Many Portuguese are already flocking to Lisbon to get a slice of the already saturated job market, even as other areas are on the rise. Some good alternatives are Porto (the famous wine region), Amadora, Braga, Funchal, and Coimbra.

As is often the case with international employment, your qualifications may not be recognized at the same level in Portugal as your home country. Most British and American institutions are accredited in the country, but you may have to take additional courses to focus your skills on the Portugal market. Most graduates from mainland Europe and many surrounding islands can visit a National Academic Recognition Information Centre (NARIC) in the area to see how their credentials stack up.

The Portugal tax year ends on December 31 of every year. The filing deadline is April 30 for individuals and May 31 for companies. Taxpayers can make up to three advanced payments in July, September, and December, with a fourth payment of 1% allowed on the day of the filing.

Like most countries, Portugal computes tax rates according to brackets, where higher earners pay a higher rate than lower earners. This applies to both individuals and businesses, with exemptions and deductions where applicable, and regular adjustments for inflation. For individuals, the rate is progressive, meaning it adjusts every year. In 2010, the individual income tax rate ranged from 10.5% to 42%. The minimum rate applies to those earning €4,793 or less, while the maximum is for incomes of €64,624 and up.

For corporations, the rate was 12.5% for those earning €12,500 or less, and 25% for those earning more. A local tax of up to 1.5% is also added, bringing the total up to 26.5%. However, in Azores and Madeira, which are free-trade zones, certain companies can qualify for reduced tax rates. This depends on the type of company and the year it was established in these zones.

Companies in Portugal also pay capital gains tax on top of regular income tax. Capital gain is profit earned from the sale of assets such as stocks and real estate. If proceeds from these sales were held for more than a year, the company only pays tax on 50% of the total, provided they were reinvested in full. Dividends and capital gains earned by holding companies are usually exempted, as are some types of dividend income.

Individuals selling real estate and using the proceeds to buy a new residence are exempt from capital gains tax. However, they must have used the old home as a primary residence and live in the new one as well. The sale and purchase must take place within a given time frame to qualify for the exemption. Proceeds from selling shares are subject to a 10% tax rate if held for less than one year.

Portuguese is the sixth most widely spoken language in the world. Besides Portugal, it is an official language in its former colonies, which includes Brazil, Angola, Guinea-Bissau, Cape Verde, Sao Tome and Principe, Macau, and East Timor. Around 236 million people speak it as a first language, and it is a secondary language for about 40 million more.

Basic phrases such as Bom dia, Boa tarde, and Boa noite (good day, good afternoon, good evening) can go a long way in befriending locals. Como você está means “how are you,” and é um prazer conhecê-lo means “it’s a pleasure to meet you.” Practice these “magic phrases” and you’re safely on your colleagues’ good side.

Reading up on Portuguese literature can also provide good practice, especially if your goal is to become fluent. There are lots of good reads in Portuguese—some of the most well-known writers are Gil Vicente, who wrote some of the most important plays in Portuguese culture; José Saramago, who won the 1988 Nobel Prize for Literature; and Jose Luis Peixoto, an award-winning contemporary writer and columnist.

If you already know other Latin-based languages such as Spanish, French, or Italian, learning Portuguese should be easier. They have many of the same concepts—male and female nouns, verb conjugations, multiple past tenses—and many of the words have the same root, so it’s easy to build a vocabulary.

You’ll want to have at least some basic knowledge when you arrive in Portugal, enough order your morning coffee and read road signs. Immersion is still the best way to learn, however. Try to speak in Portuguese even when the other person is willing to speak English. Tell them you’re working on your Portuguese and they’ll be more than happy to give you a hand.

If you don’t have the time for full-scale lessons, learning business Portuguese may be an alternative. These courses are offered at language centers worldwide, although you may get better rates in a Portuguese-speaking country. In Lisbon, some of the most popular places are Centro de Linguas on Avenida da Republica and the Escuela Europea de Linguas on Avenida Miguel Bombarda.

Foreign investment has always played a large role in the Portuguese economy, with its long history of political and social stability attracting investors in the past few decades. A productive and well-trained labor force also contributes to its economic strength.

The average Portuguese worker earns €804.22 per month; the minimum wage is €475 according to current regulations. Portugal currently has the lowest GDP per capita in Western Europe and one of the lowest per-person incomes in the EU, a result of the recent recession. Unemployment was at 11% as of 2010, up from 7.3% in late 2008. A few EU members and some of its territories, including Brazil, have pledged to help the country get back on its feet.

For the past 20 years, Portugal’s economy has been increasingly based on exports rather than public consumption. The country exports some 75% of its cattle and agricultural produce, its main source of revenue. Wheat and corn are the main crops, although vegetables, herbs, and olive oil also make up a significant part of the total. The country also has a strong fishing industry, with the large expanse of the Atlantic bordering it to the west. Marine fish such as sardines, tuna, and mackerel are widely consumed and exported; canned seafood makes up an active and fast-growing market.

Portugal is also the world’s largest producer of cork oak, and many industries are based around it. These include footwear, furniture, and wood and paper products. The clothing industry has also grown considerably in the last several years; although the recession has somewhat weakened it, many companies have stayed in the game by branching out into menswear.

Wine lovers may associate the country with Port wine, most of which is produced in the northern region of the Douro River. The region’s microclimate is ideal for the cultivation of grapes, as well as other produce such as almonds and olives. It is the oldest wine region in the world, and produces some 15 million liters of wine every year.

Family and friends

Portuguese families like to keep close, and extended family members stay in contact even from opposite ends of the country. Family and friends also play important roles in work and professional advancements; in fact, nepotism is seen as a positive move as it implies that one entrusts business to people he knows he can trust.

When meeting someone for the first time, it’s best to be reserved but polite. Handshakes are accompanied by direct eye contact and a verbal greeting (“Bom dia,” “Boa tarde,” or “Boa noite” for good morning, good afternoon, and good evening respectively). After the first meeting, there’s usually less noticeable formality—men hug and shake hands while women exchange kisses on the cheek.

Address new acquaintances with “senhor” and “senhora” followed by the surname; use their first names only when they expressly ask you to. People with university degrees are given honorific titles

Business relations

The Portuguese are conservative, traditional, and very polite. Business acquaintances, sometimes even partners who have worked together for years, regard each other with an air of formality. However, a bit of humor would not be out of place in business meetings, provided you’ve established good rapport and are comfortable enough with each other.

Hierarchy is highly respected in Portugal. Most businesses follow a vertical structure (positions in distinct degrees of superiority, one on top of the other) even as other European companies have adapted a horizontal approach (management divided among a group of equals). Authority is generally concentrated in one or two people who are trusted with most decisions, and those at the top must be treated with respect.

Dining and etiquette

When a local invites you to dinner, bring wine only if you know what the hosts prefer. Otherwise, simply bring flowers and chocolate for the hosts—but avoid chrysanthemums and lilies, as they are funeral flowers. Open gifts as soon as you receive them; others will do the same with your gifts. The host or hostess usually says “Bom appetito” at the beginning of the meal; that’s your cue to dig in.

Appearances play a big role in social and business relations. Even working class people tend to be fashion-conscious, so your choice of clothes can say a lot about you. It’s not so much about brand names as it is about quality; good fabrics and color choices can help a lot in the way of first impressions.

Lisbon, like any major city, offers a variety of accommodations from €25-per-night hostels to luxury hotels charging upwards of €400 daily. On the average, prices are low compared to most European capitals, but stringent rules ensure that even the cheapest hotel delivers top quality. The downtown neighborhoods of Baiza, Rossio, Chiado, and Alfama are generally safe and close to most of Lisbon’s attractions.

The Britania Hotel, one of the 25 Traveler’s Choice hotels at TripAdvisor.com, sits right inside Lisbon’s historic center. The art deco style makes it easily recognizable from the Avenida da Liberdade, a major tourist thoroughfare. All 33 rooms are equipped with satellite TV, free wireless internet, a mini bar, and coffee and tea facilities. Business travelers make up most of its clientele, although the bar, lounge, and other amenities are also great for relaxation.

For those who can afford more luxury, the Palacio Belmonte Hotel may be a good option. Comprising a mere eight suites (one of which has four floors), the building itself dates back to the 15^th century and has been completely restored, with terrace views of the Lisbon skyline to boot. A garden with a granite pool greets visitors at the center, and each room is adorned with modern art and antique furnishings. Prices generally start at €350 per night.

Another historic hotel is the Lapa Palace, perched on a hilltop by the Tagus River in Lisbon’s diplomatic quarter. Although popular with business travelers, the hotel offers ample luxuries that make it a favorite among couples and honeymooners as well. The 19^th-century building houses a wellness center, VIP room, subtropical garden, and a seafood restaurant. The price range is from €300 to €700 per night.

A few blocks away is Hotel Borges, in the middle of the Baixa (Lower Town) district where the Praça da Figueira, the Praça do Comércio, the Belem Tower, and the Tajo River are within easy access. It caters more to casual tourists than business travelers, but is an affordable alternative for those who don’t want to splurge. Amenities include an in-house restaurant, car rental, and laundry services. Nightly rates start at €99, but prices tend to go up in peak months.

Frommer’s recommends local guesthouses, known as pensãos, for those visiting on a budget. Visitors get one room with a sink and hot and cold water, with bathrooms usually shared with other guests. Many of them can be found on inner streets next to the Avenida da Liberdade, such as Rua da Gloria and Rua das Portas de Santo Antão.

Entrepreneurs recognize Portugal as the most business-friendly place in the European Union. In fact, foreign investments have always played a key role in the Portuguese economy; multinationals like Delphi, Mitsubishi, Volkswagen, and Microsoft have based at least some of their business here.

Several things make Portugal attractive to businessmen. Its operational costs are among the lowest in Europe, it has a spotless track record for investments, and it offers a wide range of locations at reasonable prices. The workforce is strong, educated, and open to learning new skills. Portugal is also a founding member of the EU and has excellent relations with the union, ensuring a reliable support system for investors.

Portugal’s biggest industries are agriculture and food products, oil, chemicals, and materials such as base metals, plastic, rubber, leather, wood and cork. Most small businesses revolve around these industries (e.g. footwear and clothing, paper production, machinery). Many of the same products make up its leading import commodities, so there’s a constant stream of trade to keep entrepreneurs busy.

The most popular business structure in Portugal is the private limited company, locally known as the Sociedade por Quotas Limitada. This works well for small to medium businesses with a small workforce and localized operations, which make up a large part of the Portuguese business landscape. Larger businesses may incorporate as public limited corporations (Sociedade Anónima), limited co-partnerships (Sociedade por Quotas), and general partnerships (Sociedade em Nome Collectivo). EU residents can work and live freely in Portugal, but others must secure a residency card, tax number, and social security number.

It must be noted that a lot of paperwork goes into starting a business in Portugal. There’s a lot of red tape involved, and wait times can stretch for weeks or months. The easiest way to get into the market is by partnering with a local, or buying up an existing business. Although most officials and businessmen speak English, many documents will be in Portuguese and knowing the basics will make things much easier.

A business plan is always a good idea—not only will it help you get things done faster, it’ll also help you get a feel for the business environment. Consider consulting a lawyer or financial planner for local advice, and to represent you when dealing with authorities. Also, read up on local business etiquette—some practices, such as dressing up and arriving on time, are taken up differently from what most British and American investors are used to.