Why Hire Software Developers in Portugal in 2023

Offshore Development
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Why Hire Software Developers in Portugal in 2023

Thinking of Portugal is usually done in the context of leisure. After all, the country is a rather popular holiday destination from northern and eastern European nations and further afield. 

But besides featuring long, sun-bleached coastlines, Portugal is home to a rich, vibrant, and very skilled workforce whose software development skills rank among the best in Europe. This article will explore why Portugal can become a prime offshoring destination for your company's software development projects.

Portugal: quick figures

  • According to the 2021 Global Peace Index, Portugal ranks 4th among 163 countries. This index measures the 'peacefulness' of a nation.
  • Portugal's capital, Lisbon, ranked 4th in the Quality of Urban Living Index in 2020
  • There are approximately 131,000 Portuguese developers for hire in Portugal at any time
  • Around 50,000 people graduate in IT fields every year
  • Portugal's education system ranks 35th in the world
  • The country's timezone is almost at parity with many European capitals. (Portugal timezone is UTC+0)
  • Google, Zalando, Mercedes-Benz, Volkswagen, Bosch, Siemens, and Amazon are among the international corporations with a presence in Portugal
  • English proficiency among Portuguese people ranks 7th out of 100 countries polled
  • As of 2022, Portugal's software development industry was worth just over €914m
  • 2021's GDP growth was 2,2%

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Major IT hubs in Portugal

Four cities can be considered Portugal's main IT hubs: Lisbon, Porto, Aveiro, and Braga.

Major IT hubs in Portugal


Portugal's capital city is a colorful, cosmopolitan place. Loved by tourists and locals alike, Lisbon is imbued with a positive atmosphere where start-ups and established tech players thrive.

Lisbon is home to most developers in Portugal, as the city offers a rich environment for software development teams.

Nokia and Siemens are just two big names with bases in Lisbon.


This coastal city is crisscrossed by quaint, narrow, cobbled streets lined by cafes and historically significant buildings. And in recent years, Porto's local government invested in upgrading the city's IT infrastructure to support the development of a global hub for innovation.  


Located about an hour away from Porto, Aveiro features a very robust IT infrastructure that supports no fewer than 34 companies working in the IT space. Aveiro is also notable for pioneering 5G technology to enable large data transfers for local IT companies.


Apart from hosting one of the best higher learning institutions in the country, the University of Minho, Braga's status as an innovation hub has steadily grown over the past decade. Braga is well known for yielding the most significant number of patents in Portugal. Accenture and Fujitsu have a substantial presence in the city.

Benefits of outsourcing in Portugal

Apart from the very benign weather, Portugal offers many solid reasons for outsourcing, including:

  • Convenient timezone (UTC+0) - Almost identical to many European capitals with significant IT businesses.
  • Strong English skills amongst the workforce - Portugal has the seventh-highest English proficiency among non-native speakers.
  • Very high quality of life - As mentioned above, Lisbon ranked 3th in the Quality of Urban Living Index in 2020
  • Great weather! Portugal is blessed with delightful weather all year round, with an average of more than 300 days of sunshine annually.
  • Vibrant IT communities across all main hubs
  • Cultural similarity - Programmers in Portugal offer Western values and work practices.
  • Competitive rates - The cost of living in Portugal is relatively lower to other European countries, so rates there are quite competitive while maintaining quality output. 
  • Favorable tax legislation -  The Portuguese Government is well aware of the value that IT companies can bring to the country, so good legislation and tax frameworks are in place to support international businesses.

Tech market demographics

Portugal's developer population tends to be more balanced than in other locations. This means very similar numbers of senior, intermediate, and junior developers. Hiring developers in Portugal lead to very positive outcomes.

The graphics below illustrate this balanced market demographics.

Tech market demographics

The Web Summit

Since 2016, the Web Summit has been held in Lisbon. The Summit is one of the key annual events in the IT calendar, with attendees representing many sectors of the global technology spectrum. The next edition of the Summit will be held in November 2023.

This event is one extra attraction to elevate Portugal above the other potential outsourcing destinations.

Hiring developers in Portugal with AllSTARSIT

AllSTARSIT is an international Software R&D, Technical Support, and Talent Acquisition service provider established in 2004. We specialize in software development services for clients across industries as diverse as cybersecurity, healthcare, Fintech, telecommunications, media, and more.

We use our deep expertise in recruitment and talent scouting to find the best software developers and build the best teams of developers in the CEE and LATAM Regions. Our driving principles are growth, integrity, and synergy.

With almost two decades of recruiting expertise behind us, our clients trust us to provide a top-class service when fulfilling their hiring needs. We can offer faster-recruiting timelines and a cost-effective solution to get your project off the ground.

Please find out more about how AllSTARSIT can help you hire Portuguese programmers and create a team of developers in the country by visiting our dedicated page.

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