Why Portugal Has Become a Hub for Us Lifestyle Entrepreneurs

By Paul Stannard, Chairman and Founder of Portugal Pathways.    

For entrepreneurs, the choice of where to live has traditionally been based on where their company needed them to be – where their core market or funding streams were situated, for example. But, for a new wave of so-called ‘lifestyle’ entrepreneurs, who have built enhanced freedom into their business model, the choices are far less limited.

Essentially, these people have worked backwards: deciding where they want to live, and then building a business capable of supporting that vision. And, with a 300% growth in American residents living in Portugal since 2018, according to the AIMA, it seems the wealth of opportunities and advantages which come with Portuguese life are becoming ever-more appealing.

The rise in lifestyle entrepreneurs

It is fairly impossible to count the exact number of lifestyle entrepreneurs in the world, let alone those who hail from America. But there are multiple indications that there are more than ever: MBO Partners found 8% of the US workforce now identify as ‘digital nomads’; the US Census Bureau reports businesses with no paid employees are growing in number faster than any other sort of company; and Stripe data shows the number of solo founders generating more than $1 million doubled between 2023 and 2025, while the amount reaching $10 million tripled.

None of these figures give us an insight into lifestyle entrepreneurs specifically, but they are all indicative that fewer individuals are remaining tied to the notion of building physical presence and staff numbers in order to create a successful company.

Why does Portugal appeal?

Lifestyle entrepreneurialism is not about working remotely. It focuses on deliberately building a business where the founder defines where, when and how they work. Maximising revenue is a measure of success, but it sits alongside time, autonomy, health and family in their priority list.

Escaping the trade-off of having to work more to earn more means being based somewhere which affords you the opportunity to do exactly that. And this is where Portugal offers a long list of benefits: compact cities which potentially shorten commutes; a year-round outdoor lifestyle; a prominent coworking culture; a strong international community; and relatively easy access to the rest of Europe. By contrast, America’s entrepreneurial culture focuses heavily around ‘hustle’, with scaling, mergers, acquisitions and investment all key measures of success. It is perhaps unsurprising then, that Ipsos found 60% of Americans were striving for a better work life balance.

Another key consideration is the cost of living. Whilst affordable rent, groceries and other bills might be attractive – the real benefit is around unlocking freedom. If an entrepreneur can earn the same amount of money while living in Portugal, but they can spend considerably less on life’s essentials, then there is far more disposal income left for them to spend on luxuries. Alternatively, they can choose to work fewer hours in return for the same amount of disposal income. Whatever freedom means to them, whether it is about being financially better off or time-rich, the options are open.

It is also worth bearing in mind the time zone that Portugal sits in – with overlapping ‘working hours’ with the US East Coast from the early afternoon and the West Coast later in the day. With this leaving mornings available for meetings with those in similar time zones, lifestyle entrepreneurs do not need to choose between American and European clients. Truly the best of both worlds.

An entrepreneurial network

Lifestyle entrepreneurs may have shunned the ideal of a traditional office-based 9 to 5 job, but there is still a very real need for a network around them. Particularly having made the move across the world, having a support system in place is essential to help embed them into their new life.

And this is yet another area where Portugal has hit on a magic formula which gives access to a wealth of options, making it the ideal location for someone operating outside of the established ‘norm’.

In Lisbon, there is an impressive start-up eco-system, with almost 200 new firms founded every year according to Dealroom – including one valued above $10billion and multiple unicorns. The City Council backed Unicorn Factory Lisboa has supported more than 1,100 start-ups, with an incubation programme involving 190 mentors, 150 venture capitalists and investors, and more than 100 eco-system partners.

For those in the technology sector, Portugal has hosted the annual Web Summit for the past decade. It is not just another tech event, but one of the largest in the world, attracting 71,300 people from 157 countries, including investors and Government delegates.

And it is not just Lisbon which showcases why Portugal has become an inviting proposition for lifestyle entrepreneurs: Ponta do Sol trialled a Digital Nomads Madeira Islands project, designed to create an organised destination for remote workers. Through co-working facilities, events and opportunities for visiting professionals to connect, a community was created. It was so successful, that this model has since been expanded to other regions across Madeira.

A world of opportunity

For this new wave of entrepreneurs looking to define their success by quality of life as much as by revenue and profits, Portugal is able to offer an enticing blend of personal and professional advantages.

While the climate, culture and cuisine might draw in a tourist or digital nomad, for someone looking to build or scale a successful business, there has to be much more than just beaches and bars. A viable infrastructure which they can easily become a part of, which offers opportunity, connection and an understanding of their work/life approach is equally as vital, if not more.

Because this isn’t about taking a break from the corporate rat-race in America, it’s about finding a place to do business in the way they want to – enabling them to prioritise their health, interests and family, and place as much value on time as on money.