Portugal: The right place to invest Executive Director V Annual Health Cluster Portugal Conference NOVAÊs Rectorate Campolide Campus November 26, 2014
Agenda. 1. Portugal - The choice for investment. I Overview. II Increasing Competitiveness. III A Favourable Country. IV Opportunities. 2. The Health Cluster. I Overview. II Quality of the health value chain. III Incentives. 3. Final Remarks..1.
1. Portugal The choice for investment Overview. A Reliable Partner for Investment Economic environment The "new Portuguese economy Improving economic conditions Sounder public finances and financial stability 1 Portugal Better financing conditions The choice for investment Positive impact from structural reforms Confidence and credibility A favourable country 1 Fiscal discipline will remain monitored by the creditors of the Economic and Financial Assistance Programme, Fiscal Compact, market pressures, etc. Sources: Portuguese Government, author s analysis..2.
1. Portugal The choice for investment Competitiveness. Structural Reforms Ø Ø Portugal has been improving its compe veness. According to the recently released World Economic Forum s compe veness ranking, a respected and renowned compe veness indicator, closely followed by investors worldwide, Portugal rose 15 posi ons, being now the 36th most compe ve country in the World. Global Compe veness Report by the World Economic Forum (WEF), Portugal, 2004-2014* 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 25 31 34 40 43 43 46 45 49 51 36 * In 2014, the report covered 144 countries. Among the EU countries, Portugal ranked 14th. Sources: World Economic Forum..3.
1. Portugal The choice for investment A favourable country. Distinctive Assets A favourable country Strategic location and Portuguese language Qualified workforce (and World class education) Competitive costs High-quality infrastructure Prominent sectors with potential for development CIT reform, tax incentives & grants Business friendly environment Portugal is the European nearest country to the US Same time as UK and Ireland Daily flights to major European cities Great and privileged economic relations between Portugal, Brazil, Angola and Mozambique Multi language skills Three Portuguese Business Schools among Europe's best (according to FT ranking) Portugal is among the least expensive locations in terms of real estate Ports supported by appropriate logistic infrastructures Deep-sea water port of SINES (Post-Panamax Vessels) 4 international rail lines exiting Portugal TOP3 European countries with the biggest motorway length per capita Highly developed ICT infrastructure (competitive costs, broadband penetration, coverage and speed lines) Portugal ranks 25st in 2015Ês Doing Business ranking, among 189 countries - ahead of major players like France, Spain and Italy 1. Major public services are on-line Average time to set up a firm is less than 1-hour Portugal is very attractive for expatriates 1 For example and just to name a few, in Portugal, star ng a new business takes 2.5 days and 3 procedures and to register a property is just 1 day and 1 process. Source: Portuguese Government..4.
1. Portugal The choice for investment A favourable country. Ø Main changes in the Corporate Income Tax: ü Crea on of a simplified regime for companies with revenues up to EUR 200 000 and total assets less than EUR 500 000 (70% of the Portuguese companies) ; ü Loss carry- forward period to be extended from 5 to 12 years, thus favoring investment and reinforcing economic compe veness; ü Implementa on of an amor za on scheme for goodwill, allowing a be er environment for M&A and economic ac vity; ü Progressive reduc on of CIT rate. Progressive reduc on of CIT rate *, 2013-2018 (Percentage) 25 23 21 17-19 17-19 17-19 Top adjusted CIT rate interna onal comparison, 2013 (Percentage) France Malta Belgium Portugal Spain Germany Luxembourg Italy Greece Denmark Netherlands Austria Finland Slovakia United Kingdom Sweden Estonia Hungary Croatia Portugal (goal for 2018) Czech Republic Poland Slovenia Romania Latvia Lithuania Irelanda Bulgary Cyprus CIT reform 36.1 35.0 34.0 31.5 30.0 29.8 29.2 27.5 26.0 25.0 25.0 25.0 24.5 23.0 23.0 22.0 21.0 20.6 20.0 19.0 19.0 19.0 18.0 17.0 17.0 16.0 15.0 15.0 12.5 10.0 10.0 2013 2014 2015 2016 2017 2018 European Union (28) Euro Zone (18) 22.9 25.1 * Does not include other municipal and statutory charges, which are only applied to companies above EUR 1.5 million of profit, and that are expected to be progressively eliminated un l 2018. Sources: Portuguese Government, Reform commission for CIT, European Commission; author s calcula ons..5.
1. Portugal The choice for investment A favourable country. Incentives and grants Incen ves to companies and individuals Financial grants Incen ves to companies Tax grants Training grants Job creation Incen ves to individuals Expats Incentives Golden Visa Source: Portuguese Government..6.
2. The Health Cluster Overview. An eco-system The Health Cluster in Portugal: an eco- system Retail Manufacturing Services IT CORE ACTIVITIES Pharma & Biotech Medical Devices Healthcare R&D Centers Universities /Education Technological parks Shared Services Regulatory Bodies Infarmed, Ministry of Health Source: Health Cluster Portugal..7.
2. The Health Cluster Overview. Growing figures Selected figures on the Health Cluster in Portugal 1 More informa on available at h p://healthportugal.com/portugal- 1/health- sector/health- sector. 2 More informa on available at h p://healthportugal.com/portugal- 1/science/science. 3 More informa on available at h p://healthportugal.com/portugal- 1/higher_educa on/educa on. Does not include exports of e- health solu ons and health- related services. * Provisional values. Source: Health Cluster Portugal..8.
2. The Health Cluster Quality of the health value chain. High-quality education system Main Portuguese Universities with undergraduate programs and R&D Institutions in Sciences & Health PORTO COIMBRA CATHOLIC TR S-OS-MONTES/ ALTO DOURO AVEIRO BEIRA INTERIOR INSTITUTO SUPERIOR TÉCNICO LISBON NOVA ÉVORA ALGARVE.9.
2. The Health Cluster Quality of the health value chain. High-quality human resources Health Cluster in Portugal - Human Resources R&D - Human Ressources PhDs in Portugal, by year (2001=100) 10 250 247 ˆ active population 8 6 4 PhDs in Portugal 2001=100 200 150 212 2 2001 2003 2005 2007 2008 2009 2010 2011p 100 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Total RH Researchers 50 Health TOTAL Source: Sta s cal survey to the Na onal Register of Themes PhD Thesis in Progress and Completed PhD Higher Educa on, GPEARI / MEC, DGEEC, 2011..10.
2. The Health Cluster Quality of the health value chain. World class R&D centres Research centres Technological Parks www.inl.int/ www.ipatimup.pt www.ibmc.up.pt/ www.ineb.up.pt/ www.biocant.pt/ www.itqb.unl.pt/ wwwpt.igc.gulbenkian.pt/ www.fchampalimaud.org.11.
2. The Health Cluster Incentives. Competitive incentives Support to Job crea on and R&D Projects Job creation (Around 30%) R & D Projects (More than 40%%) Incentives 0 100 Investment.12.
3. Final Remarks. A Reliable Partner for Investment Ø Portugal is the right place to invest and build partnerships in Health! AICEP, a reliable partner for investment A AICEP is totally focused on a rac ng more and be er investment (i.e., produc ve, innova ve and that promotes exports) One-Stop-Shop Focus on client or investor 1 Flexibility Tailored incentives package Source: Portuguese Government..13.
3. Final Remarks. A Reliable Partner for Investment Recent investment track record Recent trade promo on missions UAE October 2013 Colombia and Peru October 2014 Saudi Arabia May 2014 UAE November 2014.14.
Portugal: The right place to invest Executive Director V Annual Health Cluster Portugal Conference NOVAÊs Rectorate Campolide Campus November 26, 2014