Monday, 06 Feb 2012
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Doing business in Portugal
06 February 2009
Legal fees in Portugal are reasonable, with law firms charging fees that are generally 20 per cent lower than neighbouring Spain. In a number of exceptional situations, the Portuguese Bar Association may set out fixed rates for certain procedures, namely in standard intellectual property matters. Lawyers generally bill on an hourly basis according to international standards. Contingency fees are not permitted. Average hourly rates range between €80-€250 for an associate, and €200-€400 for a partner.
Portugal's fortunes have depended heavily on EU funding since it became a member in 1986. Even though Portugal joined the European single currency in 1999, it has struggled with its balance-of-payments deficit for a number of years. In 2001 it became the first European country to have action taken against it by European finance ministers for running an excessive deficit. However Portugal's economic openness, strong ties with the EU and geographical and strategic location make it a natural gateway between the EU and a number of international markets.
In the last few years the Portuguese corporate and M&A market was dominated by two attempted hostile takeovers: in February, Sonaecom made public its EUR13.9 billion bid for its larger competitor, Portugal Telecom; then, within a few weeks, Millennium BCP announced its EUR4.3 billion bid for Banco BPI. The impact of these two operations on the legal market was enormous.
The Sonaecom deal was gigantic by Portuguese standards - the country had simply not witnessed an operation of this size and complexity before - and engaged most of the country’s leading law firms. The telecoms market has sustained a high level of activity during 2007.
The energy sector has also been busy during the past year, with key players Energias de Portugal (EDP), Galp Energia, REN and the Portuguese government providing firms with a flow of work. As part of the ongoing privatisation of the sector, Galp entered the stock exchange in October with the completion of its IPO, following negotiations with ENI, REN, Amorim and the government. Earlier in the year, MLGTS advised loyal client and market heavyweight EDP on the sale to Américo Amorim Group of its EUR720 million shareholding in Galp. Elsewhere, the government continued to pour resources into renewable energy projects such as the world’s largest photovoltaic power plant in Moura.
Portugal's fortunes have depended heavily on EU funding since it became a member in 1986. Even though Portugal joined the European single currency in 1999, it has struggled with its balance-of-payments deficit for a number of years. In 2001 it became the first European country to have action taken against it by European finance ministers for running an excessive deficit. However Portugal's economic openness, strong ties with the EU and geographical and strategic location make it a natural gateway between the EU and a number of international markets.
In the last few years the Portuguese corporate and M&A market was dominated by two attempted hostile takeovers: in February, Sonaecom made public its EUR13.9 billion bid for its larger competitor, Portugal Telecom; then, within a few weeks, Millennium BCP announced its EUR4.3 billion bid for Banco BPI. The impact of these two operations on the legal market was enormous.
The Sonaecom deal was gigantic by Portuguese standards - the country had simply not witnessed an operation of this size and complexity before - and engaged most of the country’s leading law firms. The telecoms market has sustained a high level of activity during 2007.
The energy sector has also been busy during the past year, with key players Energias de Portugal (EDP), Galp Energia, REN and the Portuguese government providing firms with a flow of work. As part of the ongoing privatisation of the sector, Galp entered the stock exchange in October with the completion of its IPO, following negotiations with ENI, REN, Amorim and the government. Earlier in the year, MLGTS advised loyal client and market heavyweight EDP on the sale to Américo Amorim Group of its EUR720 million shareholding in Galp. Elsewhere, the government continued to pour resources into renewable energy projects such as the world’s largest photovoltaic power plant in Moura.
