Portugal Announces €60K Aid Package to Bolster Struggling Restaurant Industry
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The Portuguese government will provide financial assistance to restaurants still grappling with the economic fallout from the pandemic, addressing a growing billing crisis within the sector.
The government, recognizing the vital role restaurants play in the nation’s tourism industry, is moving forward with a three-pronged support plan.Economy Minister Manuel Castro Almeida announced the initiative at a conference celebrating the tenth anniversary of the Conversa Capital program, hosted by Antena 1 and the Buisness Journal. The plan includes investment support reaching up to €60,000, with up to 30% – or €20,000 – potentially non-refundable based on performance.
Addressing Debt and facilitating Investment
A key component of the aid package focuses on debt relief. Companies with outstanding debts to Turismo de Portugal will be granted extended repayment timelines. Critically,the government will assume responsibility for existing bank loans,allowing businesses to repay Turismo de portugal over a longer period. This restructuring aims to alleviate immediate financial pressures and free up capital for investment. the support measures are expected to be formalized in February.
This approach to non-refundable financing mirrors strategies employed during the height of the pandemic, contingent upon businesses maintaining employment levels and continued operation.
Industry Response and Advocacy
The Portuguese Hotel, Restaurant and Similar Association (Ahresp) hailed the announcement as a direct result of sustained advocacy. “These are measures that are in line with the proposals that Ahresp has been defending, aimed at reinforcing the sustainability of companies, alleviating treasury pressures, creating conditions for investment and safeguarding employment,” a statement from the association read.
However, Ahresp also emphasized the need for flexible eligibility criteria, stating they hope the regulations will “be adjusted to the reality of the restoration and capable of reaching the companies that need it most.” The association is now awaiting the official publication of the regulations.
the support arrives amid mounting pressure on the restaurant sector, despite a recent surge in tourism.Businesses are struggling with escalating costs for raw materials and other essential inputs. While closures have occurred, data indicates a net positive trend in the number of restaurant businesses.
According to data from Informa D&B,new restaurant establishments decreased to 3,324 in 2025,an 8% decline from 2024. Simultaneously, closures fell from 1,392 to 1,048, even though this figure is expected to be revised upwards as more data becomes available. Despite the slight cooling in new establishments, the overall balance remains positive, with an estimated net gain of 2,276 companies – excluding sole proprietorships.
Disparities Within the Tourism Sector
The challenges faced by restaurants stand in contrast to the strong performance of the accommodation sector. As one industry representative noted in May of last year, “the positive performance of tourist accommodation contrasts with the difficulties experienced by several restaurant companies, especially in territories where tourist flows are less intense.” These establishments continue to grapple with operational and structural hurdles.
The sector is also advocating for tax relief, specifically a reduction in taxes on income from work and the reinstatement of a standard VAT rate for all beverages. The restaurant industry is a important employer, with 364,000 people working in accommodation and food services as of September of last year.
