The Demand for a New School in Portugal: A Growing Market for International Education

There is a growing demand for a new school in Portugal, and investors are looking into it closely!

The demand for a new school in Portugal has steadily risen as the country experiences sustained economic growth, coupled with a broader societal shift towards high-quality, internationally competitive education. Once primarily recognized for its rich history, scenic landscapes, and vibrant culture, Portugal is now emerging as a prominent hub for expatriates, global investors, and families in search of world-class educational opportunities. Portugal’s strategic location within Europe has fueled this shift, as its increasing political and economic stability and its favourable living conditions make it an attractive destination for individuals and families from across the globe.

Portugal’s growing middle class is also significant in this evolving educational landscape. With rising incomes and greater disposable resources, Portuguese families are increasingly seeking out premium education options that offer more than the traditional local curriculum. They are looking for schools that provide internationally recognized qualifications, bilingual or English-medium instruction, and an academic environment that prepares their children for future global opportunities. This has driven demand for international schools and private institutions that can meet these higher expectations.

An additional driving factor behind the rising demand for a new school in Portugal is the rapid influx of foreign residents and expatriates, who often seek schools offering continuity with the international systems they are familiar with. Portugal’s favourable tax policies, attractive real estate market, and high quality of life have drawn significant numbers of expatriates, particularly to urban centres like Lisbon, Porto, and the Algarve region. These families are actively seeking educational institutions that cater to their needs, ensuring their children receive an education that aligns with their home country’s standards and prepares them for global opportunities.

This article delves into the various factors driving the need for a new school in Portugal, examining the shifting educational demands of both local and expatriate populations. It also highlights how international education providers can leverage these trends to successfully establish new schools and seize the opportunities available in this flourishing and dynamic market. With its promising growth trajectory and an increasing emphasis on global education, Portugal stands out as a prime location for international education providers ready to meet the challenges and opportunities that lie ahead.

Economic Growth and a Growing Middle Class

One of the major drivers behind the growing demand for a new school in Portugal is the country’s robust economic growth, which has steadily increased over the last decade. Following a challenging period of economic recovery after the financial crisis, Portugal has implemented several key reforms, attracting foreign investment and revitalizing key sectors such as technology, real estate, and tourism. In 2023, Portugal’s GDP grew by 2.4%, despite broader European economic challenges, highlighting the resilience and forward momentum of the country’s economy. Additionally, foreign direct investment (FDI) reached €9.6 billion in 2022, reflecting increased confidence from global investors.

This economic expansion has significantly strengthened the country’s middle class, resulting in an elevated standard of living for many Portuguese families. With greater financial resources and stability, more families are prioritizing high-quality education for their children, often turning to private and international schools that offer internationally recognized curricula. These families are not just seeking better local education but are increasingly focused on schools that prepare students for global opportunities, providing them with skills and qualifications that are transferable across borders.

The demand for a new school in Portugal is particularly driven by the need for English-language instruction and internationally recognized qualifications, such as the International Baccalaureate (IB), the Cambridge curriculum, or American Advanced Placement (AP) programs. According to the Association of International Schools in Europe (ECIS), there has been a 20% rise in international school enrollment in Portugal over the last five years, largely due to the desire for bilingual education and curricula that open doors to international universities and careers.

A growing number of Portuguese families are choosing to invest in international education, recognizing it as a strategic path for their children’s success in a globalized world. They value educational systems that foster critical thinking, creativity, and problem-solving skills, combined with a globally competitive academic structure. As of 2024, there are over 50 international schools in Portugal, but this number is proving insufficient to meet the rising demand, particularly in rapidly expanding urban centers like Lisbon, Porto, and the Algarve region.

Furthermore, as Portugal becomes an increasingly popular destination for expatriates—due in part to favorable tax policies such as the Non-Habitual Residency (NHR) scheme—the demand for international schools has risen even more. Expat families often seek schools that offer continuity with their home country’s education system, ensuring that their children can easily transition to schools in other countries if needed. This influx of expatriates has boosted the demand for English-medium instruction and international qualifications, further driving the need for new educational institutions that meet these expectations.

In addition, Portugal’s economic and educational policies have created a conducive environment for opening new schools. Government initiatives to modernize the education system have focused on fostering innovation, internationalization, and improved academic outcomes. For example, Portugal has increased funding for education to 4.7% of GDP, and educational reforms are prioritizing STEM education, digital literacy, and bilingual programs in public and private institutions alike.

This intersection of economic growth, an expanding middle class, and increased demand for globally recognized education presents a fertile opportunity for international education providers to open new schools in Portugal. These schools can tap into a market that is ripe for investment, offering world-class education to meet the evolving needs and aspirations of both local and expatriate families. As expectations for education in Portugal continue to rise, particularly with a focus on preparing students for global careers, international schools are in a strong position to provide the high-quality education that is now in high demand.

Portugal’s Expatriate Population and Educational Needs

In recent years, Portugal has emerged as a highly sought-after destination for expatriates, particularly from Europe, the U.S., and Latin America. Factors contributing to this trend include the country’s favorable climate, which boasts mild winters and sunny summers, a relatively affordable cost of living compared to other Western European nations, and a high quality of life characterized by rich cultural experiences, safety, and a welcoming atmosphere. Cities like Lisbon, Porto, and the Algarve region have become focal points for expatriates seeking a better work-life balance and a more relaxed lifestyle.

The growing expatriate community significantly impacts the demand for education, particularly for international schooling options for their children. Families relocating to Portugal often seek continuity in their children’s education, looking for institutions that can provide curricula aligned with what they have previously experienced abroad. This includes schools offering English-medium instruction and internationally recognized qualifications, such as the International Baccalaureate (IB) or the British GCSE and A-Level systems.

As of 2023, data indicates that expatriates constitute nearly 10% of the population in urban areas like Lisbon, where international residents flock for work and lifestyle opportunities. This demographic includes professionals from various sectors, including technology, finance, and education, who are often accompanied by their families. The increasing diversity of the expatriate community creates a pressing need for educational systems that cater not just to the expatriates’ immediate needs but also to the cultural backgrounds and expectations of their children.

The demand for a new school in Portugal is particularly driven by the desire of foreign families to ensure their children receive a seamless educational experience. Many expatriates plan to stay in Portugal temporarily or are open to relocating again, so they seek schools that will facilitate smooth transitions, whether back to their home country or to another international setting. Schools that offer a robust, internationally recognized curriculum can assure parents that their children will be well-prepared for the academic rigors of schools in other countries and, ultimately, for admission to prestigious universities.

Moreover, the influx of expatriates also influences local educational dynamics. As expatriates become more integrated into Portuguese society, their educational needs push local schools to adapt and improve their offerings. This can lead to increased demand for bilingual programs and international curricula that incorporate global perspectives and diverse teaching methodologies. International education providers who recognise and respond to these evolving educational needs will find themselves well-positioned to thrive in this growing market.

Additionally, the increase in international students contributes to a vibrant educational ecosystem that benefits not just expatriate families but also local Portuguese families. Schools that offer international education often attract a diverse student body, enriching the learning environment with various cultural perspectives. This diversity can enhance the educational experience for all students, promoting inclusivity and cross-cultural understanding.

As the expatriate population in Portugal continues to expand, the demand for new schools offering globally recognized curricula is set to rise. Education providers who can deliver high-quality international education tailored to this diverse demographic will have a significant opportunity to capitalize on the growing need for educational options that align with the expectations of expatriate families. As a result, the establishment of new schools in Portugal is not only a business opportunity for international education providers but also a vital service that meets the educational aspirations of a dynamic and growing community.

Government Support and Education Reforms

Portugal’s government has been actively working to improve the country’s education system, with reforms aimed at increasing accessibility and quality across public and private institutions. This supportive environment presents a unique opportunity for private and international schools looking to enter the market. The government’s openness to international investment, combined with initiatives that encourage educational diversity, creates a favorable landscape for establishing a new school in Portugal.

While the public education system in Portugal remains strong, the growing demand for alternative education pathways—especially international and bilingual options—provides international school operators with significant potential for expansion. Moreover, Portugal’s strategic location within the European Union (EU) makes it an attractive destination for families seeking educational consistency, with access to opportunities across Europe.

Key Locations for a New School in Portugal

Portugal’s demand for international schools is predominantly concentrated in urban and affluent regions where the expatriate community thrives. The capital city, Lisbon, stands out as a major hub for expatriates, foreign businesses, and international institutions, creating a fertile environment for educational institutions. Opening a new school in Lisbon not only provides access to a large pool of students from both local and expatriate families but also aligns with the city’s reputation as a center for culture, commerce, and innovation. With a diverse population and a growing number of expatriates, Lisbon represents an ideal location for establishing a high-quality international school that meets the educational needs of families seeking globally recognized curricula.

Porto, Portugal’s second-largest city, offers another promising market for international education. Renowned for its rich history and stunning architecture, Porto has evolved into a center for innovation and industry, attracting professionals from across Europe and beyond. The city’s economic growth, driven by sectors such as technology and creative industries, has contributed to an influx of foreign families who are in search of quality education for their children. As Porto continues to develop and attract a more diverse population, the demand for high-quality, globally recognized education is expected to rise. This trend presents an excellent opportunity for opening a new school in Porto, which can cater to both expatriate and local families seeking a world-class education.

The Algarve region, famous for its stunning beaches, pleasant climate, and high standard of living, is particularly popular among expatriates, retirees, and affluent families. The region’s appeal lies not only in its natural beauty but also in its relaxed lifestyle, making it an attractive destination for those looking to relocate. The influx of foreign residents in the Algarve has significantly contributed to the increasing demand for international schools, as families seek educational options that offer continuity with their home countries. Establishing a new school in the Algarve can strategically cater to the educational needs of both the expatriate community and local populations, helping to enhance the region’s appeal as a desirable place to live and raise a family.

Other notable areas in Portugal that could benefit from new schools include Cascais and Setúbal, both of which are increasingly popular among expatriates and offer a high quality of life. Cascais, located near Lisbon, boasts beautiful coastal views and a vibrant community, attracting many international families. Setúbal, known for its rich cultural heritage and proximity to natural parks, is also experiencing growth in its expatriate population, creating additional opportunities for educational institutions.

The key locations for a new school in Portugal reflect the evolving educational landscape driven by the country’s economic growth and the influx of expatriates. By strategically positioning new schools in Lisbon, Porto, the Algarve, and other affluent regions, international education providers can effectively tap into the growing demand for quality education, meeting the aspirations of both local and expatriate families seeking global educational standards.

Comparisons to Other European Markets

The demand for opening a new school in Portugal can be compared to similar trends in other European countries, such as Spain, Italy, and France, but Portugal offers several distinct advantages. While Spain and France have more mature international school markets with established competition, Portugal’s international education sector is still growing, providing more room for new entrants to make an impact.

Portugal’s smaller population may be seen as a limitation in comparison to its larger neighbors, but this also means that the country offers a more concentrated and less saturated market. Education providers opening a new school in Portugal will benefit from lower initial competition, and they can build a strong reputation quickly by meeting the high demand for quality international education. Additionally, Portugal’s rapidly growing expatriate community ensures a steady demand for international schools, even as competition increases in other European countries.

Special Focus: Portugal vs. Spain

Though both Portugal and Spain share geographic proximity and cultural ties, their education markets exhibit significant differences that can impact the decisions of international education providers. Spain, with a larger population exceeding 47 million and a well-established network of international schools, presents a more competitive landscape for education providers, particularly in urban centres like Madrid and Barcelona. These cities boast a variety of international school options, catering to a diverse expatriate community and offering numerous curriculum choices, including the British, American, and International Baccalaureate systems.

In contrast, Portugal’s education market is smaller but rapidly expanding, offering a unique opportunity for providers seeking to enter a less saturated space. With a population of nearly 11 million, Portugal’s demand for international schools is particularly pronounced in key urban areas, such as Lisbon and Porto. This concentrated demand allows new schools to establish themselves more quickly and effectively, as they can directly target regions where families are actively seeking high-quality education options. By focusing on these high-demand areas, international education providers can carve out a niche in a market that is still evolving.

Another key difference lies in the historical context of education in each country. Spain has a long-standing tradition of bilingual education, with many schools offering instruction in both Spanish and English. This established model has led to a well-developed system that meets the needs of both local and expatriate families. Conversely, Portugal is witnessing a burgeoning interest in English-language instruction and internationally recognized curricula, a trend that has yet to reach its full potential. The increasing number of expatriates and foreign residents seeking high-quality education options is driving this demand, presenting a significant gap in the market for education providers to fill.

Furthermore, the pace of educational reform differs between the two countries. While Spain continues to adapt its educational framework to align with European standards, Portugal has been proactive in modernizing its education system to promote innovation and internationalization. Government initiatives in Portugal have emphasized the importance of high-quality education as a key component of the country’s economic growth strategy. As a result, the educational landscape in Portugal is becoming increasingly receptive to international influences, creating fertile ground for new schools that can meet evolving educational needs.

While Spain’s education market is characterized by its competitiveness and variety, Portugal offers a distinctive opportunity for international education providers looking to establish themselves in a growing but less saturated market. By focusing on regions with high demand, such as Lisbon and Porto, and capitalizing on the increasing interest in English-language instruction and global curricula, providers can position themselves advantageously in this emerging educational landscape. The contrasting dynamics between Portugal and Spain highlight the potential for strategic investment in Portugal, especially as it continues to develop its reputation as an attractive destination for expatriate families seeking quality education for their children.

Seizing the Opportunity to Open a New School in Portugal

Portugal’s growing middle class, expanding expatriate population, and supportive government policies make it an ideal location for international education providers looking to enter the European market. The demand for new schools in Portugal is clear, and the potential for growth in the international education sector is significant.

For investors and education providers seeking to open a new school in Portugal, the time to act is now. By offering high-quality, globally recognized education, international schools can tap into a market that is poised for growth, shaping the future of education in this dynamic European country. The opportunity to meet the needs of both local and expatriate families presents a unique chance to make a meaningful impact while securing a foothold in one of Europe’s most promising education markets.

The landscape is ripe for investment, and the benefits extend beyond financial returns. Opening a new school in Portugal is not just about entering a profitable market; it’s about contributing to the educational landscape and providing children with the tools they need to succeed in an increasingly interconnected world. By focusing on innovative teaching methods and inclusive curricula, international schools can foster a diverse and enriching environment that prepares students to thrive globally.

Now is the time to explore the potential of opening a new school in Portugal. Engage with local communities to understand their needs, partner with educational experts to develop curricula that reflect international standards, and take advantage of government incentives to enhance the educational system. By doing so, you can help create a nurturing environment for students while positioning your institution as a leader in international education.

This is more than just a business opportunity—it’s a chance to contribute to developing a new generation of globally-minded students who will be tomorrow’s future leaders and innovators. Don’t miss out on the chance to make a lasting impact in Portugal’s educational landscape. Seize the opportunity to invest in this vibrant market and help shape the future of education for both local and expatriate families. The time is now to embark on this rewarding journey and help pave the way for Portugal’s next generation of learners.

Contact GSE Today for a Meaningful Consultation

Also: Open a New School in Spain: A Strategic Opportunity for International Education Providers

If you want to learn more about the steps required to set up a school check out some of our other articles:

– Steps to Setting Up a New School

– 10 Steps and Articles on How to Set Up a New School

– GSE International School Franchise Models

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CEO and Education Expert Greg Parry

Internationally renowned for his expertise in education leadership, Greg Parry’s vast experience includes leadership of projects for education institutions throughout Australia, the Middle East, the United States, India, Indonesia, Malaysia and China. Recognised for his numerous contributions in the education arena, Greg has received the Minister’s Award for Excellence in School Leadership based on improvements in school performance and a range of successful principal training and leadership development programs, as well as the School of Excellence Award for Industry/School Partnerships and the School of Excellence Award for Technology Innovation. His company GSE (Global Services in Education) has been recognised as having the Best Global Brand in International Education in 2015 and 2016.

Considered one of the premier experts in his profession, Greg has trained teachers and principals worldwide in critical thinking, language development, and leadership. His expertise in school start-up projects, leadership, and curriculum development has made him a sought-after authority in these disciplines.

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Global Services in Education establishes and operates schools worldwide. Guided by a philosophy of global citizenship, every member of the GSE team shares a passion for inspiring and collaborating to shape international education and student achievement.
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