The Impact of Regulation on International Investment in Portugal examines how regulatory reforms could help Portugal build a more enabling and competitive environment for investment, in particular foreign direct investment (FDI). The report analyses trends and patterns of FDI activity in Portugal, including its broader economic, social and environmental benefits to Portugal. It gives an overview of the economy-wide and sector-specific regulatory settings in Portugal compared to selected European peer economies and provides an empirical analysis of the potential effects of domestic regulatory reforms on FDI. Foreign investors’ perceptions on Portugal’s business environment complement these findings. The report indicates potential areas for regulatory reforms and proposes policy measures to further improve Portugal’s investment climate and support efforts to attract and retain more FDI while strengthening its contribution to sustainable development in Portugal.