Starting a Cannabis Business in Portugal

Portugal has positioned itself as a leading European hub for cannabis cultivation for export, leveraging its favorable climate, competitive labor costs, and progressive regulatory framework. Law 33/2018 established one of Europe's first comprehensive medical cannabis cultivation and export licensing systems, administered by INFARMED. Several international companies have secured licenses and invested tens of millions of euros in large-scale greenhouse and indoor facilities, primarily targeting export markets in Germany, the UK, and other European countries. Portugal's advantages include abundant sunshine (over 2,800 hours annually), significantly lower operational costs compared to Northern Europe, and a regulatory body experienced in processing cannabis applications. The country's 2001 decriminalization of personal drug use has created a socially accepting environment. However, the domestic medical cannabis market remains small, and most licensed operations are heavily export-dependent. The licensing process is thorough and capital-intensive, making Portugal best suited for well-funded operations targeting the European medical cannabis supply chain.