Political relations between Germany and Portugal are characterised by a spirit of trust, numerous mutual visits and broad agreement on issues relating to European as well as foreign and security policy. Germany helped to build democratic structures in Portugal after the 1974 Carnation Revolution (overthrow of the Salazar/Caetano regime) and supported Portugal’s accession to the European Community, now the EU, in 1986.

Under the Portuguese Presidency of the European Council, the Treaty of Lisbon Amending the Treaty on European Union and the Treaty Establishing the European Community was signed in Lisbon in 2007; it had been prepared under Germany’s Council Presidency, among others. With a view to developing common positions and projects, a German-Portuguese Action Plan was agreed in 2019 under the leadership of both Foreign Ministries. The German-Portuguese Forum has held annual, alternate meetings in Berlin and Lisbon since 2013, most recently meeting in Lisbon in 2023.

Germany is Portugal’s second most important trading partner, after Spain, with both countries’ top exports being machinery and equipment. More than 700 German businesses are operating in Portugal. For decades, major German companies and medium-sized enterprises have had their own production facilities in Portugal. In keeping with the international trend, they are placing ever more emphasis on the development of digital products and services in Portugal, to boost their business on a global level.

In the sphere of culture and education, the Goethe-Institut has offices and operates in Lisbon and Porto. The country currently has seven schools in the Schools: Partners for the Future programme (PASCH), a worldwide network funded by the Federal Foreign Office, including two German schools abroad. The German Academic Exchange Service (DAAD) and the German Archaeological Institute (DAI) are also represented in the country. Fraunhofer Portugal was established as a joint bilateral research institution in 2007 and has offices in Lisbon and Porto.