The fourth edition of the “Context Cost Survey (IaCC)” conducted by the National Statistics Institute (INE), concluded between May and July 2025 with inputs from 4,843 responses from non-financial companies in Portugal, indicates that the overall context cost indicator for businesses reached 3.14 in 2024. This is on a continuous scale from one to five, marking an increase from 3.09 in 2021, 3.05 in 2017, and 3.04 in 2014.
By sector, the “industry” showed the highest score in this indicator (3.27), while the “transport and storage, information and communication” sector experienced the largest increase since 2021 (+0.20).
The indicator was also higher among small and medium-sized enterprises, as well as those headquartered in the Autonomous Region of the Azores, reaching 3.22 and 3.24 respectively (+0.07 and +0.16 compared to 2021).
In 2024, out of nine domains identified as potential obstacles to non-financial companies’ operations (start-up, licensing, network industries, financing, judicial system, tax system, administrative burden, barriers to internationalization, and human resources), the judicial system again recorded the highest indicator (3.66), with 53.7% of companies considering the duration of legal proceedings a high or very high obstacle.
“Among its components, tax disputes remained the most significant obstacle (3.78), followed by commercial disputes (3.62) and labor disputes (3.58),” noted INE.
Regarding the characteristics of the processes, the duration of judicial proceedings remained the most significant barrier (3.85), considered a high or very high obstacle by 53.7% of companies.
In the tax system, the tax burden continued to be the aspect most cited by companies as a hindrance, especially in the “accommodation and restaurant” sector, while in licensing, obtaining licenses and environmental certifications was identified as the main obstacle by companies in the “industry” sector.
According to INE, the human resources domain, however, registered the largest increase in the indicator compared to 2021, reaching 3.24 (+0.14), an increase “associated with difficulties in hiring workers, accessing qualified technicians, and accrediting skills,” with these indicators rising by 0.18, 0.15, and 0.15 respectively.
These factors were perceived as high or very high obstacles by 46.8%, 50.6%, and 32.2% of companies, respectively.
Meanwhile, network industries showed an improvement in the context cost indicator compared to 2021 (-0.04), reflecting positive developments in most services included in this domain, especially liquid fuels (-0.17).
Electricity and land freight transport services were the only ones to present indicator values equal to or greater than three, at 3.12 and 3.00, respectively.
INE data further indicate that the provision and delivery of business and tax information was the obligation with the greatest weight in the average annual cost associated with meeting information requirements, with 61.2% of this cost directly borne by companies and the rest through third-party outsourcing.
This was followed by costs for audits, inspections, and inspections, and those associated with labeling and providing information to consumers and other entities, which accounted for 21.5% and 11.0% of the total, corresponding to increases of 1.9 percentage points and 3.5 percentage points, respectively, compared to 2021.
