Thinking about working in Portugal or planning a move soon? In the last several years, Portugal became one of Europe’s most attractive destinations for expats, digital nomads, and remote workers. The lifestyle is relaxed, the food is unforgettable, and the people are known for their kindness. What surprises many newcomers most are the country’s labor laws, which offer a strong level of protection and stability for workers. If you are job hunting, planning to relocate, or simply curious about what working life is like in Portugal, here are 12 things you probably did not know about the Portuguese workplace.

1. Portugal Has Strong Employee Protections and an Growing Minimum Wage.

Portugal has steadily raised its national minimum wage as part of a long term strategy to improve worker protections and overall quality of life. For full time employees, the minimum wage was 760 euros per month in 2023, then increased again to 820 euros per month in 2024. It further increased to 870 euros per month in 2025. While wages remain lower than in northern Europe, these yearly increases show a clear effort to continue to improve earning power in Portugal. Expats should expect lower salaries compared to the United States or northern Europe, but the tradeoff often includes a lower cost of living and stronger labor protections.

2. The Standard Portuguese Workweek Is 40 Hours, but Many Companies Offer Less.

The legal maximum workweek is 40 hours with a daily limit of eight hours. However, many businesses, especially in tech, creative fields, public services, and international companies, opt for 35 to 38 hour workweeks. Portugal has also tested versions of the four-day workweek, which shows promising results that may influence future policy. This overall trend toward shorter work hours should appeal to many expats seeking a healthier work life balance.

3. You Get at Least 22 Paid Vacation Days Per Year.

All employees receive a minimum of 22 working days of paid annual leave, and it is common for companies to add extra days. Additional leave may be granted for seniority, birthdays, or company anniversaries. Some workers can even earn extra vacation days through excellent attendance, which is known locally as assiduidade. For expats coming from countries with limited vacation time, Portugal’s approach may be a welcome change.

4. Portugal Passed a Landmark Remote Work Law in 2021.

In November 2021, Portugal became one of the first countries in Europe to update its labor laws specifically for remote work. These laws were created after the pandemic brought new challenges to the workplace. Under the new rules, employers with ten or more employees can face penalties for contacting workers outside normal working hours. Companies must help cover remote work expenses such as electricity and internet, and these contributions can be counted as business expenses. Employers are also prohibited from monitoring remote workers in their homes. Parents with children under eight gained the right to work from home without needing prior approval. To reduce isolation, employers must organize regular face to face meetings at least every two months. These changes were described as a major shift in work culture and became part of Portugal’s strategy to attract remote workers and digital nomads.

5. Overtime Pay Is Strictly Regulated and More Generous Than People Expect.

Overtime in Portugal follows strict rules to protect workers. Employees must be paid at higher rates for overtime hours with additional increases for work on weekends and holidays. There is also a yearly limit on how much overtime a company can request except in essential services. These protections help prevent burnout and excessive working hours.

6. The 13th and 14th Month Salary Is Common in Portugal.

In Portugal, many workers receive what is known as the 13th and 14th month salary, which means that instead of dividing your annual pay into twelve equal monthly payments, your employer may divide it into fourteen. These extra payments are called the holiday allowance and the Christmas allowance. At least one of them is required by law, but many industries provide both. The holiday allowance is usually paid in the summer before workers take their vacations, and the Christmas allowance is typically paid in December. This system is deeply embedded in Portuguese work culture and often surprises expats who are used to a standard twelve-month pay structure.

To understand how this works in practice, imagine you earn 1,000 euros per month. In a country with a traditional twelve-month system, you would earn a total of 12,000 euros in a year. In Portugal, you would still earn the same annual amount in terms of base salary, but you would receive two extra instalments: one in the summer and one at Christmas. This means you would receive your regular 1,000 euros each month, plus an additional 1,000 euros during holiday season and another 1,000 euros in December. By the end of the year, your total earnings would be 14,000 euros, simply distributed in a different way.

For expats, this structure can feel like receiving two substantial bonuses each year, even though it is really part of your normal compensation. It offers a welcome financial cushion during the times of year when people tend to spend more especially during summer holidays and the end of year holidays.

7. Parental Leave Benefits Are Strong Compared to Many Countries.

Portugal offers generous parental leave that can be split between parents. Mothers must take a short mandatory period after childbirth, and fathers receive dedicated paternity leave that employers must honor. Parents can also choose extended leave at different pay levels depending on how long they stay home. These policies create a more supportive environment for families and appeal to expats moving with young children.

8. You Cannot Be Fired Without a Clear Legal Process.

Terminating an employee in Portugal requires a specific and detailed process. Employers must provide a legally acceptable reason, follow documented steps, and allow the employee an opportunity to respond. If the dismissal is ruled unlawful, the employee can be reinstated or compensated. Job security is significantly stronger than in many other countries.

9. Meal Allowances Are a Standard Benefit.

Most workers receive a daily meal allowance called subsídio de alimentação. It can be paid through a card, voucher, or cash. This allowance receives favorable tax treatment, which makes it a standard benefit across many companies. The amount often increases slightly each year and helps offset daily meal costs.

10. Portugal Has 13 National Holidays plus Local Ones.

Portugal has one of the highest numbers of public holidays in the European Union. There are 13 national holidays, and each municipality may add its own regional holiday. Many workers enjoy days off for city celebrations or local patron saint festivals. Holiday pay for employees who work on these dates is usually higher.

11. Probation Periods in Portugal Are Longer Than Many Expats Expect.

Portugal has clearly defined probation periods, and they can be longer than what many expats are used to in other countries. The length of the probation period depends on the type of employment contract and the nature of the position. For permanent contracts, most workers have a probation period of 90 days, but roles that require greater technical responsibility can have a probation period of 180 days, and management or senior leadership positions may have a probation period of 240 days. During this initial phase, both the employer and the employee have more flexibility to end the contract without the extended procedures required after the probation period ends. This structure can help companies ensure a good long term fit while still offering employees a clear timeline for when full job protections begin.

12. Sick Leave Is Paid Through Social Security.

If you fall ill, you are entitled to paid sick leave through Portugal’s Social Security system. The amount you receive increases the longer your medical leave lasts. Employees must provide valid medical documentation, and many companies offer supplemental support to minimize income loss. This system provides relief during stressful moments particularly for expats unfamiliar with European social protections.

How Does Portugal Compare to Spain, France, and Italy?

Closing Thoughts

Working in Portugal offers a balance of stability, flexibility, and quality of life that appeals to expats from all over the world. The country’s labor laws prioritize worker well being, protect personal time, and support families and remote professionals in meaningful ways. While salaries may be lower than in northern Europe or the United States, the benefits often extend far beyond a paycheck. From long vacation allowances to strong job security and a growing remote work culture, Portugal provides an environment where people can build both a career and a calmer, more fulfilling lifestyle. For anyone considering a move, understanding these laws is the first step toward embracing the rhythms of working life in Portugal.

Portugal is a country with a wealth of superstitions that weave themselves into daily life. Over the centuries, they have shaped habits, conversations, and family traditions. Some of these superstitions are still taken quite seriously while others are considered quite humorous. Many continue to show up in homes, holiday rituals, and everyday routines throughout the country. Here are 19 superstitions that you can still find in Portugal. We will give you the context, cultural background, and examples of where you may encounter each of them today.

1. Do not put your purse or wallet on the floor.

In Portugal, placing your purse, handbag, or wallet on the floor is considered a direct invitation for money to leave your life. It is believed that, when your bag touches the ground, it symbolically allows your financial luck to fall away. This superstition makes a frequent appearance in Portuguese households, restaurants, and cafes, where people almost instinctively place their bags on chairs, tables, or hooks. Many older Portuguese will even stop someone from setting a bag down and remind them that it can cause loss. Even if younger generations do not always take it literally, they tend to follow the rule out of respect for tradition or habit.

2. Never place bread upside down.

Bread in Portugal is connected to deep cultural respect because it has long been seen as a symbol of nourishment and even spiritual blessing. Turning a loaf upside down is thought to be disrespectful and to bring misfortune into the home. This belief is rooted in a time when bread was precious, and wasting it or treating it carelessly was nearly unthinkable. Today, if someone places bread upside down on a table, many Portuguese will instinctively flip it back upright without thinking twice. It is a simple action that carries a quiet sense of respect for food and tradition.

3. If your ear is burning, someone is speaking about you.

The idea that a burning or tingling ear means someone is talking about you is widespread in Portugal and comes up often in casual conversation. People will lightly touch their ear and jokingly say that someone must be discussing them. The belief also includes a split between good and bad talk: if the right ear burns, someone is speaking kindly, while the left side refers to criticism or gossip. It is not unusual to hear this in offices, family gatherings, or cafes when someone suddenly feels their ear getting hot. The superstition continues because it is playful and often sparks conversation.

4. Walking backward invites bad luck.

Walking backward is believed to lead toward misfortune because it symbolically “shows the devil the way.” This superstition is especially well known among older generations who grew up hearing warnings about stepping backward through a doorway or backing up intentionally. The belief may come from older fears about spirits or bad energy being able to follow someone who is not facing forward. Even if many Portuguese do not treat this superstition literally, they often mention it humorously when they see someone walking backward. 

5. Do not cross knives.

Crossed knives on a table are a visual sign of conflict in Portuguese tradition. If two knives form an X shape, it suggests an argument or some tension is on the horizon. Many older Portuguese will immediately uncross knives when they see them arranged that way. The superstition is especially common during family meals, holidays, or gatherings where getting along is important. Some believe that crossed knives symbolically cut good energy or provoke disagreements. Even if younger people do not fully believe in this idea, many still avoid leaving knives crossed out of respect for older relatives who take it more seriously.

6. Never gather thirteen people at a table.

Just like many other cultures, the number thirteen carries a strong association with bad luck in Portuguese culture. If exactly thirteen people sit down to eat together, tradition says misfortune may strike the youngest person at the table. This belief leads some families to quickly add an extra place setting or split the group into two tables. The superstition has existed for generations and may originate from old religious symbolism connected with the Last Supper. Even though not everyone believes it literally today, many Portuguese prefer to avoid the situation entirely. The number thirteen still creates discomfort in homes and restaurants during large holiday meals.

7. Spilling salt requires a quick fix.

Salt has historically been a valuable symbol in Portugal, as it is connected with purity, preservation, and protection. Because of its significance, spilling salt is viewed as a sign of approaching bad luck. The accepted solution is to take a small pinch of the spilled salt and toss it over your left shoulder to neutralize the misfortune. This gesture is still widely practiced and can be seen in kitchens across the country. Many people will automatically perform the motion without thinking. Even if the superstition is something many Portuguese may take with a grain of salt today, most Portuguese know the tradition and will mention it whenever salt hits the table by accident.

8. Wear blue underwear on New Year’s Eve.

Portuguese New Year traditions include several rituals believed to encourage good luck, and wearing new blue underwear is one of the most famous! Blue symbolizes health, harmony, and protection. Shops in Portugal often sell special blue underwear sets during December for this exact purpose. Families frequently talk about it before New Year celebrations. Some also combine it with other good luck rituals like eating twelve raisins or stepping into the new year with the right foot. Together, these customs create a hopeful and festive start to the year.

9. Step up with your right foot at the moment of a New Year.

At the moment the new year begins, many Portuguese people step onto a chair, climb onto a stair, or simply lift their right foot to ensure a lucky year ahead. The idea is that beginning the year with the right side brings favorable energy, success, and a positive mindset. This superstition is often practiced with laughter during New Year parties, but it remains deeply rooted in tradition. Families often remind each other in the last moments of the countdown to get their right foot ready. 

10. A broom sweeping over your feet means you will never marry.

The superstition that getting your feet swept by a broom prevents marriage is one of Portugal’s most humorous and well known beliefs. It often comes up during household cleaning or family gatherings. If someone accidentally brushes a broom across your feet, the joking response is that you will remain single unless you can reverse the bad luck. One solution is to spit lightly on the broom while another is to step over it. Children often hear this superstition from older relatives, and even if they do not believe it literally, it adds an entertaining aspect to their chores.

11. Blue trim on houses protects the home.

Blue is back again! In many coastal towns, and especially in the Algarve, you will notice white houses with bright blue trim around windows and doors. While the color choice has practical and aesthetic origins, it is also tied to the belief that blue keeps evil spirits away from the home. The color is thought to symbolize purity, protection, and the power of the sea. Families that choose blue paint may do so partly because of this tradition even if they mention it with a smile. The association between blue and safety has become a lasting part of Portuguese architectural identity.

12. Finding a spider in the home is good luck.

Unlike in many countries where spiders are considered unpleasant or frightening, in Portugal, a spider inside the home is seen as a positive sign. It suggests that prosperity and good fortune are coming. Some believe that spiders represent industry and patience, which may bring blessings. As a result, many older Portuguese will not kill a spider indoors. Instead, they might gently move it or simply let it stay. The superstition is especially common in rural areas, but the idea is known throughout the country. Even if people do not fully believe it, they often repeat the saying when a spider appears.

13. Never open an umbrella indoors.

Here is a superstition that may sound familiar to you. Opening an umbrella inside a house or building is believed to attract bad luck. Many Portuguese avoid doing so even in situations where it might be convenient, such as preparing for a rainy day near the door. The superstition may be connected to older fears about objects associated with storms or unpredictable weather. Today, it continues as a polite and cautious habit. Parents often tell children to wait until they are outside before opening an umbrella, and many adults still follow the rule automatically. The belief remains one of the more widely recognized superstitions in the country.

14. Never toast with water.

Toasting with water in Portugal is considered extremely unlucky and is often avoided during meals, celebrations, and holidays. Raising a glass in a toast is meant to honor the moment, celebrate friendship, or share goodwill. Using water is believed to break the symbolic meaning of the gesture and invite bad luck instead. Many Portuguese will decline to toast with water if offered and may request a different drink. Even at casual dinners, this tradition is respected, and it often leads to conversations about its origins. 

15. The Rooster of Barcelos brings protection and good luck.

The Rooster of Barcelos is perhaps Portugal’s most iconic symbol of good fortune. The legend tells of a wrongfully accused pilgrim who was saved when a roasted rooster miraculously crowed to prove his innocence. Because of this story, the rooster is believed to bring protection, justice, and positive energy. You will find it in homes, kitchens, restaurants, and souvenir shops throughout the country. Many Portuguese families keep at least one rooster figure as a charm for luck. Even though it is now a popular decorative item, the superstition behind it remains part of its cultural meaning.

16. Do not whistle at night.

Whistling at night in Portugal is believed to attract unwanted spirits or bring misfortune. This superstition is especially strong in rural towns where nighttime has long been associated with wandering souls or unsettled energies. Older generations still warn children not to whistle after dark. Even if younger people do not take the idea seriously, they often avoid loud nighttime whistling out of respect for tradition or simply to avoid alarming older neighbors. 

17. Dropping cutlery signals the arrival of visitors.

When a piece of cutlery falls to the floor, it is believed to signal the arrival of an unexpected visitor. A fallen spoon usually means a woman will arrive soon, while a fallen fork suggests a man will come. Families often comment on this superstition when something slips out of a hand or falls during a meal. It is treated with humor but also with an air of old truth. The belief likely stems from times when visitors frequently dropped by unannounced. 

18. Never place hats on a bed.

Placing a hat on a bed in Portugal is considered bad luck and is especially associated with illness or even death. This belief may originate from older religious practices where priests set their hats on beds during final blessings for the sick. Because of this connection, many Portuguese avoid placing hats anywhere near a bed. Even in modern households, the rule is usually respected. If someone accidentally leaves a hat on a bed, an older relative may quickly remove it and warn them of the superstition. 

19. Do not pass anything over someone’s crossed arms.

If a person has their arms crossed and someone hands them an object over the top of their arms, it is believed to trap negative energy or create conflict. This superstition is especially common in social or family settings where physical gestures hold symbolic meaning. To avoid this, people wait for the person’s arms to uncross or hand them items at their side instead. Even though not everyone believes the superstition literally, it remains part of Portuguese etiquette. 

Conclusion

Portuguese superstitions offer a fascinating look into the country’s personality, values, and long cultural memory. Even though some of these beliefs are now shared with a smile rather than complete seriousness, they continue to shape how people celebrate holidays, set their tables, move through their homes, and interact with one another. These traditions connect generations, spark conversations, and give depth to daily life. Whenever you see someone flip bread right side up, refuse to toast with water, or carefully place a bag on a chair instead of the floor, you are witnessing small but meaningful pieces of Portuguese culture!

For a few unforgettable moments in 2020 and 2021, the sound of Formula 1 cars echoed through the hills of the Algarve. At that time, millions of viewers around the world discovered that the Portimão circuit, with its dramatic elevation changes and sweeping corners, was an ideal stage for top-tier racing. Then, the F1 calendar returned to its usual long-term contracts and high-budget venues, and Portugal was left wondering whether it had seen its last Grand Prix for a very long time.

In 2025, that question has begun to feel urgent again. Portugal’s prime minister publicly announced that the country has everything ready to bring Formula 1 back to Portuguese soil and that 2027 is the target year. For motorsports fans across the country, this was the most encouraging sign since Hamilton’s 2021 victory at Portimão. However, to understand whether a return is realistic, it helps to explore Portugal’s long and fascinating history with Formula 1 and to see how recent developments may shift the balance in its favor.

A Short History of F1 in Portugal

The Early Street Circuits of Porto and Lisbon

Portugal’s first taste of international motorsport came in the early 1950s, when the Portuguese Grand Prix was run as a sports car race on the Boavista street circuit in Porto. The track snaked through public streets lined with buildings, cobblestones, and tram tracks, which created an unpredictable and extremely dangerous environment for drivers. The event later moved to the Monsanto Park circuit in Lisbon. It was a narrow and twisting layout that offered little margin for error.

Portugal officially joined the Formula 1 World Championship calendar in 1958. The races alternated between Porto and Lisbon, and although the country’s participation was brief, the events delivered some memorable moments. Stirling Moss famously defended Mike Hawthorn after an on-track incident in 1958, which helped Hawthorn keep the points he needed to win the world championship. In the following years, accidents and safety concerns became too significant to ignore, and by 1960 Portugal stepped away from the F1 calendar for more than two decades.

Estoril – 1984 to 1996

Formula 1 returned to Portugal in 1984 at the Autódromo do Estoril, a modern circuit outside Lisbon that quickly built a legendary reputation. The first race at Estoril decided the world championship as Niki Lauda edged out Alain Prost by half a point. In 1985, torrential rain transformed the circuit into a treacherous lake, and a young Ayrton Senna delivered a masterclass in wet-weather driving that earned him his first Formula 1 victory.

Throughout the late eighties and into the mid-nineties, Estoril became a beloved stop on the calendar. However, as safety standards rose, the circuit struggled to meet increasingly strict requirements. Renovations stalled, negotiations grew difficult, and, by 1996, the Portuguese Grand Prix disappeared once again. From that moment on, Estoril remained a beloved nostalgic memory rather than a realistic option for the modern Formula 1 world.

Portimão’s Spotlight – The 2020 and 2021 Comeback

When the COVID-19 pandemic forced Formula 1 to rebuild its 2020 calendar with flexible, fast-to-organize venues, Portugal received an unexpected opportunity. The Algarve International Circuit in Portimão, completed in 2008, offered an ideal combination of modern safety standards, demanding corners, and thrilling elevation changes. It was already popular among motorcycle racers and testing programs, but it had never hosted a Formula 1 race until the pandemic opened the door.

The 2020 Portuguese Grand Prix

The 2020 race became an instant classic. Lewis Hamilton claimed his 92nd victory and broke Michael Schumacher’s record for most Formula 1 wins – and he did it on Portuguese soil. The hills of Portimão created a dramatic backdrop for his achievement, and the global attention placed a bright spotlight on the Algarve.

The 2021 Portuguese Grand Prix

Formula 1 returned in 2021 for a spring race that once again showcased the circuit’s exciting nature. Hamilton won again, and many drivers praised the layout for being challenging, unpredictable, and, above all, fun. Fans hoped that Portimão had secured a long-term place on the calendar, but once the pandemic disruptions ended and traditional contracts resumed, Portugal found itself without a spot for the 2022 season and beyond.

Why Portugal Fell Off the Calendar

Portugal’s absence had little to do with the quality of the circuit or the enthusiasm of fans. The modern Formula 1 calendar is capped at 24 races, and nearly all of those slots are secured by long-term agreements worth tens of millions of dollars. New bids arrive every year from countries offering large financial packages and state-of-the-art facilities. Even successful events can be pushed aside simply because they cannot match the financial or political weight of competing hosts.

Portugal faced a simple reality – a great circuit is not enough. To return, it needed a long-term strategy, government support, and a strong financial case. For several years, these elements were not aligned.

But now, that alignment is beginning to change.

The 2027 Push – What Has Changed

In 2025, Portugal’s prime minister announced that the country is prepared to bring Formula 1 back to the Algarve. During his speech, he signaled a clearer and more strategic commitment than at any point since Portimão last appeared on the calendar. Rather than offering vague enthusiasm, the government outlined a realistic plan centered on securing a race for 2027, which gives all parties enough time to negotiate commercial terms, align schedules, and ensure that the circuit remains in top condition. This multi-year window is important because Formula 1 contracts are complex, financially demanding, and often influenced by long-term commitments from other nations.

Several factors now work in Portugal’s favor. The Algarve International Circuit already holds the required certification, has successfully hosted two Formula 1 weekends, and continues to welcome major international events such as MotoGP, which helps maintain and justify ongoing upgrades to its facilities. These existing strengths mean the track does not need to be significantly reinvented. It will require only continued investment and political backing.

That political backing has become far more visible. Hosting a Grand Prix requires a combination of public support, private investment, and strong logistical coordination. The Portuguese government indicated its willingness to participate meaningfully in the process and conveyed an understanding that the benefits of an F1 return extend well beyond motorsport and into tourism, international visibility, and the broader economic health of the Algarve region. With the Algarve positioned as one of Portugal’s major economic drivers, especially outside the summer season, a Grand Prix weekend would serve as a high-impact promotional tool capable of drawing a substantial number of visitors and global media attention.

Individually, none of these developments guarantee that Formula 1 will return. Together, however, they represent the strongest and most organized effort Portugal has made in decades. The strategy is now focused on presenting a coordinated and compelling case for why the sport should return to Portimão and why 2027 will be the ideal moment to make it happen!

Where Would F1 Race in Portugal?

Algarve International Circuit, Portimão

If Formula 1 returns, Portimão is the clear frontrunner. The circuit already possesses the necessary approval for F1 racing and has proven itself with two successful events. Drivers enjoy its rollercoaster layout and fast rhythm, and the region has the hotels, highways, and transport infrastructure needed for international events. Politically, financially, and logistically, the Algarve is the centerpiece of Portugal’s push.

What About Estoril?

The Autódromo do Estoril remains active and full of history, but it would require significant investment to meet today’s Formula 1 standards. The government has shown no interest in revisiting Estoril as a candidate. For now, it remains a beloved chapter of Portugal’s racing past rather than a realistic host for future races.

Why F1 Returning Makes Sense

Why Portugal Benefits

A Grand Prix weekend brings tens of thousands of visitors, international media coverage, and a powerful marketing boost. The Algarve in particular benefits from shoulder-season tourism, and a race held in spring or autumn would attract fans from across Europe. The event also supports jobs, hospitality businesses, transportation networks, and a broader motorsport ecosystem.

Why Formula 1 Benefits

Portimão offers a layout unlike most circuits currently on the calendar. Its elevation changes and flowing curves create visually stunning racing and challenge drivers in ways many modern tracks do not. As Formula 1 continues to expand globally, it also values venues that offer reliability and strong fan engagement. Portugal proved both during the pandemic seasons and earned a large amount of goodwill that could play a part in future decisions.

So Is F1 Coming Back to Portugal?

Right now, nothing is confirmed. Formula 1 has not added Portugal to the 2025 or 2026 calendars, and the sport is careful about announcing new races until contracts are fully secured. However, the conditions for an F1 return are better today than they have been in many years. Portugal is organized, publicly committed, and strategically focused on 2027.

Portugal currently does not have a confirmed race, but it has a serious plan and a strong argument. If the negotiations succeed, the roar of Formula 1 engines could once again rev their way through the hills of Portimão and give fans a long-awaited chance to see their country back on the world stage of motorsports.

For now, it is a story worth watching, especially for anyone hoping to head down to the Algarve for the weekend and catch the full-throttle excitement of a Grand Prix! Let’s see what 2027 brings! 

Few events in financial history are as astonishing as the Portuguese Bank Note Scandal of 1925. It was a real-life story of deception so extraordinary that it almost sounds like fiction. At the center of the plot was a man named Artur Virgílio Alves Reis, a clever and ambitious Portuguese fraudster who managed to convince one of the world’s most respected printing companies to produce legitimate Portuguese banknotes based on forged documents. The result was a wave of economic chaos that made the Portuguese lose faith in their leaders and helped pave the way for a new dictatorship.

What follows are fifteen incredible facts about this unbelievable episode in Portuguese history.

1. Artur Alves Reis started out as a poor young man with big ambitions.

Born in Lisbon in 1896, Reis grew up in a modest household but dreamed of a life filled with wealth and influence. He briefly attended engineering school but dropped out after his first year. He later forged a diploma from a fake institution called the “Oxford Polytechnic School of Engineering” so he could present himself as a legitimate engineer.

2. His first major crime happened in Angola years before the bank note scheme.

Before he became famous for his financial deception, Reis was already dabbling in fraud. While living in Portuguese Angola, he forged checks and manipulated accounts to gain control of a company called Companhia Ambaca. He was eventually caught and arrested but managed to secure an early release after only a few weeks in jail. During his time behind bars, he began to develop the outline for what would become one of the boldest crimes in world history.

3. The core of his plan was not to counterfeit money but to print real notes using forged authorization.

Unlike typical counterfeiters, Alves Reis realized that he did not need to print fake notes if he could trick the right people. He forged a contract that appeared to be from the Banco de Portugal. This authorized him to print new 500-escudo bank notes for use in the colony of Angola. This document looked completely authentic and included fabricated signatures and stamps from bank officials and the Portuguese government. Alves Reis took the forged papers to the respected London printing company Waterlow & Sons, which at the time printed official Portuguese currency. Believing the documents were real, the company agreed to produce the notes.

In other words, Alves Reis was not counterfeiting money in the traditional sense. The notes were real, printed on the same paper with the same ink and equipment as the legitimate ones, but they were ordered under false pretenses.

4. The amount of money printed was so large that it equaled nearly one percent of Portugal’s economy!

The contract authorized the printing of about 200,000 banknotes, each worth 500 escudos. That amounted to a total face value of 100 million escudos, which was close to one percent of Portugal’s entire gross domestic product at the time! The enormous scale of this scheme made it one of the most damaging financial crimes ever attempted in Europe.

5. He created a fake development bank to launder the money.

To move the new cash into circulation without raising suspicion, Alves Reis established a front company called the Banco de Angola e Metrópole. Officially, it was meant to promote investment and development between Portugal and its African colony, Angola. In reality, it was a way to distribute and launder the illicitly printed money. Reis and his partners used the funds to buy property, invest in businesses, and even acquire shares in the Banco de Portugal itself. His ambition was so vast that he hoped to take control of the central bank from within.

6. For months, the scheme worked perfectly.

The forged notes flowed freely into the Portuguese economy. Because they were identical to genuine notes, banks and merchants accepted them without hesitation. Reis used the cash to fund numerous ventures, including real estate, transportation, and agriculture. He even became known for his generosity and charm. He donated to charities, hosted elegant parties – what was not to like? Lisbon’s elite began to view him as a rising financial genius. Nobody suspected that his growing empire was built on deception.

7. The discovery of duplicate serial numbers exposed the entire plot.

The downfall of the operation came from an unavoidable detail: serial numbers. Because the fake notes were printed using real templates, they duplicated serial numbers already assigned to legitimate currency. Eventually, bankers noticed two identical 500-escudo notes with the same serial code. When the Banco de Portugal began to investigate, the shocking truth emerged. A large portion of the nation’s circulating currency had been illegally printed!

8. The scandal caused a nationwide panic and a financial crisis.

Once news of the duplicated banknotes spread, public trust in the Portuguese financial system collapsed. People rushed to withdraw their savings, and the value of the escudo plummeted. The Banco de Portugal was forced to recall every 500-escudo note in circulation within a few weeks. Businesses struggled to determine which bills were valid and which were part of the forgery. The crisis sent shockwaves through Portugal’s economy and shattered confidence in the country’s institutions.

9. The British printing company was sued and forced to pay huge damages.

The Banco de Portugal filed a lawsuit against Waterlow & Sons in the British courts, claiming that the company had printed the notes negligently. After a long and complicated legal battle, the court ruled in favor of Portugal. Waterlow & Sons was ordered to pay damages of more than £600,000, which was an enormous sum at the time. The case became one of the most famous corporate lawsuits in British legal history.

10. The scandal contributed to the fall of Portugal’s First Republic.

The fraud came at a moment of growing political instability. The Portuguese public was outraged, not only at the deception but also at the government’s apparent incompetence in preventing it. In 1926, only a year after the scandal broke, a military coup overthrew the fragile First Republic and began a new era of authoritarian rule. The chain of events eventually led to the long dictatorship of António de Oliveira Salazar, who would dominate Portuguese politics for decades.

11. Artur Alves Reis lived like a king during his short reign as a fake millionaire.

While his scheme lasted, Reis enjoyed incredible luxury. He purchased mansions in Lisbon, filled his home with fine art, and drove expensive automobiles. He even built a collection of properties in the countryside and funded numerous public works to boost his public image. He became known as one of the wealthiest men in Portugal, admired by many who had no idea that his fortune was based on fraud.

12. His partners came from across Europe and included diplomats, traders, and businessmen.

Reis did not act alone. His closest associates included José Bandeira, a Portuguese trader who used his diplomatic connections to add legitimacy to the forged documents. Others included a Dutch businessman named Karel Marang and a German trader named Adolph Hennies. Each played a role in distributing the money and managing the growing network of fake investments. When the fraud was discovered, some fled the country while others faced prison sentences alongside Reis.

13. The press exposed the scandal after months of rumors.

In the fall of 1925, Portuguese journalists began noticing strange financial activities surrounding the Banco de Angola e Metrópole. Reporters from the Lisbon newspaper O Século launched an investigation and found irregularities in the company’s operations. On December 5, 1925, the paper published a front-page article revealing the massive fraud. The next day, authorities raided the bank, seized documents, and arrested Alves Reis. The front-page headline declared, “The Country in Crisis,” capturing the public shock that followed.

14. Alves Reis was sentenced to twenty years in prison but served only ten.

His trial began in 1930 and attracted huge attention. Despite his confident defense, the evidence was overwhelming. He was sentenced to twenty years in prison, the maximum penalty for fraud in Portugal at the time. After serving ten years, he was released in 1945 for good behavior. In his later years, he lived quietly and never regained his former influence. He died of a heart attack in Lisbon in 1955 at the age of 59.

15. The scandal remains one of the most extraordinary frauds in modern history.

The Portuguese Bank Note Scandal is remembered not just for its size but for its sheer audacity. Alves Reis did not rely on crude counterfeiting. Instead, he exploited weaknesses in bureaucracy and trust. He proved that confidence, paperwork, and presentation could be as powerful as ink and paper. The affair has since been studied by economists, historians, and criminologists as an example of how fragile financial systems can be when oversight and verification are weak.

Why This Story Still Matters

The story of Artur Alves Reis is both fascinating and frightening. It demonstrates how an ambitious individual with a deep understanding of systems and psychology can manipulate entire institutions. By exploiting trust, bureaucracy, and colonial politics, Reis created chaos that reached from Lisbon to London and beyond.

The scandal revealed how vulnerable financial institutions can be when checks and balances fail. It also showed that economic crimes do not just hurt banks. They can also alter the political course of a nation. In Portugal’s case, the resulting loss of public faith helped usher in decades of authoritarian rule.

Today, collectors still hunt for the infamous 500-escudo notes, which are prized relics of one of the boldest crimes ever attempted. The story endures as a reminder that the most dangerous frauds are not the ones printed in secret basements, but those committed in plain sight, wrapped in the appearance of legitimacy.

The Portuguese Bank Note Scandal remains an almost unbelievable tale of ambition, intelligence, and deception so daring that it nearly brought a nation to its knees. It is truly one of the greatest financial stories you’ve probably never heard before and surely one that Portugal would like to forget forever.