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Portugal is bordered by Spain to the north and east and by the Atlantic Ocean to the west and south. In addition, Portugal contains several island territories in the Atlantic, including the Azores (Açores) and Madeira (including the Savage Islands).

The culture of Portugal is a very rich country in terms of culture, its culture has been maturating for centuries. It is shaped in its roots firmely in Latin culture with Celt-Iberian background. Due to its longterm relation with its former colonies, these are important to one distinguishe the portuguese national culture from other Latin cultures in Southern Europe.

In 1975, Portugal granted independence to its Overseas Provinces (Províncias Ultramarinas in Portuguese) in Africa (Mozambique, Angola, Guinea-Bissau, Cape Verde and São Tomé and Príncipe). In that same year, Indonesia invaded and annexed the Portuguese province of Portuguese Timor (East Timor) in Asia before independence could be granted. The Asian dependency of Macau, after an agreement in 1986, was returned to Chinese sovereignty in 1999. Portugal applied international pressure to secure East Timor's independence from Indonesia, as East Timor was still legally a Portuguese dependency, and recognized as such by the United Nations. After a referendum in 1999, East Timor voted for independence and Portugal recognized its independence in 2002.

During the 15th and 16th centuries, Portugal was a major economic, political, and cultural power. The overseas empire was pervasive across the world.

The first known people that lived in Portugal were the Oestriminis, that stretched their territory from Galicia (Northwestern Spain) to the Algarve. They are today seen as the first native people.

With the 1975-76 independence of its colonies (except Macau, because it hadn't any independentist movement), the 560 year old Portuguese Empire had already effectively ended. With it, 15 years of war effort also came to an end. Also many Portuguese returned from the colonies, coming to comprise a sizeable sector of the population and starting an economic recovery, thus opening new paths for the country's future just as others closed. In 1986, Portugal entered the European Union.

Portugal is characterized by city, town or village cultural differentiation and there is virtually no regional affiliation, unlike other European countries. Portuguese is spoken throughout the country, with only the villages of Miranda de Douro's Leonese dialect recognised as a locally co-official language. It is known as Mirandese. The closely related Asturian dialect in Spain is another Leonese dialect but not officially recognized by Spain.

The Socialist Party, under the leadership of António Guterres, came to power following the October 1995 parliamentary elections. The Socialists later won a new mandate by winning exactly half the parliamentary seats in the October 1999 election, and constituing then the XIV Constitutional Government.