Israel and Portugal established full diplomatic relations in 1977, while Israel already had diplomatic mission in Lisbon in the Consulate-General level which was later upgraded to embassy level.

The Estado Novo did not recognize Israel, and only after the Portuguese revolution of 1974 did Portugal recognize Israel and establish a relationship.

[2] Even without relationship, Portugal allowed the United States of America airplanes to stop in the Azores Islands on the way to Israel as part of Operation Nickel Grass to deliver weapons and supplies to Israel during the Yom Kippur War in 1973.

[3] Since 1994 both Israeli and Portuguese nationals do not need visas to visit each other.

[4] On 25 September 2006, Israel and Portugal signed an Avidness double taxation agreement which entered into force on 31 December 2007.