This paper analyzes the impact of foreign presence on the probability of exit of host country firms, based on a significant sample of Portuguese companies from manufacturing and services over the period 2008–2012. The estimation results of a probit model strongly indicate that foreign presence at the industry level increases a host country firm’s probability of exit from manufacturing sectors. We also conclude that firms with foreign ownership have a lower probability of exit than purely domestic firms. Additionally, empirical findings also confirm that a firm’s probability of exit is influenced by the firm’s characteristics such as age, productivity and debt structure.