Investment Incentives in Portugal

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Portugal flag Portugal: Investing

Incentives or guarantees

Forms of Aid
A foreign company setting up in Portugal is more and more likely to benefit from subsidies, facilitation of formalities for creating a company, financial incentives such as partial financing of a project (from 15 to 50% of the amount of the investment for a tourist project), and regional incentives.

For further information, consult the Institute for support for SMEs website (IAPMEI) and the Portuguese Institute for Trade, Tourism and Investment website ICEP.

Privileged Domains
Fishing, agriculture, renewable energies, tourism and electronics.
Privileged geographical sectors
The National Strategic Tourism Plan advances regions for tourist development and some sub-sectors.
There are no privileged zones for foreign investment.
For important dossiers (more than 25 million euros) the numbers of jobs created (fundamental), the added value of the goods, the contribution of technological innovation and the export possibilities of the goods will all be analyzed before aid is granted.

For further information on regional aid, consult the European Union website.
Privileged Geographical Zones
One of the institutions which is part of AICEP (the Portuguese Agency for Investment and Foreign Trade) is AICEP PARQUES which owns areas for setting up companies and industrial estates. They are located in areas which are economically disadvantaged (and in which apply the fiscal and social measures in favor of companies with the aim of stimulating employment) but which are strategically placed from a geographical point of view for easy access to road, rail and sea transport.
Country Risk

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Tax incentives offered to foreign investors

Special tax treatments
Incentives under Portuguese tax legislation include financial derivatives; the free-trade zones of Azores and Madeira; investment tax credits; incentives for small companies; tax credits for R&D investments; and creation of jobs for persons under 30 years old. For more information on theses tax incentive programs you can consult Invest in Azores Agency's website (APIA) and the Agência para o Investimento e Comércio Externo de Portugal (AICEP).
Useful Links
Institute for support for SMEs and investment (IAPMEI)

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