Incentive System for Productive Innovation

INCENTIVE RATE (on eligible expenditure)

BASE:

• Micro and small companies: 45%
• Medium-sized companies: 35%
• If investment ≥ 15 Million: 15%
• Non-SME: 15%

MAJORITY:

MAXIMUM RATE (per region):

• North, Center and Alentejo: 75%
• Lisboa: 40%
• Algarve: 60%
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TYPE OF INCENTIVE

The total incentive for the project will be divided into:

• Non-refundable incentive (50%)
• Refundable incentive (50%)

Incentive conditions

Non-refundable (non-repayable)

• This incentive amount is granted definitively if the company achieves the following objectives

hired, in the post-project year (last year of investment + 2 years)

Repayable (loan)

• No interest or other charges
• Capital grace period - 2 years;
• Deadline for returning the incentive - 6 years.

For tourism projects

• Capital grace period - 3 years;
• Deadline for returning the incentive - 7 years

ELIGIBILITY CRITERIA

• Comply with the legal conditions required to carry out the activity;
• Be up to date with the tax and social security authorities;
• Have an architectural project approved at the time of application (Tourism);
• Have SME certification (if applicable);
• Have a Financial Autonomy ≥ 15% in the case of SMEs and ≥ 20% in the case of Large Companies

Company;

• Keep the supported productive investment allocated to the respective activity, as well as the

defined geographical location, for a period of 5 years (Large Companies) or 3 years

(SME) upon completion of the project;

• Minimum eligible investment of 75 thousand euros;
• Have an application date prior to the start date of the work.

any advances for signage;

COMMUNITY FRAMEWORK - PORTUGAL 2020

The EU framework earmarks around 6 billion euros to finance projects

investment promoted by SMEs and large companies.

CFEI II - Extraordinary Investment Tax Credit II

Law no. 27-A/2020, of July 24th

The tax benefit to be granted to the taxable persons referred to in the previous article corresponds to a deduction from the IRC taxable amount of 20% of the investment expenses in assets allocated to the operation, which are made between July 1, 2020 and June 30, 2021.