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1. Introduction

Portugal is now on the radar of many international investors wishing to move into Europe, a safe haven in a world facing growing regional and geopolitical conflicts. According to the Global Peace Index, Portugal ranks 7th globally and 5th in Europe. Portugal offers unique living conditions, a welcoming environment and offers investment opportunities in a wide variety of sectors.

The purpose of this briefing is to provide an overview of the various government incentives available in Portugal, which include incentives backed by the European Union under the «Portugal 2030» programme (2021-2027, €23,000 million) and the «Recovery and Resilience Plan» (Plano de Resiliência e Recuperação, "PRR") (2021-2026, €22,216 million), as well as tax incentives that are currently accessible to both international and local investors.

Other key information concerning the most relevant aspects of doing business or working in Portugal is available at www.macedovitorino.com/en/Why-Portugal. The «Why Portugal» webpage contains a description of the main aspects that concern businesses and individuals investing in Portugal, including:

• How to set up a business.
• Forms of investment incentives and government grants available and how to apply.
• Getting a Portuguese residence permit or a golden visa.
• Hiring employees, employers' obligations and rules concerning the dismissal of employees.
• Portugal's main taxes, including among others personal and corporate income taxes, VAT and property taxes.
• Intellectual property protection, software, patents, trademarks and technology.
• Real estate, acquisition and lease of property and financing and tax related issues.
• Dispute resolution, the judicial system and the main steps and costs of lawsuits.

2. Overview

The government plans to invest in 83 infrastructure projects using PRR funds, with €22,200 million in the transportation sector, €13,060 million in renewable energy, and €7,418 million in environment-related investments.

The PRR comprises approximately 117 investment streams and 44 reforms (post-reprogramming), with a strong emphasis on resilience, climate transition, and digitalisation.

Following the submission of Portugal’s 8^th Payment Request on 14 November 2025 and subsequent simplification adjustments, the Portuguese government projects to reach 68% financial execution (€15,096 million) and 61% completion of milestones at the end of 2025.

The PRR projects include the construction of the high-speed rail link to Porto, the largest ongoing infrastructure investment in Portugal, scheduled for completion by 2032. The tender for the first section has been awarded, and the tender for the second section has been recently announced. The government has also prioritised the feasibility study for high-speed rail links between Porto and Trás-os-Montes in north-eastern Portugal.

Government incentive mechanisms include financial incentives, repayable or non-refundable, tax benefits, and co-financing. Exceptional subsidies may also be granted, such as reimbursement of employers’ costs with the training of employees. Hiring incentives under Portugal 2030 and PRR include temporary reductions in employer social security contributions (e.g., 100% exemption for first 3 years on new jobs in low-density regions), support for youth/unemployed hiring (up to €5,000 per hire), and co-funding of training (50-80% via ESF+).

The following are the main incentive schemes now available to national and foreign investors:

• incentives granted under Portugal 2030 covering the period from 2021 to 2027;
• incentives granted under PRR that extend from 2021 to 2026; and
• tax incentives.

3. EU funded investment incentives

3.1. Portugal 2030

Portugal 2030 is an investment programme amounting to €23,000 million, which implements the Partnership Agreement signed between Portugal and the EU on 14 July 2022.

The main goals of this programme are as follows:

• to improve innovation, technological development, and competitiveness in Portugal;
• to address the goals outlined in the Paris Agreement by investing in the green transition, renewable energy, and the fight against climate change and global warming;
• to enhance the public transportation network;
• to promote better education, employment, social inclusion, and equality in access to public healthcare; and
• to implement development strategies with local governments and create "green" cities.

Portugal 2030 is structured into 12 programmes, which were approved in December 2022:

• seven regional programmes corresponding to Intercity Communities and Metropolitan Areas ("NUTS II")[1], including 2 programmes for the Azores and Madeira;
• four thematic programmes covering demographics, skills and inclusion, innovation and digital transition, climate action and sustainability, and the sea; and
• one Program for European Territorial Cooperation divided into 4 different areas (cross-border, transnational, interregional and outermost regions).

The aim of Portugal 2030 is to achieve measurable results. For a project to be approved, beneficiaries must commit to financial execution and achieve the agreed-upon results. Progress is subject to audits and monitoring.

The programme funding sources include:

• European Regional Development Fund ("ERDF") with €11,500 million (plus €139 million under European Territorial Cooperation);
• European Social Fund Plus ("ESF+")[2] with €7,800 million;
• Cohesion Fund with €3,100 million;
• Just Transition Fund ("JTF") with €224 million;
• European Maritime, Fisheries and Aquaculture Fund ("EMFAF") with €393 million; and
• an additional €1,048 million under the Connecting Europe Facility ("CEF").

As announced in January 2025, Portugal COMPETE 2030 will mobilise €3,000 million in European funds under Portugal COMPETE 2030, one of the four thematic programmes, to be supplemented with €935 million in other government programmes. By the end of December 2025, open calls for proposals under Portugal 2030 totalled €11,034 million.

3.2. Recovery and resilience plan (PRR)

PRR is a programme approved by the European Commission for implementation in Portugal. It aims to restore sustainable economic growth and strengthen European convergence over the next decade.

Following the 2023-2025 revisions, including the «REPowerEU» component, PRR totals approximately €22,200 million, comprising around €16,300 million in grants and €5,900 million in loans, as approved at the European Union level. The original execution deadline of 31 August 2026 for milestones and targets remains in place.

The main objectives of PRR are:

• Improve Social and Economic Resilience (61% of PRR): enhance economic recovery from the Covid19 pandemic and improve the capacity to respond to future crises and challenges, focussing on social, economic, and productive sectors.
• Promote Climate Transition (21% of PRR): promote the use of more sustainable resources, boost renewable energy production, and support the decarbonisation of the economy and society.
• Promote Digitalisation (18% of PRR): stimulate digital inclusion through education and training in digital skills and facilitate the digital transformation of businesses and government operations.

Applications for PRR grants and loans are submitted online at «Recuperar Portugal». The approved PRR grants are formalised through a contract between the mission unit «Recuperar Portugal» and the beneficiaries of the grants.

3.3. Procedural aspects

3.3.1. Legal framework

The general regime for the application of EU funds is set out in Decree-Law 20-A/2023, of 22 March 2023, which establishes the rules for eligibility, obligations and other procedural aspects of Portugal 2030. Portugal 2030 is also subject to Regulation (EU) 2021/1060 of the European Parliament and of the Council of 24 June 2021.

PRR is governed by Decree-Law 53-B/2021, of 23 June 2021, which sets out exceptional rules for budget execution and simplified procedures, as well as specific regulations for each call. Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021.

The various procedural aspects concerning Portugal 2030 and PRR follow broadly the same structure and formalities that we summarise below, although they are subject to either Decree-Law 20-A/2023 or Decree-Law 53-B/2021 as referred above.

3.3.2. Announcement of incentive programmes

The specific incentive programmes under Portugal 2030 and PRR are approved by a ministerial order and announced in a notice published the official gazette (Diário da República) and on the responsible agency’s websites, containing the rules of each programme.

The ministerial order approving the programme establishes the object, eligible expenses, level of support and names the managing entity. The programme notice contains the rules that businesses must follow detailing:

• the programme's objectives;
• the total amount available under the programme;
• the eligibility criteria;
• the availability period; and
• the conditions of the grants.

Each programme's notice is usually accompanied by a practical guide and a procedure manual concerning the application process, as well as templates of the statements and documents to be submitted by the applicants and the evaluation criteria.

3.3.3. Main elements of incentive programmes

Incentive programmes follow broadly the same rules, although each programme has a specific set of rules and may be more or less complex depending on the nature of the programme, types of government incentives and the potential beneficiaries.

The following are the main aspects of each programme.

(1) Businesses eligibility requirements

Each incentive programme notice will specify the types of entities that may apply – small and medium sized companies ("SMEs"), large enterprises, companies owned or controlled by the State and local and regional authorities – and may be directed to particular sectors or activities or to specific regions.

All programmes generally require beneficiaries to be in good standing, to provide evidence that they have complied with their tax obligations standing and cannot be considered in distress, i.e. to be insolvent or under analogous creditor protection.

Foreign companies doing business in Portugal through a branch or with a permanent establishment may benefit from some incentives, but it is generally advisable that they should have a local subsidiary to apply to the incentive or to partner with a local company.

Some incentive programs allow the participation of foreign companies. However, the number of such programs is limited. As most incentives require a Portuguese legal entity, it is generally advisable for foreign companies to have a local subsidiary or partner with a local company in order to apply.

(2) Project eligibility

The programmes' notices also define the types and purposes of the projected incentives, which may include among other things:

• innovation and productivity improvements;
• internationalisation;
• digitalisation; and
• environmental and sustainability projects.

For example, competitiveness incentives may include incentives for "Production Innovation" or "Qualification and Internationalisation of SME’s".

(3) Eligible expenses

Typically, eligible expenses include:

• capital investments (such as equipment, machinery etc.);
• technology and software;
• internationalisation costs; and
• consulting services.

In general, routine operating costs, maintenance investments, periodic costs, land and used-asset purchases, intra-group transactions and advertising are excluded. Costs with the acquisition of services and goods from related parties are also excluded.

In Portugal, the percentage of eligible costs covered varies by programme, region, company size, and type of investment. Generally, subsidies cover around 30% to 40% of eligible costs, particularly in innovation, productive investment and competitiveness incentives.

In specific cases, higher rates may apply, for example:

• research and development;
• innovation projects;
• entrepreneurship incentives; or
• projects located in less developed or low-density regions.

These are just some examples of incentives that may benefit from increased co-financing rates, which can reach 50% to 60%, and in more exceptional cases up to a maximum of around 80% of eligible costs. The remaining share of the investment must always be financed by the beneficiary.

In addition, incentive programmes usually define a total budget per call and set minimum and/or maximum subsidy amounts per project, or a maximum eligible project budget, all of which are detailed in the respective programme notice.

(4) Submission period

Each programme notice specifies an application period. This window is usually between 30 and 60 days per round. Some incentives may extend the application deadline and occasionally establish a second or even a third round of applications when the project budget is not fully allocated in the first or second rounds.

Submissions after the deadline are not admissible; official notices generally state that applications not fully prepared or submitted on time will be excluded.

(5) Documentation

The programmes’ notices and attachments list all required documents. Typical requirements include:

• an investment plan with technical justification;
• recent financial statements;
• a business plan with a detailed budget;
• legal status certificates;
• a feasibility study;
• tax and social security clearances; and
• incorporation documents like articles of association.

When businesses apply as a consortium or with partners - for example, with the support of a scientific or academic institution - the application must include information and documentation regarding each entity. The application documents follow a predetermined format and must be prepared in the language specified in the programme notice, in some cases Portuguese and in other English.

3.3.4. Application procedure

Although investment incentives in Portugal follow similar procedures, each incentive programme is different, and the level of complexity of the application process can vary.

Programmes such as Portugal 2030 or PRR have specific regulations, eligibility rules and procedural requirements. Each programme uses a dedicated online platform, Portugal 2030, PRR Portal, and Balcão dos Fundos (an EU funding portal), or the regional and theme programme websites.

We provide below an overview of some of the aspects that businesses should take into account in the selection, preparation and submission of their application.

(1) Verification of eligibility

To verify the purpose, the eligibility criteria and the conditions of the programmes, businesses may consult the official online platforms available at Portugal 2030, PRR Portal, and Balcão dos Fundos.

(2) Preparing information and documentation

The applicant must prepare the documentation required under the specific programme notice in the exact manner specified in the notice of the programme.

All statements, projections and declarations must be true and accurate. The statements and documents included in the applications and the use of funds are subject to compliance audits.

The recipient’s identification, the date of the decision, and the amount given of any subsidies awarded are published on the website of the General Inspectorate of Finance, a department of the Ministry of Finance (Inspeção Geral das Finanças, "IGF").

(3) Registration on application platform

Most programme notices require online submission through a designated portal, Balcão dos Fundos. Regional programme portals like Lisboa 2030 or Algarve 2030 provide direct information, guidance, and access to programme documents.

Submission of applications requires the creation of an account and log in, which allows the applicant to:

• identify projects that may be of interest and the relevant eligibility criteria and required information; and
• submit the application;
• follow up the procedure until the award;
• after the award to submit information and documentation regarding the project status, including requests for disbursements.

The programme notice will set out a date and time for submission. Some incentives may establish a second round for submissions in the case the first round does not exhaust the funds available for the programme.

Many platforms allow uploading PDFs with supporting documents and autofill some company data.

Submission of all required documents and information must be made with time, as technical issues preventing the upload of the application, system overload or missing information may prevent the submission or lead to the rejection of the application.

(4) Evaluation and award

Once submitted, the funding agency will review the application; many programmes have a pre-defined evaluation period. The evaluation scores projects based on the criteria stated in the programme notice, which may include:

• relevance of the project;
• impact;
• cost-effectiveness; and
• implementation capacity.

Project applications that meet the minimum score will be approved for funding. If approved, the applicant business will receive a formal decision and will enter into a funding agreement, which sets the terms for disbursement of funds and the reporting obligations of the beneficiary.

If not approved, the agency will notify the applicant of the rejection and will be allowed to appeal to the management of the awarding entity, although some programmes do not establish the manner in which such communication will be made. In some cases, the rejection decision may be overturned.

3.3.5. Risks and pitfalls

While Portugal's incentive programs offer significant opportunities, investors should be aware of potential challenges, including bureaucratic delays in application processing, fund disbursements and revocation of allocated funds. Past EU funded programmes, like Portugal 2020, had high rates of revoked subsidies due to mismanagement of allocation and failure to meet the projects' goals.[3]

Investors should be prepared to appeal from decisions on technical aspects of the application that are more subjective, such as the evaluation of the project merit or innovation potential. Many times, rejection decisions may be reverted at the administrative level in a timely fashion through formal administrative recourse.

Conversely, appeals to administrative courts may be long and cumbersome, often lasting 1-2 years or more. Typically successful appeals would not provide a timely resolution that would allow resuming the project without significant financial strain.

In addition, Portuguese and EU fund audits are rigorous involving both national bodies like the Agency for Development and Cohesion (“Agência para o Desenvolvimento e Coesão”) and EU oversight mechanisms, like the European Court of Auditors and the European Anti-Fraud Office. Non-compliance, such as failure to meet milestones or reporting deadlines, may result in the revocation of the incentive and require the repayment of any sums advanced together with interest.

Political shifts, including post-2026 PRR expiration or changes in government priorities, may impact certain programs and put at risk future projects, although not affect ongoing projects.

Early consultation with legal, tax and technical advisors to mitigate these risks is recommended.

4. Tax incentives

4.1. Legal framework

The main rules governing tax incentives are established in the Tax Benefits Statute (Estatuto dos Benefícios Fiscais,"EBF"), which regulates all forms of tax benefits and provides their legal basis, and the Investment Tax Code approved by Decree-Law 162/2014 of 31 October 2014 (Código Fiscal do Investimento, "CFI").

The main tax benefit schemes provided for in the Investment Tax Code include:

• Research and development incentives, including "Sistema de Incentivos Fiscais à Investigação e Desenvolvimento Empresarial" ("SIFIDE II"), which allows companies to deduct research and development expenses from their corporate income tax, and the "patent box regime" providing a tax exemption on the profits generated from research and development activities;
• Investment support tax incentives (Regime Fiscal de Apoio ao Investimento, "RFAI"), allowing companies to deduct a percentage of investments made in non-current assets (tangible and intangible) from their corporate income tax, subject to specific limits and conditions for eligible sectors (such as agriculture, industry, and tourism);
• Incentive for business capitalisation (Incentivo à Capitalização de Empresas, "ICE"), allowing the deduction for retained and reinvested profits; and
• Contractual tax incentives for productive investments, where investors may obtain tax credits and tax exemptions granted by national and local authorities.

4.2. Research and development tax incentives

4.2.1. SIFIDE II

SIFIDE II is a tax incentive programme for business research and development regulated by Articles 35 to 42 CFI.

Under SIFIDE II corporate income tax taxpayers residing in Portugal who engage in agricultural, industrial, commercial, or service activities, or non-residents with a permanent establishment in Portugal, can deduct research and development expenses from their corporate income tax, provided these expenses are not co-funded by the State through non-refundable grants.

These deductions originally applied to taxation periods from 1 January 2014 to 31 December 2025 and are expected to be extended until 31 December 2026 under a government bill proposal submitted to Parliament, which is still awaiting approval and publication.[4]

The standard deduction rate is 32.5% of eligible R&D costs incurred during the tax year; for small and medium-sized enterprises ("SMEs") that have been in operation for less than two years and have not yet benefited from the incremental rate, this base rate is increased to 47.5%.

In addition to the base rate, companies can benefit from an incremental deduction of 50% of the increase in R&D expenses compared to the average of the previous two tax years. This incremental benefit is capped at €1.5 million per year.

Overall, a company may recover up to 82.5% of its R&D investment through these combined rates. If the resulting tax credit exceeds the amount of tax due for the year, the unused portion can be carried forward and applied against tax liabilities for up to 12 subsequent years.

Only expenses must be directly related to R&D (the search for new scientific/technical knowledge or the substantial improvement of products/processes) are eligible; these include:

• Personnel. Salaries of staff directly involved in R&D. PhD holders are valued at 120% of their cost.
• Operating Costs. General overheads, calculated as a flat 55% of personnel costs.
• Tangible Assets. Acquisition of new equipment used for R&D (excluding land and buildings).
• Outsourcing. R&D services contracted from public entities or ANI-recognized institutions.
• IP Protection. Costs for registration, purchase (SMEs only), and maintenance of patents.
• Audits Costs. Specific R&D audit costs (up to certain limits).

To be eligible to apply for SIFIDE II, a company must:

• be resident or have a permanent establishment in Portugal;
• calculate taxable profit using direct methods; companies opting for indirect and simplified methods are not eligible for SIFIDE II incentives; and
• have no debts to the State or Social Security.

To apply for the exemption, the taxpayer must submit an application to the National Agency for Innovation (Agência Nacional de Inovação, "ANI"), usually by the end of the fifth month following the year of the expenses.

It is important to note that eligibility under SIFIDE II is subject to subjective assessments by ANI, which may dispute the classification of expenses as R&D, leading to potential rejections or adjustments. For example, costs must demonstrate substantial innovation, and disputes can arise over the 120% valuation for PhD holders or the €1.5 million incremental cap. Extensions beyond the current 31 December 2026 deadline are under discussion. Investors are advised to monitor updates via official ANI channels and retain detailed records for audits, which can occur up to five years post-deduction.

4.2.2. Patent box regime

The "Patent Box" regime offers a partial exemption of income from certain industrial property rights that aims to stimulate research and development and the commercial exploitation of intellectual property under Article 50-A of the Corporate Income Tax Code (Código do Imposto sobre o Rendimento das Pessoas Coletivas, "CIRC").

The "patent box" regime provides an 85% deduction on net income derived from the assignment or temporary use (licensing) of eligible intellectual property assets. Effectively, 15% of the qualifying income is subject to corporate income tax.

To qualify, the income must arise from industrial property rights (patents and utility models) or copyright on computer programs.

Following a binding ruling of the Portuguese Tax Authority, to qualify patents and utility models must be registered with the Industrial Property National Institute (Instituto Nacional da Propriedade Industrial, "INPI") and software must be registered with General Inspectorate of Cultural Activities (Inspeção-Geral das Atividades Culturais, "IGAC"), a department of the Ministry of Culture, or with the Association of Software (Associação Portuguesa de Software, "ASSOFT"), a private association which groups stakeholders in the Portuguese digital industry.

Qualifying income includes:

• royalties obtained from the temporary use or licensing of the IP;
• gains obtained from the sale or assignment of IP rights; and
• compensation for the violation of eligible IP rights.

To benefit from this regime, the taxpayer (IP right owner transferring or licensing the IP) must maintain accounting records organised in a way that clearly distinguishes qualifying income from all other income, and enabling the identification of the research and development expenses directly attributable to the specific intellectual property right being licensed or assigned.

The deduction cannot exceed the amount resulting from the formula:

DQ / DT × RT × 85%

Where:

• DQ = Qualifying expenses incurred for developing the protected asset (R&D done by the taxpayer or outsourced to unrelated entities)
• DT = Total expenses to develop the protected asset (including those incurred with related entities and acquisition costs, if applicable)
• RT = Total income derived from the IP.

Income obtained from the supply of goods or services to related entities and to entities resident in jurisdictions in blacklisted countries (including territories and regions with a clearly more favourable tax regime) is excluded.

4.3. Incentive for business capitalisation

Companies may benefit from ICE under Article 43-D EBF, a "business capitalisation" incentive which allows the deduction from the taxable profit of the cost of capital invested in the company as equity and equity like instruments qualified as "own capital" (capital próprio).

The business capitalisation incentive is essentially a "notional interest" deduction rewarding equity investments. The deduction is calculated based on a benchmark interest rate, Euribor 12 months, plus 2% spread, with an additional 20% bonus in 2026. This effectively transforms equity into a tax?deductible notional cost, reducing corporate income tax.

The benefit is a deduction from the taxable profit (lucro tributável). The amount is determined by applying a variable interest rate to the net eligible equity increase made by the company.

The deduction is not just based on the current year. It considers the sum of net equity increases from the current tax period and the previous six tax periods (a rolling 7-year benefit).

For the purposes of this incentive, "eligible capital increases" include:

• cash contributions made by shareholders;
• contributions in kind made through the conversion of credits into equity;
• share issuance premiums; and
• retained profits that are moved into reserves or kept as retained earnings.

To determine the "net increase", capital decreases, like dividend distributions from the company's reserves and capital reductions, made during the relevant period must be deducted.

The tax incentive is subject to specific ceilings. The maximum deductible amount is the highest of the following values:

• €4,000,000 per year.
• 30% of the company’s "Tax EBITDA" (as defined in Article 67(13) CIRC).

If the calculated deduction exceeds the 30% EBITDA limit, the excess can be carried forward and used over the next five tax periods.

To benefit from this deduction, companies must meet the following criteria:

• be commercial, industrial, or agricultural companies with their head office or effective management in Portugal, excluding financial institutions;
• have a regularised status with the Tax Authority and Social Security; and
• have organised accounts and not be taxed under "simplified" or "indirect" methods.

4.4. Contractual tax incentives

Investment projects related to specific activities may benefit from tax credits ranging from 10% to 25% of the eligible investment costs tax incentives for up to ten years from the project completion under Investment Tax Code (Articles 2 et seq. CFI), provided the investment equals or exceeds €3 million. This support scheme is in force until 31December 2027.

The exact percentage of tax credits (between 10% and 25%) is determined considering various factors, i.e. region, job creation and strategic relevance to the national economy. The maximum aid (i.e. the percentage of eligible costs that can be covered by the tax credit and other incentives) is subject to the limits set by the European Union’s regional aid map and State-aid regulations. These rules may affect the effective tax credit available for certain projects or regions.

In addition, recipients may also benefit from exemptions or reductions in municipal property transfer tax (Imposto Municipal sobre Transmissões Onerosas de Imóveis, "IMT"), municipal property tax (Imposto Municipal sobre Imóveis, "IMI"), and stamp duty (imposto de selo) (Article 8 CFI).

Unlike other tax benefits (like RFAI), which are applied automatically upon meeting criteria, contractual incentives require a formal agreement between the investor and the Portuguese State represented by the Portuguese Foreign Investment Agency (AICEP - Agência para o Investimento e Comércio Externo de Portugal, "AICEP").

The activities benefitting from tax incentives include:

• extractive and manufacturing industries;
• tourism;
• information technology and related services;
• agriculture, aquaculture and forestry;
• audiovisual and multimedia production;
• shared services;
• defence, environment, energy and telecommunications; and
• research and development.

To qualify for these tax deductions, investors must meet the following conditions:

• have adequate technical and management capacity;
• demonstrate a sound financial situation;
• accounting records must be properly organised and suitable for the analyses required for the assessment and monitoring of the project;
• the taxable profit must not be determined by indirect methods;
• financial contribution, from their own resources or through external financing free of any public support, must represent at least 25% of the eligible costs;
• the beneficiary companies must not be considered in difficulty;
• have their tax and social security situation duly regularised; and
• not be subject to an EU injunction for the recovery of illegal State-aid.

For non-SME projects located in the Lisbon and Algarve regions, Article 4(4) CFI imposes additional restrictions. Only investments in new establishments or diversification into new activities (not similar to those already carried out) are eligible for contractual tax benefits.

The eligible investments for the tax credit, defined in Article 11 CFI, include various new tangible and intangible fixed assets (such as equipment, machinery, software and patent licenses), as well as employee wages, subject to specific limits and conditions. For non-SMEs, there are additional restrictions on the types of eligible investments and their location.

The tax benefits may include:

• tax credits;
• reduction or exemption from real estate taxes, IMT and IMI, applicable to the buildings used by the investor for the implementation of the project during the period set out in the investment contract; and
• exemption from stamp duty regarding all acts or contracts required to carry out the project.

Investors that meet the above-mentioned requirements, can apply for contractual tax benefits granted to productive investments if their projects meet at least one of the following conditions may qualify for contractually defined fiscal benefits:

• contribute to the strategic development of the national economy;
• significantly reduce regional disparities; and
• promote technological innovation, advance national scientific research, enhance environmental sustainability, or improve competitiveness and productivity.

To access these benefits, the investor must submit an electronic application to one of the State investment agencies, AICEP (for large enterprises) or IAPMEI (for SMEs) before the start of the investment project.

Approved projects are subject to ongoing monitoring and reporting obligations, and all supporting documentation must be retained for audit purposes. Investment incentives may be revoked under the following circumstances:

• if the project developer fails to meet contractually defined obligations;
• if the project developer does not comply with tax obligations; or
• if the project developer provides false information or presents manipulated data during project presentation, evaluation, or monitoring.

If the contract is terminated, the project will lose its tax benefits, and the developer will be required to repay the uncollected tax revenue plus interest.

4.5. Other property tax exemptions

In addition to the exemptions of property taxes set out in the Investment Tax Code, municipalities have the discretion to grant total or partial exemptions from IMI or IMT for certain qualifying investments within their jurisdiction under the Municipal Finance Law approved by Law 73/2013 of 3 September 2013 (Lei das Finanças Locais).

Pursuant to the Municipal Finance Law, these local tax incentives must serve a relevant public interest and have a local or regional economic impact. The exemptions typically apply to urban rehabilitation initiatives located in areas officially recognised for urban renewal.

The process for awarding these exemptions involves the municipal assembly, which acts upon a proposal from the municipal council. The municipal assembly is responsible for adopting regulations that set out the criteria and conditions governing the granting of total or partial exemptions from municipal taxes and other local levies.

The measures are required to be general in scope and to observe the principle of equal treatment. Exemptions may be granted for a maximum period of five years, with the possibility of a single renewal for an additional five years.

The granting of these benefits is subject to a municipal resolution, which is often linked to objectives such as local economic development, job creation, or urban rehabilitation. Only eligible expenses are covered, and these typically exclude routine operational costs. Applicants must demonstrate that their projects are viable and comply with requirements similar to those set out in the Tax Benefits Statute and the Investment Tax Code.

4.6. Tax incentives for wage increases

Companies subject to corporate income tax may benefit from an additional 100% tax deduction on employment?related expenses associated with salary increases granted to employees under "permanent employment contracts", under Article 19-B EBF.

This incentive covers both the fixed salary increases and the related employer social security contributions.

The scope of the incentive is expressly limited to salary increases granted in the context of "updated or newly negotiated collective bargaining agreements".

To qualify, companies must demonstrate that their average annual base salary increased by at least 4.7% compared to the previous year, and that employees earning below the company’s average wage received individual increases of no less than 4.7%.

The incentive is subject to a quantitative ceiling by limiting eligible expenses per employee to an amount corresponding to five times the national minimum wage, resulting in a maximum additional deduction of €4,350 per employee.

Comparative Table: Business Tax Incentives (2026)

5. Non-financial support mechanisms

5.1. Investment projects tracking system

Portugal has established an investment projects tracking system under Decree-Law 154/2013 of 5 November 2012, which serves to monitor projects through the various regulatory and administrative authorities responsible for issuing the permits and licenses required to launch such project.

The tracking system is not a fund allocation programme. The advantage of this system is to ensure a speedy approval of projects requiring multiple licenses and the coordination of the various authorities and regulators that may impact the project implementation.

Tracking of the necessary approvals is made by an Investors Support Committee (Comissão Permanente de Apoio ao Investidor) led by AICEP. To benefit from the tracking support mechanism, the project must meet the following requirements:

• have proven economic viability;
• be environmentally and territorially sustainable; and
• demonstrate a positive impact in at least three of the following areas:
• generating gross local added value;
• production of innovative, tradable goods and services that confer a competitive edge in the global market;
• implementing innovative technological processes or those developed in partnership with accredited scientific and technological entities;
• aligning with a region's smart specialisation strategy and/or contribution to revitalizing low-density economic territories;
• enhancing external economic equilibrium, particularly through increased exports or reduced imports;
• promoting energy efficiency or using renewable energy; or
• spillover effects on upstream or downstream activities, especially benefiting small and medium-sized enterprises.

There is no minimum investment amount threshold or specified number of jobs to be created.

5.2. PIN and PII projects

When a project is recognised as a PIN it will have priority in licensing procedures as well as benefiting from a special administrative procedure, which involves:

• simultaneous processing of the central government’s administrative procedures;
• reduction and simultaneous completion of the internal procedures determined by the administrative authorities that are responsible for issuing the necessary licenses;
• a single consultation period for the relevant administrative and regulatory procedures;
• simplification of the procedures related to the zoning plan instruments relevant to the project;
• tacit positive reports and tacit deferral under the various applicable procedures; and
• simplification of procedures to obtain construction permits.

For each PIN Project, a dedicated project manager is appointed to oversee, coordinate, and streamline all administrative procedures required for its implementation.

This manager acts as the primary point of contact between the project promoter and the public administration, ensuring interaction among the various authorities involved and facilitating the project’s progression in accordance with the applicable legal frameworks.

To be recognised as PIN, a project must satisfy the following cumulative requirements:

• represent a global investment equal to or greater than 25 million euros;
• create at least 50 direct jobs;
• be presented by investors of recognised suitability and credibility;
• have proven economic viability; and
• are susceptible to adequate environmental and territorial sustainability.

Projects that do not meet the thresholds for investment and/or job creation may still be recognised as PIN exceptionally provided they meet the remaining statutory conditions and fulfil at least two of the following additional criteria:

• their internal research and development ("R&D") activity worth at least 10% of the company's turnover;
• there is a strong component of applied innovation, translated into a significant part of its activity anchored in patents developed by the company;
• the project is deemed to have a manifest environmental interest;
• there is a strong export vocation, translated by a minimum of 50% of its turnover directed to the international market; or
• there is relevant production of tradable goods and services.

The Portuguese Government provides a similar support scheme for investments in inland areas of the country named "PII", the acronym for "Projetos de Investimento para o Interior", which benefit from a similar system of administrative monitoring, coordination and procedural facilitation, but are subject to less demanding eligibility requirements.

PII projects are geographically restricted. In general, a project may qualify as a PII if it is located in an eligible inland region (you may verify eligible regions here) and meets lower investment and employment thresholds than those required for PIN status, involving:

• a minimum overall investment of 10 million euros; and
• the creation of at least 25 direct jobs, provided that the project demonstrates economic viability and a positive impact on the local or regional economy or at least in three of the following areas:
• use of endogenous resources of the region in which they are located;
• enhancement of the region’s natural or cultural heritage;
• insertion into the region’s specialisation strategy;
• production of tradable goods and services, of an innovative nature, which provides for a competitive advantage in the global market;
• introduction of innovative technological processes or those developed in collaboration with entities from the regional scientific and technological system; or
• knock-on effects on upstream or downstream activities, particularly in small and micro-enterprises in the region in which they operate.

Like PIN projects, PII projects benefit from coordinated administrative follow up, priority handling by public authorities and procedural streamlining, including the appointment of a project manager acting as the liaison between the investor and the public administration.

6. Final remarks

Below are the key aspects to be considered by investors considering doing business in Portugal:

• Why Portugal. Portugal is a highly attractive destination for international investment, offering political stability, security, and a favourable business environment, further enhanced by its EU membership.
• Government investment programmes. The government has implemented substantial investment programmes: Portugal 2030 (€23,000 million, 2021-2027) and PRR (€16,600 million, 2021-2026), under which significant financial incentives are provided to investors.
• Types of incentive schemes. Portugal offers a wide range of incentive schemes, including EU-funded grants under tax benefits and job creation programmes. These include repayable and non-repayable financial support, tax credits, exemptions from property taxes, and co-funding for training and employment initiatives.
• Strict eligibility criteria. Eligibility for incentives is subject to strict criteria, including compliance with tax and social security obligations, financial soundness, and, in most cases, the establishment of a local subsidiary or partnership with a local company for foreign investors. Evaluation of the merit of applications may contain subjective elements. Investors should ensure that the technical solutions and project proposals are defensible and contest decisions of the more subjective aspects of the application.
• Formal application procedures. Application procedures are formal and sometimes cumbersome. Most procedures require detailed documentation, including investment plans, financial statements, business plans, and various legal certificates. Submissions are made via dedicated online platforms.
• Tax incentives. Tax incentives are available for investments exceeding €3 million, including contractual tax benefits, exemptions from property taxes and corporate income tax deductions for wage increases and R&D investments.

Non-financial support mechanisms. Portugal has created an investment projects tracking system and priority status for large-scale projects, known as PIN, as well as strategically significant inland local projects that facilitates administrative procedures and licensing.

See pdf

1. FOREWORD

The protection of intellectual property rights (IP), including copyright of literary, artistic and musical works, and patents, trademarks, and software, is an important factor to consider when starting a business.

Portugal offers a strong IP protection system, following Europe’s long legal tradition that dates back to the 19th century, with the first Portuguese Author Rights Code approved in 1851, and is aligned with European Union directives and regulations on IP.

This briefing highlights the main legal and practical aspects of IP, including the recognition of authors’ economic and moral rights, the copyright protection for literary, artistic, musical works, software and databases, and the protection of patents, designs, and trademarks. It also covers the mechanisms for enforcing these rights if they are infringed.

Other key information concerning the most relevant aspects about doing business or working in Portugal is available at www.macedovitorino.com/en/Why-Portugal. The «Why Portugal» webpage contains a description of the main aspects that concern businesses and individuals investing in Portugal, including:

• How to set up a business.
• Forms of investment incentives and government grants available and how to apply.
• Getting a Portuguese residence permit or a golden visa.
• Hiring employees, employers' obligations and rules concerning the dismissal of employees.
• Portugal's main taxes, including among others personal and corporate income taxes, VAT and property taxes.
• Intellectual property protection, software, patents, trademarks and technology.
• Real estate, acquisition and lease of property and financing and tax related issues.
• Dispute resolution, the judicial system and of the main steps and costs of lawsuits.

2. REGULATORY FRAMEWORK

2.1. Author Rights Code and Industrial Property Code

The two main pieces of legislation governing intellectual property in Portugal are the Portuguese Author Rights Code (Código do Direito de Autor e dos Direitos Conexos), which regulates the attribution and protection of authors' copyright and personal rights and other non-copyrightable works, and the Industrial Property Code (Código da Propriedade Industrial), which governs industrial property rights, encompassing trademarks, patents and designs.

Portuguese intellectual property legislation follows European directives and regulations. Portuguese IP laws offer the same level of protection as other EU countries.

2.2. Recent legislative reforms

Recent legislative reforms include amendments to the Author Rights Code by Decree-Law No 47/2023, which transposed Directive (EU) 2019/790, known as the Digital Single Market (DSM) Directive and the entry into force on 17 February 2024 of the EU Digital Services Act (DSA).

Following the amendments introduced by Decree-Law 47/2023, the Author Rights Code now grants press publishers exclusive online rights in Portugal, enforceable against digital intermediaries and makes digital platforms directly responsible for copyrighted content posted by users, requiring them to secure licences with copyright holders before hosting or sharing the content. The new legislation also grants authors the right to claim an increase in the agreed remuneration when it proves to be disproportionately low compared to the revenues that were subsequently generated by the exploitation of their works.

In turn, the DSA will impact streaming platforms and social media businesses that offer their services to recipients located in the EU, including Portugal. Businesses operating outside of the EU may be impacted. As an EU regulation, the DSA is directly applicable in Portugal without needing national implementation.

The DSA defines "online platform" as "a hosting service that, at the request of a recipient of the service, stores and disseminates information to the public", excluding the cases where the activities or functionalities of the service are minor and purely ancillary and inseparable from the primary service.

Social media services like Instagram, YouTube, Facebook and LinkedIn, as well as streaming services like Spotify or Netflix, fall under the DSA definition of online platform, although its application to streaming services is very limited because they do not distribute content that they do not know before publishing it. Online publishers and media companies also fall under the definition, although some may benefit from the exception, and, like with streaming services, its practical impact will be very limited.

Under the DSA, digital services platforms will be required to, among other things:

• adopt transparent moderation policies;
• establish reporting and reaction mechanisms for user complaints, including appeal processes; and
• publish annual reports detailing their content moderation activities, including automated moderation processes using non-human mechanisms such as AI.

While the DSA imposes a general duty to react when it receives a complaint, it expressly prohibits general monitoring or surveillance of content and users.

The type and level of compliance measures, including risk mitigation and algorithmic moderation, depend on the platforms' scale and risk profile, as well as their technical capabilities.

Platforms that fail to act in a timely manner or adequately on reported illegal content may face civil, criminal, or administrative liability, including significant financial penalties. When taking down content or imposing restrictions on accounts, platforms must provide clear reasons for such decisions. Very large platforms (e.g. YouTube, Instagram, TikTok) and very large online search engines (e.g. Google Search, Bing) have more stringent obligations regarding the management and mitigation of systemic risks as well as reporting and data sharing requirements.

The Portuguese Government, through Decree-Law 20-B/2024 of 16 February 2024, designated ANACOM, the national communications regulator, as the national Digital Services Coordinator. The Portuguese media regulatory authority, (Entidade Reguladora para a Comunicação Social, ERC), and the General Inspection of Cultural Activities (Inspeção-Geral das Atividades Culturais, IGAC) were designated as the national competent authorities for matters related to social media and other media content and matters concerning copyright and related rights respectively.

2.3. International conventions

IP rights are also protected by international treaties to which Portugal is a party. Portugal is a member of the World Intellectual Property Organisation (WIPO) since 1975 and a signatory to several key international agreements that provide broader, cross-border protection of intellectual property rights and industrial property rights, including, among others:

• Berne Convention for the Protection of Literary and Artistic Works (1886);
• Universal Copyright Convention (UCC, 1952);
• WIPO Copyright Treaty (WCT, 1996);
• WIPO Performances and Phonograms Treaty (WPPT, 1996);
• Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS, 1994);
• Madrid Agreement Concerning the International Registration of Marks (1891); Madrid Protocol (1989) (Madrid System);
• International Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organisations (Rome Convention, 1961);
• Convention for the Protection of Producers of Phonograms Against Unauthorised Duplication of Their Phonograms (Geneva, 1971);
• European Patent Convention (EPC, 1973);
• Patent Cooperation Treaty (PCT, 1970);
• Paris Convention for the Protection of Industrial Property (1883);
• Budapest Treaty (1977) on the recognition of the deposit of microorganisms for patent purposes;
• Nice Agreement Concerning the International Classification of Goods and Services for the Purposes of the Registration of Marks (1957);
• Locarno Agreement Establishing an International Classification for Industrial Designs (1968);
• Strasbourg Agreement Concerning the International Patent Classification (1971);
• Lisbon Agreement for the Protection of Appellations of Origin and their International Registration (1958); and
• International Convention for the Protection of New Varieties of Plants (UPOV Convention), 1961, as revised.

3. Intellectual property

3.1. Authors' economic and personal rights

3.1.1. Economic rights

Portuguese law grants the author an exclusive economic right to commercially exploit the intellectual works she or he has created or to which the author is entitled by law. Commercial exploitation includes the right to make copies and disseminate the work, as well as the right to license or sell such rights to another person.

As a rule, copyright over intellectual works belongs to their authors, although its economic component may be assigned to the employer or the person that commissioned the work. In the case of collective works, ownership belongs to the company, individual, or legal person responsible for organising and directing the creation of the work and on whose name the work was disclosed.

The copyright owner may give a third party the right to disclose, publish, or otherwise use the work in the ways specifically authorised, covering one or more of the economic rights.

When granting a licence to use a work, the specific rights being granted must be specified. In the absence of an express reference of specific rights, only those necessary to fulfil the purpose of the authorisation are considered licensed.

Economic rights under copyright may be transferred or encumbered. If no duration is specified, such transfers or encumbrances are presumed to last a maximum of twenty-five years (ten years for photographic works). Works may be encumbered through usufruct, temporary grants of economic rights, or by pledging the copyright.

3.1.2. Personal Rights

Like other civil law countries, Portuguese law grants the author the so-called “moral” or “personal” rights in respect of the works they create, which include the recognition of "authorship" and the protection of the work’s authenticity and integrity.

The author's personal rights include:

• the right to be identified and recognised as the creator and to preserve the work as originally expressed. The author may accept or reject proposed changes and make any modifications they considered appropriate, exercising the rights of attribution, recognition of authorship, protection of integrity, modification, and access to a copy;
• the right to decide if, when, and how the work is disclosed to the public; and
• the right to withdraw the work from circulation for compelling personal reasons, in which case the author must indemnify the affected parties.

Personal rights are untransferable and unassignable, even with the author's consent, and cannot be waived or extinguished by the passage of time.

3.2. Duration of copyright

Copyright lasts 70 years after the author’s death, even if the original work was published or came up after the author’s death. When the copyright’s term expires, the work enters the public domain and can be used freely. Falling in the public domain does not affect the moral rights, which are protected indefinitely.

3.3. Protected works

3.3.1. Literary, Artistic and Scientific Works

The Author Rights Code protect the intellectual creations in the literary, scientific, and artistic domains, irrespective of their genre, form of expression, merit, mode of communication, or purpose, naming among others:

• books, pamphlets, journals, newspapers, and other writings;
• lectures, lessons, addresses, and sermons;
• plays and musical plays works, including their performance;
• choreographic works and pantomimes, expressed in writing or by any other means;
• musical compositions, with or without words;
• cinematographic, television, phonographic, videographic, and radio works;
• works of drawing, tapestry, painting, sculpture, ceramics, tile, engraving, lithography, and architecture;
• photographic works or works produced by any process analogous to photography;
• works of applied arts, industrial designs or models, and design works that constitute artistic creation, regardless of protection under industrial property law;
• illustrations and maps;
• projects, sketches, and plastic works relating to architecture, urban planning, geography, or other sciences; and
• slogans or mottos, even if of an advertising nature, provided they are original.

Copyright protects the expression of ideas, but not the ideas themselves. Therefore, while the specific expression of an idea is protected, the underlying idea, method, or system is not.

3.3.2. Software

The Portuguese Software Law enacted by Decree-Law 252/94 of 20 October 1994, which transposed Directive 91/250/EEC, establishes the rules applicable to the legal protection of software (computer programs).

Computer programs benefit from copyright protection when they integrate and combine the programming language, the program's potential functionalities and its unique code in a way that demonstrates creative expression.

To be protected, computer programs must be original and not copied from another program. Software is protected as literary works; software owners have the right to use, reproduce and distribute it by any means and in any form, to dispose of it (including licensing or granting rights of use), and modify it in any manner.

Copyright protection extends only to the expression of the software, including the source and object code, but excludes protection for the underlying ideas, principles, algorithms, or programming methods. Original algorithms part of a computer-implemented invention that has a technical character can be patented if they meet the patentability requirements set out in the Industrial Property Code, i.e. novelty, inventive nature and industrial applicability.

The owner of the software may put into circulation originals or copies of the computer program and has the right to lease the copies. The copyright owner can also register the program at the literary property register.

Software developed by a company is presumed to be a collective work owned by the employer when created by an employee in the performance of her/his duties or under the employer's instructions, unless the parties expressly agree otherwise.

Persons authorised to use a copy of the software may utilise the program for any purpose of their choosing, including to create a backup copy or studying and testing the program’s functioning, but may not use it to infringe the software owner's rights, such as reverse engineer it or make and distribute copies.

The licensee or another person with the right to use the program or acting on behalf of a person authorised to do so can decompile parts of a program to ensure the interoperability of that software with other programs.

The unauthorised economic exploitation of software by an individual or legal person might be considered a violation of the Software Law and is considered a criminal offence under the Cybercrime Law approved by Law 109/2009, of 15 September 2009, which follows closely the European Convention on Cybercrime of 2001.

3.3.3. Databases

Databases are protected as copyright when they are considered intellectual creations as defined in Decree-Law 122/2000 of 4 July 2000, which implemented Directive 96/9/EC on the legal protection of databases. This includes cases where the selection or arrangement of the contents reflects the author’s own intellectual creation, that is, where there is originality in the way the data are chosen or organised.

When a database is not protected by copyrights, its owner benefits from special protection when there has been a substantial investment in obtaining, verifying or presenting the database contents. The exclusivity lasts for 15 years, starting from the end of the calendar year in which the database was created.

3.4. Collective management organisations

Copyright owners may delegate the management of their works to a share-based collective management organisation, such as the Portuguese Authors’ Association (Sociedade Portuguesa de Autores) or the Portuguese Software Producers’ Association (Associação Portuguesa de Software, ASSOFT).

The authority of these organisations to represent rights holders derives automatically from an individual’s status as a member, adherent, or beneficiary of the services provided by the organisation, whose corporate purpose is the management of the economic rights entrusted to them.

3.5. Registration with IGAC

Copyright protection is acquired automatically immediately after the work completion, without requiring registration, deposit, or any other formalities.

However, it is possible to register at IGAC to prove the authorship of the work. Registration provides an additional layer of protection by granting a presumption of ownership over the work.

Registration may be carried out by authors of literary, scientific, or artistic works, such as books, paintings, sculptures, or musical compositions. It can also be performed by holders of related rights, including record labels or the heirs of authors.

To register literary, scientific and artistic works, IGAC requires specific documentation. While the exact requirements may vary depending on the type of work, all applications must include the following documents:

• completed registration form: including details such as the author’s name, the title of the work, and its type;
• copy of the work: a physical or digital copy of the work to be registered; and
• proof of payment: a receipt or evidence of the registration fee payment.

Additional documentation is required depending on the type of work. For example, for computer programs, the following information must be provided:

• brief description of the program;
• programming language used;
• operation system compatibility;
• complete source code presented as a sample of the work;
• executable file of the program; and
• list of files and flowchart.

IGAC communicates its decision regarding the registration within 10 business days from the date the application is received.

The registration of literary and artistic works with IGAC requires a fee, which varies depending on the method of submission, €60 for online registration and €80 for in-person or postal registration.

4. Industrial property

4.1. Patents and utility models

4.1.1. Scope

Patents ensure exclusive use and the right to prevent others from manufacturing, offering or storing an invention that has industrial use without the owner’s consent, even if the invention is applied to a product consisting of or containing biological material or to a process that creates, treats or uses biological material. Inventions may include products, processes and new processes for obtaining already known products and substances.

The invention must be a novelty, destined for industrial use and cannot be obvious to a person with average knowledge in the technical field in question.

Discoveries, scientific theories and mathematical methods, materials or substances existing in nature, nuclear materials, aesthetic creations, schemes, rules and methods for intellectual pursuits, games or businesses, and information presentations are not patentable.

Inventions contrary to law, public policy, public health and best practices cannot be patented.

The duration of patents is 20 years following the application date subject to the payment of annual renewal fees. The patent validity can be shortened if the annual fees are not paid. For pharmaceutical and plant protection products, it is possible to apply for a supplementary protection certificate, which extends the patent protection for up to five years.

The patentholder must exploit the patented invention. The exploitation has to begin within four years, counting from the application date or three years, counting from the date of the patent grant, whichever is longer. Patents may be licensed or sold.

Portuguese patents must be registered at the National Institute of Industrial Property (Instituto Nacional da Propriedade Industrial, INPI).

European patents, which are valid in the European Patent Convention contracting States, must be registered at the European Patent Office or at INPI. Patents last for 20 years. European patents are valid in the 26 European Union countries (except for Spain and Croatia) without the need for national verification and the payment of any fees in the contracting countries. The European Patent Office is responsible for granting European patents. The application must be in one of its official languages: English, French or German.

The World Intellectual Property Organisation is responsible for granting and protecting international patents in more than 150 countries. The applicant must be a national or resident of a Patent Cooperation Treaty contracting State. National laws govern the registration process in each country.

Utility models are product or procedure inventions with industrial applicability and cannot cover biological materials. Utility models have a simplified approval procedure and are subject to examination by INPI, the entity responsible for granting and registering industrial property rights in Portugal.

Utility models are subject to the same object constraints as patents. Utility model rights last six years from the application date. The protection period can be extended for a maximum of 10 years from the day of application.

4.1.2. Registration

Patents and utility models must be registered with INPI, which is responsible for granting and managing these rights.

The application must include the following documents:

• claims defining what is considered new and inventive and characterising the invention;
• a detailed description of the invention;
• any drawings necessary for a complete understanding of the description (when applicable);
• an abstract of the invention;
• an illustration of the invention for publication in the industrial property bulletin if necessary for understanding the abstract; and
• a title for the invention.

Portuguese law allows the filing of a provisional patent application with a simple description of the invention (pedido provisório de patente), without the full documentation required for a standard application. The provisional application can be in English or Portuguese and does not require claims. It secures an early filing date and establishes priority. The provisional patent application must be converted into a definitive patent application, adding formal documentation (submitted in Portuguese) and paying the full application fee within 12 months from the submission of the provisional application. No new subject matter may be added in the definitive application; if a new matter is introduced, the conversion of the provisional application will not be accepted. When a new matter is added, the filing date will commence on the date of the change to the original application. Such new patent application cannot claim priority from the previous provisional patent application.

INPI will issue a search report within 10 months from receiving the provisional application. Based on this report, the applicant will be able to better assess the likelihood of success of the application, adjust the wording of claims or decide to make a new application that does not conflict with an existing patent or prior application. It is possible to apply online for patents or provisional patents, as well as to register utility models at https://inpi.justica.gov.pt/. 

At the European level, patents are granted by the European Patent Office (EPO) under the European Patent Convention (EPC). A European patent has a maximum term of 20 years, subject to the payment of annual renewal fees. Applications may be filed in any language; however, if not filed in one of the EPO’s official languages (English, French, or German) a translation into one of these languages must be submitted within two months of filing. After the grant, the patent must be validated in each designated Contracting State in accordance with that State's national requirements, which may include filing translations and paying national fees.

Internationally, patent applications may be filed under the Patent Cooperation Treaty (PCT, 1970), administered by the WIPO. This system allows applicants to seek protection in more than 150 countries through a single international application, but the final granting of the patent is always carried out by the national or regional offices of the countries concerned.

International and European patent fees vary depending on the method of submission, as follows:

4.2. Designs

4.2.1. Scope

Owners of designs of the product’s shape, lines, contour, colours, textures or materials have the exclusive right to use it and to prevent its use by unauthorised third parties.

To be protected, designs do not need to be entirely a novelty but must include at least a new feature or layout of already used elements but presented differently. Rights over registered designs last five years following the application date and can be renewed for consecutive equal periods of time up to a maximum of 25 years. When registered, the design is protected by copyrights since its creation date.

Unregistered Community designs are automatically protected for three years from the date of their first disclosure in the EU. This protection allows the owner to prevent unauthorised commercial use by third parties.

4.2.2. Registration

Design applications must be filed with INPI. The application must include, among others:

• indication of the products in which the design is to be applied or incorporated, using the international classification of industrial designs;
• priority details, if priority is claimed (country, date, and number of the first application);
• graphic or photographic representations of the design; and
• optionally, a short description (maximum 50 words per product) referring only to the elements shown in the representations or sample.

However, once registered, a design cannot be modified, even by its owner. Only non-essential modifications (such as scaling, enlarging or reducing the design) are permitted within a registration. Modifications to the essential characteristics of a design (such as changed lines, shapes, or ornamentation) that are new and unique, require registration as a new design.

Designs may also be registered at the European Union Intellectual Property Office (EUIPO), where a single application provides protection across all EU Member States.

At the international level, registration through WIPO provides acknowledgement of intellectual property rights in several countries, depending on the specific system used. The Patent Cooperation Treaty (PCT) has 158 Contracting States, while the Hague System for industrial designs covers about 96 countries. Applicants must be nationals, residents, or have a real and effective industrial or commercial establishment in a country that is a Contracting Party to the system in question. Recognition and enforcement of rights always depend on the laws of each country where protection is sought.

The following table sets out the fees payable for each application and the name of the entity to which it must be submitted.

4.3. Trademarks

4.3.1. Scope

Trademarks are distinctive signs used in trade to identify products and services. They grant their holders an exclusive right of use for 10 years, renewable indefinitely for equal periods.

A trademark may consist of words, personal names, drawings, letters, numbers, sounds, the shape of a product or its packaging, or even advertising slogans. To be valid, trademarks must have a distinctive character and be represented clearly and precisely so that third parties can determine the scope of protection. Marks representing the usual name of a product or service or the ones that have descriptive elements are not accepted as trademarks.

An unregistered trademark has a limited priority right. Under article 213 CPI, a mark used for less than six months may be registered with priority over third parties, and its user may oppose identical or similar applications. After this period, prior use no longer gives automatic priority, but it may still be invoked to refuse or cancel a later registration if it constitutes unfair competition (Article 232(1)(h) CPI).

The scope of protection allows the owner of a registered trademark to prevent third parties from using identical or similar signs for identical or similar goods or services, where such use is likely to cause confusion or association.

For a trademark to be considered misused or imitated (Article 238 CPI), the following requirements must be met:

• Priority. The registered trademark must have priority over the infringing trademark. Priority is determined by the date on which the trademark was filed; hence, the trademark whose registration was filed first takes precedence.
• Affinity between products and/or services. Imitation or usurpation requires that both trademarks mark goods and/or services that are identical or similar. Affinity relates to the principle of speciality, expressing protection for the distinctive function of the trademark but only for the goods or services for which the trademark was actually registered. To verify the existence of affinity, it is important to consider whether we are dealing with relations of (i) competition, (ii) substitution, (iii) complementarity, (iv) accessoriness, and (v) derivation.
• Error or confusion. Trademarks must be similar in a way that misleads or confuses the consumer, who can distinguish them only after careful analysis or comparison or understand a risk of association.
• Risk of confusion or association. Confusion may occur directly when the consumer confuses two brands, thinking they are the same, or indirectly when the consumer considers one brand a modification of another. There is also confusion in a broad sense if the consumer believes that the companies owning the brands have some economic or organisational relationship. Confusion may also arise from the likelihood of association, where the consumer considers the sign and the trademark similar, recognising the trademark but not confusing them.
• Graphic, phonetic, visual, and conceptual similarity. Graphic similarity exists when the words are written identically or similarly. Phonetic similarity occurs when the sound resulting from reading the signs is identical or similar. Visual similarity exists when the appearance of the signs is identical or similar. Conceptual similarity arises when the signs express concepts or ideas that are identical or similar.
• Easily mislead or confuse the consumer. Portuguese law requires that the risk of confusion be significant, easily misleading or confusing the consumer. To assess this, one must consider the average consumer, i.e., the consumer without a high level of attention, and determine whether, in the specific case, that consumer would be in error or would become confused.

4.3.2. Registration

The trademark should be registered at INPI, and its protection is limited to the national territory. It is possible to register trademarks online at inpi.justica.gov.pt. The application must include, among others:

• a representation of the trademark, including words, figures, drawings, and colours (if colours are claimed);
• the list of goods and/or services, classified under the Nice Classification;
• if priority is claimed: the country, date, and number of the first application;
• if the mark includes another person’s name or portrait, their authorisation; and
• if the mark contains symbols, coats of arms, emblems or distinctions of the State, municipalities, or other entities, their authorisation.

INPI can, on its own motion, refuse trademark registrations based on certain grounds for refusal outlined in the Industrial Property Code (CPI). These grounds include the reproduction of a trademark previously registered by someone else for identical goods or services (Articles 230, 231 e 232 CPI). However, there are grounds for refusal dependent on a prior complaint and cannot be identified ex officio by INPI.

A trademark application will also be refused if it is identical or similar to another previously well-known trademark in Portugal or the European Union, especially when it takes unfair advantage of the distinctive character or prestige of the other trademark, or if it could jeopardise that trademark, even if associated with different products or services.

The owner of a trademark right can also request the cancellation of a trademark registration within ten years from the date the registration was granted, through a reasoned request filed with INPI. There are no grounds for cancellation if the earlier trademark does not meet the condition of genuine use (Articles 4/5, 266 e 263 CPI).

It is important to consider the system of forbearance preclusion, which stipulates that if the owner of a registered trademark, aware of the fact, has tolerated the use of a later registered trademark for five consecutive years, they lose the right to request cancellation of the later trademark or to oppose its use (Article 261 CPI).

Beyond national registration, trademark protection may also be obtained at the European and international level. An EU trademark, registered with the EUIPO, covers all Member States of the European Union and may be applied for by any person or company worldwide.

To secure protection internationally, registration through the Madrid System (WIPO) allows applicants to seek protection in more than 100 countries, although recognition and enforcement of rights remain subject to the national laws of each country.

Once the trademark products are made available in the European Economic Area by the owner or with its consent, the owner's rights are considered expired. The trademark holder cannot disallow its use on the products. Furthermore, the trademark has to be used for five consecutive years; if not, the registration expires.

The fees vary depending on the method of submission.

4.4. Trade secrets

Any confidential business information that provides a competitive advantage can be considered a trade secret.

Trade secrets can include know-how, technical knowledge (potentially patentable or not) or business and commercial data such as lists of customers, business plans and manufacturing processes.

Disclosure, acquisition or use of the competitor’s trade secrets without its consent is considered illegal if the information: (i) is secret, meaning that it is not generally known or easily accessible, (ii) has commercial value because of its secrecy and (iii) has been subject to considerable diligence by the person responsible for the information control in order to keep it secret.

It is also unlawful to disclose or use a trade secret when the recipient of information knew or should have known when first hearing about it that such secret had been obtained directly or indirectly from another person who was using or disclosing it illegally.

It is lawful to access a trade secret when that results from an independent discovery, from an employee’s rightful access to the information in accordance with accepted practices or the law. It is also legal to study, disassemble or test a product or object that has been made available to the public or when such access complies with honest commercial practices.

Whenever there is a breach or well-founded fear that others may cause serious damage to the trade secret, the court may, at the request of the interested party, order the appropriate precautionary measures.

In the event of a trade secret breach, the court decision can order the infringer to refrain from using or disclosing the trade secret and prohibit the infringer from producing, offering, placing on the market, importing, exporting or storing the product of such secret.

When unfair competition, abuse of rights and other legal rules protecting business secrets do not apply or do not offer sufficient protection, it is advisable to enter into a non-disclosure agreement before exchanging confidential and sensitive information to business partners, shareholders, employees, suppliers and customers.

Unlike for patents or trademarks, protection is not time limited. Furthermore, this protection does not involve any formalities with competent authorities, and there is no registration fee, which means that its effect is immediate.

5. Enforcement of IP rights

5.1. Overview

The protection of IP rights in Portugal combines administrative, criminal, and civil enforcement mechanisms, which provide a wide range of complementary remedies to protect IP rights holders.

IP civil remedies aim to prevent or provide relief to the injured party against damages, through indemnification actions as well as injunctions, preservation of evidence measures, or the seizure and destruction of the infringing goods. Civil proceedings are generally brought before the Intellectual Property Court (Tribunal da Propriedade Intelectual), which holds specialised jurisdiction over IP related disputes.

Criminal liability rules aim to prevent and sanction the most serious violations of intellectual property rights and may only be applied by the criminal courts. Their role is mainly punitive, applying penalties such as imprisonment or fines, but also serve to prevent violation and reinforce rights holders' position by giving them a sanctioning framework that protects their interests.

The administrative protection measures offered to IP holders are primarily intended to prevent and sanction economic infringements and will apply in addition to or independently of civil and criminal remedies. In the field of industrial property, INPI is the authority responsible for enforcing administrative remedies, while IGAC is responsible in the field of author's and related rights.

In some cases, certain remedies overlap giving the injured party the option to choose one or seek protection from criminal, civil and administrative authorities and courts.

In addition, the Competition, Regulation and Supervision Court (Tribunal da Concorrência, Regulação e Supervisão) has jurisdiction over cases involving anti-competitive practices that result from the misuse of IP rights.

5.2. Civil remedies

5.2.1. Copyright and related rights

Rights holders may initiate civil proceedings under the Author Rights Code (Articles 201-210J CDADC) seeking the following remedies:

• the cessation of unlawful use of an author’s literary or artistic name or other identifying signs;
• damages as compensation for losses caused by any infringing conduct;
• an order to compel the infringer or third parties to produce evidence in their possession, including banking, financial, accounting, or commercial documents, provided the applicant presents prima facie evidence of copyright or related rights infringement;
• measures to preserve evidence in cases of infringement or imminent risk of serious harm, such as detailed descriptions, sample collection, or seizure of suspected infringing goods, materials, instruments, and related documents;
• an order to compel the alleged infringer or other parties in the commercial chain to provide detailed information on the origin and distribution networks of infringing goods or services, including details of producers, suppliers, quantities, and prices;
• seizure of the infringer’s assets, including bank accounts, suspected infringing goods, and instruments used in the violation;
• destruction, withdrawal, or permanent removal from commercial channels of infringing goods and the instruments used in their production;
• an injunction to stop ongoing or imminent infringement, including orders directed at intermediaries.

The court's final ruling on the merits of the case may include precautionary measures to prevent the infringing party from engaging in actions that could violate the rights holder's interests (Article 210J CDADC). These measures may also apply to intermediaries and can include:

• a temporary ban on carrying out specific activities or professions;
• the denial of the right to sell or promote products in fairs or markets; and
• the temporary or permanent closure of the establishment.

5.2.2. Industrial property

Holders of industrial property rights have similar remedies as those granted to authors and copyright owners with the differences that arise from the different nature of the object of the protected rights set out in the Industrial Property Code (Articles 339 et seq. CPI), which include seeking:

• the declaration of nullity or annulment of industrial property rights, including patents, supplementary protection certificates, utility models, topographies of semiconductor products, designs, trademarks, logos, rewards, designations of origin, and geographical indications;
• a court order compelling the opposing party or third parties to produce evidence in their possession or control, such as banking, financial, accounting, or commercial documents, provided the applicant demonstrates sufficient indications of an industrial property infringement;
• urgent court measures to preserve evidence in cases of infringement or imminent risk of serious harm, including detailed descriptions, sampling, or seizure of suspected infringing goods, materials, instruments, and related documents;
• urgent interim measures from the court to prevent imminent infringement or to prohibit the continuation of an ongoing infringement, including against intermediaries whose services are used to infringe;
• urgent court measures to prevent imminent infringement or prohibit ongoing unlawful acts related to industrial property rights;
• the seizure of the infringer’s assets, including bank accounts, suspected infringing goods, and instruments primarily used for the violation;
• damages as compensation for infringement, covering actual losses and lost profits, with the calculation also considering any unfair benefits gained by the infringer.

Following a judgment on the merits, the court may impose accessory sanctions and precautionary measures (Article 348 and 349 CPI), including the publication of the decision, the destruction of infringing goods, the temporary prohibition of certain professional activities or the exercise of certain activities or professions, the denial of the right to participate in fairs or markets, and the temporary or permanent closure of the business establishment.

The Industrial Property Code imposes the same requirements as the Author Rights Code. The applicant must provide sufficient evidence of ownership or authorisation and of an infringement or a serious and imminent risk. The measures may also be directed against intermediaries.

5.3. Criminal protection

5.3.1. General aspects

The violation of IP rights, covering both copyright and industrial property, may constitute a criminal offence.

In criminal proceedings, courts are authorised to seize of alleged offender’s movable and immovable assets, including bank account balances. Courts may also order the access to banking or commercial data and information related to the offender.

The jurisdiction to impose sanctions for criminal violations of IP rights, regardless of their nature, lies exclusively with the criminal courts and not with the TPI.

5.3.2. Copyright and related rights

The Portuguese Author Rights Code defines the following acts as criminal offences:

• the use of a work without the author's or rights holder’s authorisation;
• counterfeiting, reproducing or imitating a work without authorisation, as if it were original;
• infringing the right of paternity (authorship) or the right to the integrity of the work; and
• using of counterfeited or unlawfully used work, commercialising, distributing, or making available to the public a counterfeit or unlawfully used work.

Except for violations of moral rights, other offences are deemed public offences, meaning that criminal proceedings may be started ex officio and do not require a complaint from the rights holder.

5.3.3. Industrial property rights

Under the Industrial Property Code, the following conducts are deemed criminal offences punishable by imprisonment of up to three years or by a fine:

• infringement of patents, utility models, and semiconductor topographies, which include manufacturing products, using processes, or distributing goods that violate an exclusive patent, utility model, or topography right;
• reproducing, imitating, exploiting, importing, or distributing protected designs or models without authorisation;
• counterfeiting, imitation, and misuse use of a trademark by reproducing, imitating, or using a protected trademark without authorisation;
• unauthorised reproduction, imitation, or use of a protected trade name or business sign;
• unlawful use, reproduction, or imitation of a protected logo;
• copying, imitating, or misusing a protected designation of origin or geographical indication;
• obtaining or keeping an industrial property registration through abuse of rights; and
• registering a non-existent act or one carried out to conceal the truth.

The sale or concealment of infringing products, which includes selling, placing on the market, or hiding products that violate industrial property rights, is punishable by imprisonment of up to 18 months or a fine. Additionally, bad-faith registration, which includes obtaining a patent, utility model, or design registration in bad faith, carries a penalty of up to 1 year’s imprisonment or a fine.

All offences described above are "semi-public crimes", which means that they depend on the rights holder's filing a complaint.

5.4. Administrative Remedies

5.4.1. Copyrights and Related Rights

The following practices are deemed as economic offences under the Author Rights Code which entail a fine established in the Economic Administrative Offences Law (Regime Jurídico das Contraordenações Económicas, RJCE):

• non-compliance by importers, manufacturers, and sellers of physical media for phonographic and videographic works in reporting the quantities imported, manufactured, and sold.
• failure by manufacturers and duplicators of phonograms and videograms to report quantities they press or duplicate;
• non-compliance by manufacturers and duplicators of phonograms and videograms in reporting the quantities they press or duplicate;
• unauthorised public communication of previously commercially released phonograms and incorporated performances, without the consent of the respective author, producer, or their representatives, whether through public performance or audiovisual broadcasting.
• unauthorised public communication of videograms through television broadcasts or retransmissions, as well as works and performances incorporated therein, without the required authorisations; and
• failure to duly identify the author of a work by her/his/its name, pseudonym, or other adopted identifying marks, or to acknowledge the works on which an adaptation is based.

Under the Economic Administrative Offences Law, other accessory sanctions may be applied to the infringer by the court ruling on the infringement at the request of the affected party which may include:

• forfeiture of seized assets in favour of the State;
• temporary prohibition on engaging in a specific activity; and
• temporary suspension of the infringer's right to sell products in fairs or markets.

IGAC is the entity responsible for processing administrative offences, and the respective inspector-general is charged with determining the sanctions to be imposed on the offender (Article 206 CDADC).

In addition, under article 209 CDADC, the rights holder may request the police or administrative authorities of the place where the infringement took place to suspend unauthorised performances, recitations, executions, or other public uses of protected works, and to seize all proceeds obtained from the infringement.

Negligence and attempt are also punishable under law and repeated offences are treated as an aggravating factor that increases the severity of the sanction.

5.4.2. Industrial Property Rights

As for administrative offences regarding industrial property, very serious economic offences include unfair competition and violation of a protected trade secret. The range of serious economic offences is more extensive and includes:

• unfair competition, that is, engaging in acts contrary to honest commercial practices that cause harm to competitors, such as creating confusion with another’s products, services, or business;
• violation of protected trade secrets;
• improperly claiming or using prizes, distinctions, or rewards granted in connection with industrial property rights;
• producing, importing, exporting, acquiring, or keeping signs (names, insignia, logos, designations of origin, or geographical indications) with the intent of using them unlawfully or enabling their unlawful use;
• use of illicit trademarks by placing into circulation or using trademarks that are not legally valid or that infringe registered rights;
• using another person’s protected name, insignia, or logo without authorisation; and
• falsely claiming exclusive rights or improperly relying on industrial property rights that do not exist or are not enforceable.

The sanctions for engaging in administrative offences are established in the Legal Framework for Economic Administrative Offences.

In addition to fines, accessory sanctions may be imposed, including forfeiture of infringing goods, temporary bans on carrying out an activity, closure of establishments, deprivation of the right to participate in fairs or markets, and publication of the decision.

6. Final remarks

This briefing provides an overview of the IP protection framework in Portugal. The following are the main takeaways:

• IP Regulatory Framework. Portugal offers a stable IP protection regime, aligned with European Union directives and regulations, and is a party to several international treaties and conventions, such as the Berne Convention (1886), the Universal Copyright Convention (UCC, 1952), the WIPO Copyright Treaty (WCT, 1996), TRIPS (1994). Portugal's IP main legislation includes the Portuguese Author Rights Code and the Industrial Property Code, ensuring protection for copyright, patents, trademarks, designs, and trade secrets.
• Recent Legislative Developments. The Portuguese Author Rights Code was amended to implement the EU DSM Directive on copyright in the digital environment, granting authors and performers the right to receive additional compensation when the revenue generated by the work significantly exceeds what was expected at the time of its creation. The DSA, in force since February 2024, imposes strict rules on online platforms, specifically in large social network operators like Meta, YouTube, TikTok etc..
• Copyright and Related Rights. Authors benefit from both economic and personal (moral) rights under Portuguese law. Economic rights include the rights to transfer or license the use of the work, while moral rights, which are inalienable, protect authorship and the integrity of the work. Copyright protection extends for 70 years after the author’s death, and registration with IGAC, though not mandatory, provides a presumption of ownership.
• Industrial Property Rights. Patents, utility models, designs, and trademarks are protected under the Industrial Property Code, with registration managed by INPI. Patents last for 20 years, designs up to 25 years with renewals, and trademarks for 10 years, renewable indefinitely. Utility models offer a shorter protection period of up to 10 years with a simplified approval process.
• Software and Databases. Software is protected as a literary work under the Software Law. Databases receive copyright protection if they reflect original intellectual creation or sui generis protection when they entail significant investment, lasting 15 years.
• Enforcement Mechanisms. The Portuguese IP protection framework includes civil, criminal and administrative enforcement mechanisms. Civil remedies include, among others, actions for damages, injunctions, and the seizure of infringing goods. Serious violations, such as counterfeiting and misuse of trademarks, are subject to criminal sanctions. Administrative measures offer more expedient remedy against violations, principally of economic nature, without the need for immediate judicial intervention.

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Law 99-A/2021 approved several amendments to the Portuguese Securities Code that entered into force on January 30, 2022, of which we highlight the following:

Securities

Companies are entitled to issue multiple voting shares, with a cap of five votes per share.
Companies may also issue debt securities and increase their nominal value provided that the terms and conditions of the securities so allows it.

Issuers

All disclosure rules applicable to listed companies (e.g., annual reports and accounts, corporate governance report, payments made to public administrations, semi-annual information, insider information, managers' transactions, transactions with related parties and other information by issuers of shares and other securities) are now included in the Securities Code and some reporting duties were eliminated.

Qualifying holdings

The minimum threshold for disclosing qualifying holdings was increased from 2% to 5%, in line with other EU countries’ securities regulations.

The rules on the attribution of voting rights were simplified.

Exercise of voting rights

A 21-days prior notice for the calling of the meetings was imposed, with a shorter period of not less than 10 days being permitted in the case of credit institutions and financial companies.

Shareholders who intend to participate in a General Meeting must deliver a single statement to the financial intermediary instead of the two statements previously required (to the Chair of the General Meeting and to the financial intermediary).

Beneficial owners of securities will be entitled to directly exercise the shareholders’ rights even if they are not the direct holders of the securities, provided they present a “certificate of beneficial owner” (certificado de legitimação).

Financial intermediaries, whether based in Portugal or not, who hold shares in their own name acting on behalf of others, and other financial intermediaries in the intermediation chain, must allow the investors on whose behalf the shares are held to exercise the rights linked to the shares.

Institutional investors (e.g., insurance companies and pension funds), asset managers and so-called "voting advisors" are subject to additional transparency and disclosure rules.

Public offers

Public offers are now defined as offers of securities that require the prior disclosure of a prospectus or a document required under EU law.

The engagement of a financial intermediary to provide assistance and placement services in a public offer is no longer mandatory.

Offerors are allowed to revise the terms and conditions of an offer up to two days prior to its term subject to the authorization of the Securities Market Authority (Comissão do Mercado de Valores Mobiliários, “CMVM”).

The threshold for the publication of a prospectus was increased from €5 million to €8 million.

Prospectus

The liability for the content of a prospectus is extended to the guarantor, if any, and the mandatory liability of the financial intermediary that assists the offeror no longer applies, unless and to the extent the financial intermediary accepts to be named as such in the prospectus.

Prospectuses for offers in Portugal may be presented in English, unless CMVM opposes; when written in another language, CMVM may require the summary of the prospectus to be translated to Portuguese.

Takeovers

The acquisition of securities by inheritance will not trigger takeover rules.

The double requirement for the exercise of the right to compulsory acquisition (i.e., 90% of the total voting rights and 90% of the voting rights covered by the takeover bid) was revoked, being sufficient that the takeover reaches 90% of the total voting rights.

The takeover rules no longer apply to debt exchange offers, being only applicable to companies with shares admitted to trading on a regulated market in Portugal.

Administrative authorizations related with takeovers must be obtained within 6 months.

The competing offer rules were amended and now allow competing offers with less favorable conditions in relation to a previously announced offer.

Delisting and other amendments

Voluntary delisting is admissible when the delisting is approved in a general meeting of the company by a majority of not less than 90%, being the company obliged to acquire, by itself or by a third party, the shares of the shareholders that voted against it.

If the issuer enters in liquidation or insolvency, the securities admitted to trading must be registered with the issuer or a financial intermediary.

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Portuguese media reported that Davidson Kempner Fund (DKF) is the preferred bidder in the sale tender launched by Portuguese banks for a luxury hotels’ portfolio, dubbed the "Crow Project”, which also includes other real estate assets.

The bidding phase ended on 30 September 2021. Only two offers were presented. DKF won the bid against a consortium that included Bain Capital and Cerberus.

The Crow Project includes three important hotel portfolios:

• Fundo Recuperação Turismo (FRT);
• FLIT-Ptrel SICAV (FLIT); and
• Discovery Portugal Real Estate Fund (Discovery).

ECS, Sociedade Gestora de Fundos de Capital de Risco (ECS) manage FLIT and FRT and Explorer Investments SCR SA (Explorer) manages Discovery.

Novobanco, BCP and Caixa Geral de Depósitos are the banks with the largest exposures to these assets, with Santander and Oitante holding a smaller position in the ECS funds.

The Crow Project initially included 30 assets, mainly hotels, land plots and shopping centres. In September 2021, ECS withdrew seven assets valued at €300 million. The portfolio that will be sold includes some landmark hotels, such as the Conrad Algarve and Cascatas Golf & Resort Spa by Hilton, the NAU hotels, the shopping centres La Vie, among other real estate assets, in a transaction that is expected to be concluded in around €900 million, according to the media.

DFK is now in negotiations with ECS on an exclusive basis with closing being expected to occur in the first half of 2022.

This transaction is the continuation of Portuguese banks deleveraging efforts after the Portuguese bailout of 2011.

To protect themselves against a sharp rise in new non-performing loans that may follow the Covid-19 pandemic, Portuguese banks have been increasing their reserves beyond what is statutorily required and continue deleveraging non-performing assets.

According to local media, Portuguese banks are only available to fund up to 60% of the purchase price (around €500 million). The media also reported that bidders were not happy with the proposed conditions, as they put significant pressure to sell the assets before they are restructured.

This may be an opportunity for international banks and loan funds to take part in what may well be the Portuguese real estate deal of the year.

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Following harsh economic years, Portugal has shown an unexpected surge in tourism and in the real estate market in 2016 which is now catching the attention of local and foreign investors.

Portugal’s moderate growth rate in 2016, the support of the European Central Bank’s monetary policy and the commitment of the government to bring the deficit to 2.3% have renewed investors’ interest in Portugal. Still there are challenges ahead. Portugal needs to reduce historically high levels of Government debt and unemployment.

After implementing a harsh economic program with little social unrest, Portugal has facilitated the creation of new businesses, reduced the time for obtaining administrative permits, improved its labour legislation and reduced its corporate tax to 21%.

For international investors looking for a place to invest in Europe, Portugal offers several advantages, of which many investors are not aware. Portugal is an ideal location for nearshoring industrial and services facilities because of its access to Europe’s 500 million consumers’ market and to the Portuguese-speaking world, which spreads across five continents: Europe, America, Africa, Asia and Oceania.

Portugal has a proven track record of successful foreign investments across a wide range of sectors. Investors that are considering Portugal as a place to invest want to know the hard facts about the country and not the stereotypes associated with the country and its people. Autoeuropa, Volkswagen’s Portuguese auto-plant, is one of its most productive plants. Nokia Siemens Networks chose Portugal to install its new Global Networks Solutions Center. Microsoft, Colt, Ikea have also successfully invested in Portugal in recent years. Portugal has one of the most favourable business environments in the world. The World Bank's "Doing Business 2017" Report ranks Portugal in the top 25 of the world’s – 12th in the EU – most attractive locations to do business.

The «WhyPortugal 2017» report aims to answer the main questions of international businesses, institutional investors, private equities and industry players that are considering Portugal as a location to invest in Europe.

This report provides an overview of the opportunities and challenges of doing business in Portugal and reviews the main aspects to be considered by foreign investors considering Portugal as a place to invest as regards the setting up of a business, hiring employees, taxation and government incentives.

See pdf

Following the end of Portugal’s bailout programme by the European Union (EU), the International Monetary Fund (IMF) and the European Central Bank (ECB), which lasted from May 2011 until June 2014, foreign investors are now looking at Portugal with different eyes.

As part of the bailout programme, Portugal implemented an ambitious privatisation programme and made other reforms to reduce its public debt, attract foreign investment and foster competition in closed or semi-closed sectors.

Foreign investment showed some positive signs in 2014 pushed by the success of the privatisation programme, increased activity in private sector, M&A and investments in residential and commercial real estate.

The golden visa programme which gives foreign investors the possibility of obtaining a Portuguese visa provided they invest a minimum of €500,000 is probably the main factor in attracting investment in medium-size properties, especially in the residential market.

Still price and yield in the current market conditions remain interesting, as local banks and corporations holding large real estate investments are looking to dispose or monetize real estate assets.

The recently announced quantitative easing measures adopted by the ECB which will increase liquidity in the financial markets are likely to renew investors’ appetite for real estate assets in Europe.

The Portuguese real estate market now offers very interesting opportunities, as the country emerges from its worst crisis in the last thirty years, with good valuation opportunities.

This paper summarises certain legal and regulatory issues affecting the investment in property in Portugal.

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The Portuguese Government launched the Residence Permit for Investment Activity programme (ARI), in 2012. This program known as Golden Visa, is a quick solution for investors from outside the Schengen area to obtain a residence permit in Portugal.

This plan includes new rules on the awarding of residence permits for investment activity, known as “golden visa”, to citizens of non-European Union (EU) countries that wish to make a significant investment in Portugal and meet certain requirements.

The “golden visas” grant their holders the right to free circulation in Portugal and in the rest of Schengen area countries. In addition to general requirements applicable to residence permits, “golden visas” require their holders to undertake the obligation of investing in Portugal of certain minimum amounts for a minimum period.

In this paper, you will find an outline of the opportunities of living in Portugal and of the main aspects to be thought-out by everybody considering Portugal as a place to live.

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Following its successfully exit of the bailout of the International Monetary Fund (IMF), the European Union (EU) and the European Central Bank (ECB), Portugal is now catching the attention of foreign investors.

Portugal is no longer in the news for bad reasons. Still there are challenges ahead. Portugal needs to reduce historically high levels of Government debt and unemployment and continue reducing its budget deficit still perilously close to 3%.

After implementing a harsh economic program with little social unrest, Portugal is bringing down its chronic trade deficit and correcting some of its imbalances that have hindered its economic growth since the beginning of the millennium.

For international investors looking for a place to invest in Europe, Portugal offers several advantages, of which many investors are not aware.  Portugal is an ideal location for nearshoring industrial and services facilities because of its access to Europe’s 500 million consumers’ market and to the Portuguese-speaking world, which spreads across five continents: Europe, America, Africa, Asia and Oceania.

Portugal has a proven track record of successful foreign investments across a wide range of sectors.

Investors that are considering Portugal as a place to invest want to know the hard facts about the country and not the stereotypes associated with the country and its people.

Autoeuropa, Volkswagen’s Portuguese auto-plant, is one of its most productive plants. Nokia Siemens Networks chose Portugal to install its new Global Networks Solutions Center. Microsoft, Colt, Ikea have also successfully invested in Portugal in recent years.

Portugal has one of the most favourable business environments in the world. The World Bank's "Doing Business 2016" Report ranks Portugal in the top 25 of the world’s – 11th  in the EU – most attractive locations to do business.

WhyPortugal 2016 aims to show international businesses and institutional investors,  private equities and industry players considering Portugal as a location to invest in Europe.

This report provides an overview of the opportunities and challenges of doing business in Portugal and reviews the main aspects to be considered by foreign investors considering Portugal as a place to invest as regards the setting up of a business, hiring employees, taxation and government incentives.

See pdf

Following its successful exit of the bailout of the International Monetary Fund (IMF), the European Union (EU) and the European Central Bank (ECB), Portugal is now catching the attention of foreign investors. Portugal is no longer in the news for bad reasons.

Still there are challenges ahead. Portugal needs to reduce its historically high levels of Government debt and unemployment and bring the budget deficit to below 3%.

After implementing a harsh economic program with little social unrest, Portugal is bringing down its chronic trade deficit and correcting some of its imbalances that have hindered its economic growth since the beginning of the millennium.

For international investors looking for a place to invest in Europe, Portugal offers several advantages, of which many investors are not aware.

Portugal is an ideal location for nearshoring industrial and services facilities because of its access to Europe’s 500 million consumers’ market and to the Portuguese-speaking world, which spreads across five continents: Europe, America, Africa, Asia and Oceania.

Here are seven reasons for international investors searching for the best location to access these markets to invest in Portugal:

1st Starting a business takes only a few days. According to the World Bank’s report “Doing Business 2015” (DB2015 Report), Portugal is in the first place of EU28 countries where it is easier to set up a business;

2nd Portugal has one of the most favourable business environments in the world. The DB2015 Report ranks Portugal in the top 25 of the world’s most attractive locations to do business and in 11th place out of EU28 countries;

3rd Trading across Portugal’s borders is easy. Portugal ranks in the top 29 countries in the world easier to trade with, according to the DB2015 Report. It takes 13 days to comply with import formalities and 15 for export formalities; Why

4th Portugal has one of the lowest levels of employment disputes in Europe. According to the European Industrial Relations Observatory (EIRO) and Eurostat the number of working days lost through industrial action per 1,000 employees (annual average 2005–2009) was 11.3 days in Portugal against an estimated 43.6 days in the EU15 countries;

5th The population educational level has improved substantially over time. According to the “Global Competitiveness Report 2014-2015” of the World Economic Forum (WEF Report), Portugal’s population education ranks in 29th place as a result of the improvement over time of Portugal’s education system. The WEF Report ranks Portugal in 11th place out in the EU28 countries and 24th place in the world on Higher Education training.

6th Portugal has state-of-the-art telecommunications networks and transport infrastructure. The WEF Report ranks Portugal’s infrastructure in 12th place in the world. According to the OECD statistics, Portugal has the fourth fastest broadband speed in the world and offers the 20th most competitive prices. Broadband Internet using fibre optic networks is spreading rapidly across the country. Portugal ranks in the top 20 countries in the world with more use of fibre optic technologies;

7th Portugal has a proven track record of successful foreign investments across a wide range of sectors. Well-structured investments in the country pay off. For instance, according to Grant Thornton Autoeuropa, the Volkswagen Portuguese auto plant, ranks in the top five best Volkswagen plants around the world. Autoeuropa is now Portugal’s second largest exporter, with sales that represent 1% of the Portuguese GDP and 10% of the national exports in 2013. Nokia Siemens Networks chose Portugal to install its new Global Networks Solutions Center.

This paper provides an overview of the opportunities and challenges of doing business in Portugal and reviews the main aspects to be considered by foreign investors considering Portugal as a place to invest as regards the setting up of a business, hiring employees, taxation and government incentives.

See pdf

Portugal has been in the news over the past year many times for many wrong reasons: the pressure of the Government debt, its high unemployment and the difficulties in bringing the budget deficit to 3% as agreed in the Memorandum of Understanding (MoU) between Portugal and the International Monetary Fund (IMF), the European Union (EU) and the European Central Bank (ECB).

Still Portugal has been implementing a harsh economic program with little social unrest and successfully bringing down its chronic trade deficit. Portugal offers several advantages for international investors looking for a place to invest in Europe, of which many are not aware.

Portugal is an ideal location for nearshoring industrial and services facilities because of its access to Europe’s 500 million consumers’ market and to the Portuguese-speaking world, which spreads across five continents: Europe, America, Africa, Asia and Oceania.

Here are seven reasons for international investors searching for the best location to access these markets to invest in Portugal:

1st Starting a business takes only a few days. According to the World Bank’s report “Doing Business 2014” (DB2014 Report), Portugal ranks in the top 5 EU27 countries where it is easier to set up a business;

2nd Portugal has one of the most favourable business environments in the world. The DB2014 Report ranks Portugal in the top 31 of the world’s most attractive locations to do business and in 12th place out of EU27 countries;

3rd Trading across Portugal’s borders is easy. Portugal ranks in the top 25 countries in the world easier to trade with, according to the DB2014 Report. It takes 13 days to comply with import formalities and 15 for export formalities;

4th Portugal has one of the lowest levels of employment disputes in Europe. According to European Industrial Relations Observatory (EIRO) and Eurostat the number of working days lost through industrial action per 1,000 employees (annual average 2005–2009) was 11.3 days in Portugal against an estimated 43.6 days in the EU15 countries;

5th The population educational level has improved substantially over time. According to the “Global Competitiveness Report 2013–2014” of the World Economic Forum (WEF Report), Portugal’s population education ranks in 26th place as a result of the improvement over time of Portugal’s education system. The Information Technology and Innovation Foundation (ITIF) ranks Portugal in 13th place on Higher Education R&D Performance as a Share of GDP in 2008;

6th Portugal has state-of-the-art telecommunications networks and transport infrastructure. The WEF Report ranks Portugal’s infrastructure in 11th place in the world. According to the OECD statistics, Portugal has the 4th fastest broadband speed in the world and offers the 12th most competitive prices. Broadband Internet using fibre optic networks is spreading rapidly across the country. Portugal is now ranked in the top 20 countries in the world with more use of fibre optic technologies; and

7th Portugal has a proven track record of successful foreign investments across a wide range of sectors. Well-structured investments in the country pay off. For instance, according to a study published by Grant Thornton Autoeuropa, the Volkswagen Portuguese autoplant, ranks in the top 5 best Volkswagen plants around the world. Autoeuropa is now Portugal’s second largest exporter, with sales to outside of Europe now representing 32% from 19% in 2011. Nokia Siemens Networks chose Portugal to install its new Global Networks Solutions Center.

This paper provides an overview of the opportunities and challenges of doing business in Portugal and reviews the main aspects to be considered by foreign investors considering Portugal as a place to invest as regards the setting up of a business, hiring employees, taxation and government incentives.