Portugal offers national and foreign investors investment through 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.

The incentives may include:

• Incentives granted under the «Portugal 2030» programme established through an agreement with the EU covering the period from 2021 to 2027;
• Incentives granted under the «Recovery and Resilience Plan» (Plano de Resiliência e Recuperação, PRR) from 2021 to 2026;
• Tax incentives granted under the Tax Investment Code (Código Fiscal do Investimento), which aim to promote the competitiveness of the Portuguese economy; and
• Incentive programmes designed for specific situations, such as creating jobs, which may include temporary reductions of the employer’s social security contributions, financial support for hiring young people, unemployed, etc. and co-funding of training costs.

The Portuguese Government also set up a system for monitoring, facilitating and reducing bureaucracy in implementing projects considered to be of «potential national interest», the so-called «projetos de interesse nacional» or PIN projects.

«Portugal 2030» is an investment program amounting to 23 billion euros, which implements the Partnership Agreement signed between Portugal and the EU on 14 July 2022.

The main goals of this program 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.

These goals align with the four agendas of the 2030 Strategy:

• People First: Aiming for a better demographic balance, greater inclusion, and reduced inequality;

• Digitalization, innovation, and qualification;
• Climate transition and sustainability of resources; and
• Enhancing Portugal's international competitiveness and promoting social cohesion.

«Portugal 2030» is structured into twelve programs, which were approved in December 2022:

• Five regional programs corresponding to Intercity Communities and Metropolitan Areas (NUTS II), including separate ones for the Azores and Madeira;
• Four programs covering demographics, skills and inclusion, innovation and digital transition, climate action and sustainability, and the sea; and
• Programs for European Territorial Cooperation.

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.

As of mid-2024, Portugal 2030 allocated 35.7% of its available funds, approving 2,092 projects and issuing 554 calls for proposals. By 31 July, €8.209 billion out of a total €22.995 billion had been either awarded or were pending tenders. The program funding sources include the European Regional

Development Fund (ERDF) with 42%, the European Social Fund+ (ESF+) with 37%, and the Cohesion Fund with 17%. To date, 255 tenders have been closed, releasing over €4 billion in funding. 2,092 projects have been approved, with €2.381 billion in funds awarded and €715 million already executed. By the end of July 2024, Portugal 2030 had issued 554 calls for proposals, with €8.209 billion available for public tenders.

From September to December 2024, the release of 249 funding calls is planned, with a total budget of €2.6 billion. The announced priorities include calls focused on the Business Research, Development, and Innovation System (RDI), the expansion of the Porto metro, and funding for Professional Training Programs, among others.

You may learn more about Portugal 2030 at www.Portugal2030.pt.

The «Recovery and Resilience Plan» is a program approved by the European Commission for implementation in Portugal. It aims to restore sustainable economic growth and strengthen European convergence over the next decade. The PRR is funded by the European Union's "NextGenerationEU" initiative, with a total investment of €16,644 million covering the period from 2021 to 2026: €13,944 million in grants (84% of the total) and €2,700 million in loans (16%).

The main objectives of the PRR are:

• Resilience (61% of the PRR): This portion will be used to enhance economic recovery and improve the capacity to respond to future crises and challenges. It focuses on social, economic, and productive sectors and territorial resilience.
• Climate transition (21% of the PRR): This part aims to promote more sustainable resource use, boost renewable energy production, and support the decarbonization of the economy and society.
• Digital transition (18% of the PRR): This portion focuses on promoting digital inclusion through education and training in digital skills and facilitating the digital transformation of businesses and government operations.

These three key areas are implemented through 20 components, 37 reforms, and 83 investments, using a result-oriented approach based on milestones and targets.

Applications for PRR grants and loans are submitted via an online platform called "Recuperar Portugal," which simplifies the process. Implementing PRR measures or investments will be formalized through contracts between the Mission Unit "Recuperar Portugal" and direct or intermediary beneficiaries.

Relevant legislation

Investment Tax Code [Portuguese Only]

Decree-Law 76/2011 that creates the Projects of National Interest Support Mechanism [Portuguese Only]

Decree-Law 154/2013 that establishes a Permanent Commission for PIN Projects Investors Support [Portuguese Only]

Useful links

Portuguese Investment Agency (AICEP Portugal Global)

«Portugal 2020» Official Website

Important notice

This library includes standard forms, documents, copies of statutes of law and reports from national and international organisations and other resources intended for general informational and educational purposes only.

By using this library, you agree (i) that nothing in this library constitute or substitute legal or business advice, (ii) that the availability, transmission, receipt or use of this library is not intended and does not create an attorney-client relationship and (iii) to use the documents available in this site in compliance with all applicable laws. You should make sure that this library are not or have not become out-of-date by supervening laws or regulations or other events.

We are used to working on all aspects of corporate and commercial law. We act regularly in domestic and cross-border transactions, including mergers and acquisitions, financings and foreign investments.

We can assist you in:

• Negotiuating investment incentves
• State aid implications and approvals
• Setting up and registering a branch or a corporation
• Negotiating investment agreements

If you have any question or wish us to provide a budget, please contact us to: whyportugal@macedovitorino.com

For more information on our practices and expertise please go to www.macedovitorino.com/en/expertise