This Programme aims to stimulate investment by individuals in Start-ups. It consists of a deduction of 25% of the investment – not exceeding €100,000.00 –, up to a limit of 40% of the Personal Income Tax (IRS) tax due. Amounts exceeding this limit may be deducted, under the same conditions, in the two subsequent taxation periods.
Capital gains resulting from the disposal of shares that correspond to eligible investments that have benefited from the abovementioned deduction – provided they’ve been held for at least 48 months – are excluded from IRS if the taxpayer reinvests the totality of the proceeds in eligible investments, in the year of the sale or in subsequent years.
Capital gains resulting from the disposal of shares that correspond to eligible investments that have benefited from the abovementioned deduction – provided they’ve been held for at least 48 months – are excluded from IRS if the taxpayer reinvests the totality of the proceeds in eligible investments, in the year of the sale or in subsequent years.
Requirements
This regime applies to contributions in cash paid in connection with the subscription of shares in companies, provided the latter meet all of the following requirements:
- Have a maximum of 20 employees;
- Do not hold assets and rights over real estate whose value exceeds € 200,000.00;
- Are not listed in a regulated or non-regulated stock exchange;
- Have their respective tax situation in good order;
- Are certified by the National Network of Incubators (Rede Nacional de Incubadoras – RNI).
Additionally, investments are considered eligible if they consist in cash contributions paid for consideration of the subscription of shares, provided that:
- They exceed € 10,000 per shareholding of micro or small enterprises that have not been incorporated for more than five years;
- The shareholding held by the subscriber, after subscription and during the subsequent three years, does not correspond to more than 30% of the company's capital or voting rights and is maintained for at least 48 months;
- The percentage of capital and voting rights held by companies and other legal entities, either at the time of subscription or in the preceding three years, is less than 50%;
- The contributions are effectively used, until the end of the third tax period after the subscription, in the following ways: R&D expenses, acquisition of intangible assets, and acquisition of tangible fixed assets (with the exception of land, buildings, light passenger or mixed vehicles, furniture and social equipment).
How to obtain
It is necessary for companies to apply for the Seed Startup certification.