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Tax benefits for companies

Tax Regime for Investment Support (RFAI)

Deduction to the Corporate Income Tax (IRC) due* of a percentage of the investment in eligible assets: for investments made in Porto, 25% of the relevant applications, for an investment of up to € 15.000.000, and 10% of the relevant applications, for the exceeding part.

Exemption or reduction of IMI - for a period of up to 10 years as from the purchase or construction of the property -, IMT and IS in respect of buildings used for investments that constitute relevant applications.

Relevant applications include:
  • New tangible fixed assets, except:
    • Land (except where it is intended for the exploration of mining concessions, mineral and spring waters, quarries, clay or sand pits in mining projects);
    • Construction, acquisition, repair and extension of any buildings (except where these are factories or intended for touristic, audiovisual production, and administrative activities);
    • Light passenger or mixed use vehicles;
    • Furniture and comfort or decoration items, except hotel equipment used to tourist exploitation;
    • Social equipments;
    • Other investment assets, which are not assigned to the productive activity of the company.

  • Investments in intangible assets, covering expenses with technology transfer, namely acquisition of patent rights, licenses, know-how or technical knowledge outside the scope of the patent are also eligible (in the case of large enterprises these investiment may not exceed 50% of the relevant applications).

* The deduction from tax due has the following limits: (i) up to the total IRC due, in the case of investments made in the taxable year of the beginning of activity and in the two following taxable years, except when the company results from a demerger; (ii) up to 50% of the IRC due, in the remaining cases.

Requirements

  • Have organised accounting records;

  • Taxable profit not being determined by indirect methods;

  • Keeping the eligible investment assets:
    • For at least three years in the case of Small and Medium-Sized Enterprises (SMEs);
    • For at least five years in all other cases;
    • In the case of shorter periods of time, for the minimum period corresponding to the useful life of the asset;
    • Until the year where they are destroyed, dismantled or abandoned.

  • Having the tax and social security situation in due order;

  • Not being considered a "company in difficulty” under the terms defined by the applicable law;

  • Make investments creating new jobs and maintaining them up to the end of the minimum holding period for the eligible investment assets;

  • Exercise an activity in one of the following sectors:
    • Extractive industry - divisions 05 to 09;
    • Manufacturing industry - divisions 10 to 33;
    • Hospitality - division 55;
    • Catering and similar - division 56;
    • Editing activities - division 58;
    • Film, video and television program production activities - group 591;
    • Consulting and computer programming and related activities - division 62;
    • Data processing activities, information hosting and related activities and web portals - group 631;
    • Scientific research and development activities - division 72;
    • Activities of interest to tourism - subclasses 77210, 90040, 91041, 91042, 93110, 93210, 93292, 93293, 96040;
    • Administrative and support service activities provided to companies - classes 82110, 82910.