Tax Incentives

Companies can benefit from tax incentives for productive investments:
Tax benefits schemes are characterized by the reduction or exemption of payment of taxes, such as Property Tax ("IMI"), Property Transfer Tax ("IMT") and Stamp Duty, as well as the reduction of the Corporate Income Tax ("IRC"). In general, these national schemes provide more favourable conditions to investments located in the Northern Region than elsewhere.

Individual investors and professionals can also benefit from the Non-Habitual Resident Tax Regime, which provides very advantageous personal income tax ("IRS") conditions.
 
Special Tax Regime to Support Investment (RFAI)
The special investment support scheme is a tax benefit approved by the Decree-Law No. 162/2014 of 31 October, which entitles companies to deduct a share of investments performed in non-current assets (tangible and intangible) from the taxable corporate income.
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Tax Incentives Scheme for Business Research and Development (SIFIDE II)
The Tax Incentives Scheme for Business Research and Development II, in force from 2013 to 2020, aims to support research and development activities related to the creation or improvement of a product, a process, a program or an equipment which present a substantial improvement and that do not result only from a simple use of the current state of existing techniques.
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Tax Benefits for the Reinvestment of Retained Earnings (DLRR)
The reinvestment of retained earnings (Portuguese acronym "DLRR") is a tax incentive for micro, small and medium-sized companies that allows a IRC tax deduction of the retained and reinvested earnings used for the acquisition of relevant applications.
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Contractual Tax Benefits for Productive Investment
Contractual tax benefits for investments of at least 3 million euros in productive assets. These benefits are individually negotiated with Portuguese national authorities and are granted for up to 10 years.
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Non-Habitual Resident Tax Regime For Foreign Citizens
The Non-Habitual Resident Tax Regime is a measure implemented by the Portuguese State to attract highly qualified professionals and high net worth individuals from abroad by providing them with one of the most attractive personal income tax regimes in the European Union.
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The regime applies to individuals who become Portuguese tax residents in a certain year and have not qualified as tax residents in Portugal in any of the previous five years.

Non habitual residents will be subject to a flat 20% personal income tax rate (Portuguese acronym "IRS") on employment or self-employment income of Portuguese source.

For further details please refer to page 16 of the Portuguese Tax Authority’s guide on tax incentives in Portugal.
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