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 the investment performed in non-current assets (tangible and intangible) from the taxable income assessed.


  • Beneficiaries
    The RFAI applies to the corporate taxpayers (IRC in Portuguese) who carry out activities in the following areas:
    • Extractive and transforming industries;
    • Tourism;
    • Computer technology activities and associated services;
    • Agricultural, piscicultural, stock-rearing and forestry activities;
    • Research and development and high-intensity technology activities;
    • Information technology and audiovisual and multimedia production;
    • Defence, environment, energy and telecommunications;
    • Activities related to shared services centres.
  • Requirements
    The IRC taxpayers that fulfil all the following conditions, in a cumulative way, are entitled to benefit from this tax aid:
    • Regular accounting records, according to accounting standards;
    • Taxable income not determined by indirect methods;
    • Assets concerned by the investment remain in the company:
      • For at least three years, where taxable persons are 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 operating life of the asset;
      • For the remaining useful life until the destruction, abandonment or dismantlement of the asset;
    • Not being liable to the State or to the Social Security for any contributions or taxes, or having the payment of debts duly ensured;
    • Not constituting firms in difficulty, for the purposes of the Communication from the European Commission;
    • Making relevant investment intended for job creation and its maintenance up to the end of the deduction period of the goods concerned by the investment.
  • Relevant Applications
    Investment in tangible fixed assets, purchased in new condition, except for:
    • Land, except where it is intended for the commercial operation of mining concessions, mineral and spring waters, quarries, clay or sand pits in mining projects;
    • Construction, purchase, repair or extension of any facilities, except where these are factories or intended for administrative activities;
    • Passenger or mixed-use motor vehicles;
    • Furniture and comfort or decoration items, except for hotel equipment intended for tourism activities;
    • Social equipment;
    • Other investment assets which are not directly and essentially associated to the productive activity pursued by the company.

    Investment in intangible fixed assets, covering expenses with technology transfer, namely acquisition of patent rights, licenses, know-how or technical knowledge outside the scope of the patent. Where IRC taxpayers are not included in the category of micro, small and medium-sized enterprises, investment expenses shall not exceed 50% of relevant applications.
  • Benefits
    IRC taxpayers who satisfy all the following conditions are entitled to the following tax benefits:
    1. Deduction to IRC income tax of the following amounts in the scope of the relevant applications:
      • Made in regions eligible for support in the scope of regional aid – Norte, Centro, Alentejo, Autonomous Regions of Azores and Madeira; in this case, 25% of the relevant applications, for investments up to EUR 5.000.000, and 10% of the relevant investment, for investments exceeding EUR 5.000.000;
      • Construction, purchase, repair or extension of any facilities, except where these are factories or intended for tourism, audiovisual production or administrative activities;
      • Made on the Algarve and Grande Lisboa regions; in this case, 10% of the relevant applications.
    2. IMI (Municipal Property Tax) exemption or reduction for a period not exceeding ten years as from the purchase or construction, regarding owned property that constitute relevant investment applications;
    3. IMT (Property Transfer Tax) exemption or reduction, regarding purchases of property that constitute relevant investment applications;
    4. Stamp Duty exemption, regarding purchases of property that constitute relevant investment applications.
  • Maximum Deduction Limits
    The limits to the deduction from IRC collection are as follows:
    • Capped at up to the total of the corporate income tax: in the case of investments made within the tax period corresponding to the beginning of activity and within the two following years, except if the company results from a splitting process.
    • Capped at up to 50% of the corporate income tax: in the remaining situations.
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