RFAI 2024

The tax incentive aims to support businesses in Portugal by encouraging investment in key sectors. This initiative focuses on enhancing economic growth, creating jobs, and boosting technological innovation.

Types of Projects to Develop

• Creating new business establishments
• Expanding the capacity of existing businesses
• Diversifying production lines in existing establishments

Eligibility Criteria

• Businesses must engage in economic activities such as manufacturing, tourism, and data processing
• Companies are expected to retain the invested assets for a minimum period (3 years for small businesses, 5 years for others) and create jobs.
• Businesses must be financially stable and not owe taxes

Eligible Expenses

• Investment in new tangible assets like machinery and buildings related to the business
• Acquisition of technology, including patents and licenses
• Initial investments for creating or modifying production processes

Examples of Eligible Projects to Be Developed

• Establishing a new software development center
• Expanding an existing factory to increase production capacity
• Introducing new manufacturing lines to produce electronic goods

Financial Information

• Maximum Incentive: Deduction of up to 30% of investment from taxable income until €10 million, with options for higher deductions for larger investments
• Maximum Time to Use the Incentive: Up to 10 years