Sistema de Incentivos de Base Territorial - Inovação e modernização para o aumento da produção e Criação de novas empresas e negócios

The main goal of this opportunity is to support innovation and modernization projects that help increase production and encourage the creation of new businesses in the Algarve region. It targets micro and small enterprises involved in creating, expanding, or modernizing their businesses within strategic sectors such as the Economy of the Sea, Endogenous Terrestrial Resources, Cultural and Creative Industries, Health and Well-being, Environmental Sustainability, Digitalization, and ICT. The initiative aims to diversify the regional economy, promote sustainable growth, and boost competitiveness. All supported projects must be physically located within the Algarve (NUTS II) area.

• Applicants must be micro or small enterprises.
• Projects must be physically located in the Algarve region (NUTS II), not in virtual rental spaces.
• Eligible projects include the creation, expansion, or modernization of businesses within the specified strategic domains.
• The minimum eligible investment is €25,000.
• At least one remunerated job (full-time equivalent) must be associated with the business in the Algarve at application.
• Projects must align with regional strategic priorities and comply with financial, legal, and operational requirements.

Example Projects:

• A new microbrewery in the Algarve investing in advanced brewing equipment and digital sales tools.
• An existing small company in the "Economy of the Sea" sector expanding its operations with new machinery and hiring additional staff.
• A creative studio modernizing its facilities and software to develop digital content for cultural tourism.

• Purchase of machinery, equipment, and IT systems (including software)
• Acquisition of intangible assets (patents, licenses, technical knowledge, specialized software)
• Studies, diagnostics, audits, marketing plans, and architectural/engineering services
• Participation in international fairs and exhibitions (space rental, stand construction, operation)
• Specialized consultancy services (excluding routine activities)
• Certification costs for products, processes, or services
• Costs for designing and registering new brands
• Construction, remodeling, and justified building-related expenses
• Indirect costs at a fixed rate of 7% of eligible direct costs
• International travel costs based on distance

All expenses must be directly related to the project, justified, and comply with market conditions. Recoverable VAT and intermediary fees based on co-financed amounts are not eligible. Costs for certified accountants or auditors validating payment requests are capped at €5,000.

• Total indicative funding available: €5,000,000.00
• Co-financing rate: Up to 60% of eligible operations
• Minimum eligible investment per project: €25,000
• Maximum eligible investement per project: €200,000
• Indirect costs: Fixed rate of 7% applied to eligible direct costs

• The applicant must be a micro or small enterprise
• Must have the financial resources to execute the project
• Must present an eligible investment of at least €25,000
• At least one full-time remunerated job must be associated with the business in the Algarve at application
• Must provide a self-assessment of compliance with the "Do No Significant Harm" principle
• If contributing to RIS3, must justify alignment with transformative actions in strategic domains
• Activities must comply with de minimis aid rules
• Must be legally constituted, have regularized tax and social security status, and demonstrate financial stability