Invest In Portugal

The government of Portugal has gone great lengths to attract foreign investment with tax incentives for investments in certain sectors under certain circumstances.

Corporate tax rates have been reduced and tax credits of up to 25% are now offered for incoming investments depending on the location, the number of jobs created, and the degree of technological innovation involved.

There also is a 10-year exemption from property tax and an exemption from stamp tax for new investments in Portugal.

Local government authorities also sometimes offer additional incentives for job-creating initiatives.

Other measures implemented by the federal government to help draw investment include easing some labor regulations to increase workplace flexibility and creating a special aid regime for large products.

To combat the perception of a cumbersome regulatory climate, the Government has created a “Cutting Red Tape” website containing information on measures taken since 2005 to reduce bureaucracy and another website, the “Empresa na Hora,” which allows for companies to incorporate in less than an hour.

As a member of the EU, Portugal is also eligible for Structural and Investment Funds of approximately 21 billion euros between 2014 and 2020.

Much of the funding is earmarked for rural and less-developed areas and youth employment initiatives.

Priorities for the funding include improving entrepreneurship and business innovation (especially e-commerce), stimulating the transfer of research and development knowledge between universities and businesses, and improving the production of tradable goods and services.