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Learn about the incentive amount, who are the beneficiaries and what are the limits of deduction to the taxable income.

IRC taxpayers are granted the following tax benefits:

  • Deduction to the IRC collection of the following amounts of the relevant applications:
    • In the case of investments made in the North, Centre, Alentejo, Autonomous Region of the Azores and Autonomous Region of Madeira, 25% of the relevant applications, for the investment made up to the amount of €5,000,000, and 10% of the relevant applications, regarding the exceeding part;
    • Construction, acquisition, repair and extension of any buildings, unless they are factory premises or used for tourism, audiovisual production and administrative activities;
    • In the case of investments in the Algarve and Greater Lisbon regions, 10% of the relevant applications.
  • Exemption or reduction of IMI, for a period of up to 10 years as from the year of acquisition or construction of the property, in respect of buildings used within the scope of the investments that constitute relevant applications;
  • Exemption or reduction of IMT in relation to the acquisition of buildings that constitute relevant investments;
  • Exemption from Stamp Duty on the acquisition of buildings which constitute relevant investments.


The RFAI is applicable to IRC taxpayers who exercise an activity inserted in the following codes of the Portuguese Classification of Economic Activities, Revision 3 (CAE-Rev.3):

  • Extractive industries – divisions 05 to 09
  • Manufacturing Industries – Divisions 10 to 33
  • Accommodation – Division 55
  • Restaurant and Similar Activities – Division 56
  • Publishing Activities – Division 58
  • Motion picture, video and television programme production activities – Group 591
  • Computer programming, consultancy and related activities – Division 62
  • Data processing, hosting and related activities and web portals – group 631
  • Scientific research and development activities – division 72
  • Activities of interest to tourism – subclasses 77210, 90040, 91041, 91042, 93110, 93210, 93292, 93293 and 96040
  • Administrative and business support service activities – classes 82110 and 82910




The deduction to the collection respects the following limits:

  • Up to the concurrence of the total IRC collection: in the case of investments made in the taxation period of the beginning of activity and in the two following taxation periods, except when the company results from demerger.
  • Up to 50% of the IRC assessment: in the remaining cases.


IRC taxpayers who cumulatively meet the following conditions may benefit from the tax incentives set out in this chapter:

  • They have properly organized accounting
  • Their taxable profit is not determined by indirect methods;
  • They keep in the company the assets object of the investment:
    • For a minimum period of three years, in the case of SMEs;
    • For five years in the remaining cases;
    • When shorter, during the respective minimum useful life period;
    • Until the period in which they are physically destroyed, dismantled, abandoned or unusable;
  • Do not owe the State and Social Security any contributions, taxes or dues, or have the payment of these duly ensured
  • Are not considered to be companies in difficulty in accordance with the Commission’s communication
  • Have made a relevant investment that allows for the creation of jobs and their maintenance until the end of the minimum maintenance period of the assets object of the investment.

Relevant investments

Tangible fixed assets, acquired in new condition, with the exception of:

  • Land, except in the case where it is intended for the exploitation of mineral concessions, natural and spring mineral waters, quarries, clay pits and sandpits in investments in the extractive industry;
  • Construction, acquisition, repair and extension of any buildings, unless they are factory premises or used for tourism, audiovisual production and administrative activities;
  • Light passenger or mixed vehicles;
  • Furniture and articles of comfort or decoration, except hotel equipment used for tourism activities;
  • Social equipments;
  • Other investment goods that are not allocated to the company’s operation.

Intangible assets, composed of expenses with technology transfer, namely through the acquisition of patent rights, licenses, “know-how” or technical knowledge not protected by patent, which cannot exceed 50% of the relevant applications, in the case of IRC taxpayers that do not fall into the category of micro, small and medium-sized enterprises.


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