Portugal Investment Immigration News: According to the Portuguese Agency for Investment and Foreign Trade on the 19th, the Council of Ministers recently approved a new investment tax law. This is another new preferential tax policy following the reform of the corporate income tax system by the Portuguese government. The aim is to strengthen support for corporate investment, particularly by encouraging investment in underdeveloped inland regions and the creation of sustainable jobs, reinforcing the capital structure of companies, promoting sustainable economic growth, and creating more employment opportunities. The new investment tax law has also been amended to comply with the new European legal framework for the 2014-2020 period.
Regarding productive investment, there are two main preferential policies:
1. Contractual tax incentives
Corporate income tax credits can reach up to 25%;
A 10% tax deduction can be obtained for investments in underdeveloped inland regions;
A 8% tax deduction can be obtained for investments that create sustainable long-term jobs;
A 6% tax deduction can be obtained for investment projects in technological innovation and environmental protection.
2. Improvements to the terms of the RFAI (Tax Regime for Investment Support) measures - investments of up to 5 million Euros can receive a tax deduction of up to 25%; for investments exceeding 5 million Euros, a 10% deduction can be applied to the surplus;
Newly established companies enjoy tax incentives to encourage entrepreneurship, innovation, and the exploration of new businesses;
If the start-up is not profitable in its first three years, the investment amount can be deducted from the corporate income tax base over the next 10 years.
