Portugal 2030: Incentives for Research and Development (R&D)

The future is built with innovation, and innovation is created through Research and Development (R&D), startups, universities, SMEs, and large companies - they all contribute to shaping this future. Portugal 2030 is how the state support these efforts.

In the EU, Portugal is the 8th country that invests the least in R&D. In 2022, investment stood at only 0.74% of our GDP.

Putting this into perspective, this is 70% below the European Union average.

Even so, 2022 marked a record year for spending allocated to Research and Development in Portugal, with companies being the major contributors to this effort.

Let’s look at the 2022 R&D numbers in Portugal:

• Companies represented 62% of the total investment in R&D;

• Higher Education accounted for 31%;

• The State and Private Non-Profit Institutions (IPSFL) were responsible for 4% and 2%, respectively;

• The total number of people working in R&D activities in Portugal rose from 69,628 (FTE) in 2021 (+5%) to 74,025 in 2022 (+14.2%).

The country needs more R&D Centers

The Crucial Importance of R&D for Portugal’s Future

Research and development are key drivers for sustainable employment, growth, and investment. They are essential for ensuring the competitiveness of the country and companies in the national and global economy.

R&D also plays a critical role in developing new solutions to tackle climate change, fostering the circular economy, sustainable energies, and restoring land, oceans, and other habitats.

Fortunately, many Portuguese startups are taking the initiative to develop solutions in this area, such as these 17 Portuguese startups focused on sustainable innovation.

Portugal 2030: €101.5 Million for R&D Incentives for Companies

The Portugal 2030 incentives allocate more than €100 million to R&D.

These funds are intended to support expenses such as:

• Personnel costs for technical staff

• Purchase of raw materials

• Costs for prototype development

• Acquisition of technical equipment and software for research

• Participation in international events for study presentations

Portugal 2030 Support Lines

The Portugal 2030 incentives are divided into two lines:

1. SIID – Business R&D – Individual Operations – Low Density and Other Territories

   • Global Budget: €41 million

   • Maximum Incentive Rate: 80%

   • Objective: Creation of new products, processes, or systems, or improvement of existing ones

   • Suitable for: Individual research and development projects

   • Beneficiary Entities: SMEs and Small Mid Caps

   • Applicable Regions: North, Center, Lisbon, Alentejo, and Algarve

   • Applications: Opened in November 2023

   
   

2. SIID – Business R&D – Copromotion Operations – Low Density and Other Territories

   • Global Budget: €60.5 million

   • Maximum Incentive Rate: 80%

   • Objective: Creation of new products, processes, or systems, or improvement of existing ones

   • Suitable for: Companies involved in R&D activities in partnership with other entities

   • Beneficiary Entities: SMEs, Small Mid Caps, and Non-Business Entities in the R&I System (ENESII)

   • Applicable Regions: North, Center, Lisbon, Alentejo, Algarve, and the autonomous regions of the Azores and Madeira (the latter only for operations financed by the Innovation and Digital Transition Program)

   • Applications: Opened in November 2023

Support for Obtaining Portugal 2030 Incentives

Navigating the available information and dealing with bureaucracy can be overwhelming.

Lisboa Investments specializes in this type of process, making it simpler, more efficient and more likely to be approved.

We are here to help you create your next exciting venture in Portugal.

Together, we can make Portugal an entrepreneurial and innovative country!