This incentive system aims to promote changes in the specialization profile of the regional economy and strengthen its external competitiveness by improving companies' production capacities, increasing business investment in the development of innovative and sustainable solutions, particularly based on R&D results and increasing qualified employment.

The entities benefiting from the incentives are companies of any nature and under any legal form, including SMEs and Non-SMEs.

Operations of an innovative nature that result in the production of tradable and/or internationalizable goods and services with high added value and a level of national incorporation, which correspond to an initial investment, are eligible for financing, namely:

• The creation of a new establishment;
• The increase in the capacity of an existing establishment, with this increase corresponding to at least 20% of the installed capacity in relation to the pre-operation year.
• The diversification of an establishment's production to products not previously produced in the establishment;
• The fundamental alteration of the overall production process of an existing establishment.

Financing rates:
The incentive to be granted is calculated by applying a base rate of 25% to eligible expenses, which may be increased by the following increases:

• 10% for operations presented by SMEs;
• 5% for operations aimed at creating qualified employment;
• 5% for operations located in the municipalities of Porto Moniz, São Vicente, Santana and Porto Santo.

Eligible costs:

• Tangible assets, including the acquisition of machinery and equipment, costs directly attributable to placing them in the location and conditions necessary for their operation, as well as the acquisition of computer equipment, including the software necessary for their operation;
• Intangible assets, including technology transfer through the acquisition of national and international patent rights, licenses, technical knowledge not protected by patent, and standard software or software developed specifically for a specific purpose;
• Other investment expenditure, including expenditure on the intervention of certified accountants or statutory auditors in validating expenditure on payment requests; engineering services; studies, diagnostics, audits; studies or reports in the context of aligning the operation with the “Do No Significant Harm” Principle; marketing plans; architectural and engineering projects and services.

In the case of operations in the tourism sector, in duly justified cases within the scope of the exercise of the respective tourism activity, vehicles that constitute the tourism activity itself to be developed may be eligible, provided that they are directly related to the exercise of that activity and are not powered by fossil fuels.

Specific rules or limits on expense eligibility (Where applicable)

• Operations eligible for support must present a minimum total eligible expenditure of 50,000 euros.
• This Notice does not cover the eligibility of investments with any costs incurred prior to the date of application.
• “Other investment expenses” cannot exceed 20% of the total eligible expenses of the operation.
• The costs of the intervention of certified accountants or statutory auditors, in validating the expenditure of payment requests, may not exceed 5,000 euros.
• The costs of carrying out studies or reports as part of aligning the operation with the “Do No Significant Harm” Principle may not exceed EUR 5,000.
• The costs of building construction, renovation work and other construction work may not exceed the following limits:
  • Operations within business parks and Business Reception Areas and operations located in the municipalities of São Vicente, Santana, Porto Moniz and Porto Santo: 60% of the total eligible expenses of the operation;
  • Tourism sector operations: 40% of the total eligible expenses of the operation;
  • Tourism sector operations: 40% of the total eligible expenses of the operation;

For further information, see here.