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SIFIDE II
Turn R&D into tax savings
See how your company can use Portugal’s business R&D tax incentive and recover up to 82.5% of R&D investment.
Understanding SIFIDE II
SIFIDE II (the business research and development tax incentive) is Portugal’s main tax support for R&D. It was created to raise company competitiveness and lets firms recover a significant share of research and development spending as a deduction from corporate income tax.
The benefit is not only for large laboratories or technology companies. Any company, whatever its size or sector, can apply if it has carried out R&D aimed at new products, services or processes, or at a substantial improvement of existing ones.
How does the tax credit work?
The support is calculated with two rates:
- Base rate: 32.5% of eligible costs in the application year.
- Incremental rate: 50% of the increase over the average of the two previous years, up to €1.5 million.
If corporate tax is not enough to use the full benefit, SIFIDE allows a 12-year carry-forward, so the incentive is not lost. Certification by ANI (the National Innovation Agency) confirms that the project is technically eligible.
Eligible costs and advantages
Up to 82.5% tax benefit
Recover a significant share of R&D investment through a tax credit or a deduction from corporate income tax.
Uplifted costs
Higher incremental rates when R&D investment grows compared with previous years.
12-year carry-forward
Costs you cannot deduct can be carried forward for the next 12 tax years.
Uplifts for PhD staff and eco-design
Costs of staff with a PhD are uplifted by 20% in the eligible base. Eco-design projects receive an extra uplift on the incremental rate.
Legal certainty
An incentive that has existed for more than 25 years, with a clear legal framework.
R&D staff
Costs of staff directly involved in R&D, with an uplift for PhDs.
Contracted R&D
Costs of contracting R&D from recognised competent entities.
Patent acquisition
Costs of acquiring patents used to carry out R&D.
R&D equipment
Machinery, equipment and other tangible assets used in R&D.
Learn more about SIFIDE
SIFIDE - O que é e como funciona
SIFIDE - Benefícios fiscais para I&D
SIFIDE - Processo de candidatura
SIFIDE - Casos de sucesso
SIFIDE - Incentivo fiscal à I&D
Questions about SIFIDE
Need help with a SIFIDE application?
Our specialists can review your company’s R&D activities and help you claim the full tax benefit.
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