Oporto: Incentives for corporate investment

On April 1, 2024, Regulation 371/2024 was published in the Official Gazette, Series 2, amending the Municipality of Porto’s Tax Exemption Regulation.

Objectives

To attract national and international investment that promotes development and job creation in the Municipality of Porto, a chapter dedicated to Incentives for Corporate Investment has been added to the above regulation.

The Municipality of Porto intends for these Incentives for Corporate Investment to be used as tools for business empowerment and for local job creation, with the goal of acting as a significant driver of innovation, competitiveness, and economic growth.

Therefore, this amendment to the Municipality of Porto’s Tax Exemption Regulation provides for exemptions in terms of:

• municipal property tax (IMI);
• municipal property transfer tax (IMT); and
• municipal surcharge (Derrama).

Which entities and projects can benefit from these exemptions?

These exemptions apply to taxpayers that own investment projects carried out in the Municipality of Porto whose main investments are equal to or greater than €3 million or result in the net creation of at least 30 jobs in the Municipality of Porto, at least 50% of which are qualified or highly qualified jobs, until the end of the benefit period.

These investment projects must fall within the following areas: (i) health and life sciences; (ii) mobility, energy and environment; (iii) blue economy; (iv) ICT and service centers; (v) culture and creative industries; and (vi) sustainable construction.

To benefit from these exemptions, taxpayers must comply with the conditions required by the regulation and submit their exemption requests accordingly.