RFAI – Tax Regime for Investment Support

The Investment Support Tax Regime is a tax benefit, provided by Decree-Law No. 162/2014 of October 31, which allows companies to deduct from the collected collection a percentage of the investment made in non-current assets (tangible and intangible).

What are the prerequisites for obtaining RFAI?

IRC taxpayers who have all of the following characteristics can benefit from tax incentives:

  • Regularly organized accounting;
  • Your taxable income is determined directly;
  • Maintain in the company the goods subject to investment:

• For a minimum period of three years in the case of SMEs, or five years in other cases

• When lower, during the respective minimum period of useful life and until the period in which their physical slaughter, dismantling, abandonment or destruction occurs;

  • Are not debtors to the State and Social Security of any contributions, taxes or contributions, or have the payment of these debts duly assured;
  • Are not considered as undertakings in difficulty under the terms of the Commission communication;
  • Make a relevant investment that provides the creation of jobs and their maintenance until the end of the minimum period of maintenance of the assets subject to investment.
What are the beneficiaries?

Passive IRC subjects who carry out an activity in the following sectors:

  • Computer activities and services;
  • Tourism;
  • Extractive industry and manufacturing;
  • Activities of shared service centers;
  • Agriculture, aquaculture, fisheries, agro-livestock and forestry;
  • Activities Research & Development and technology – intensive;
  • Information technologies and audiovisual and multimedia production;
  • Defense, environment, energy and telecommunications.
Relevant Investments

Tangible fixed assets, acquired in new condition, except for:

  • Land, except for the exploitation of mineral concessions, natural and spring mineral waters, quarries, barriers and sands in investments in the extractive industry;
  • Construction, acquisition, repair and expansion of any buildings, except if they are manufacturing facilities or related to tourist activities, audiovisual and administrative production;
  • Light passenger or mixed vehicles;
  • Furniture and articles of comfort or decoration, except hotel equipment for tourist use;
  • Social services;
  • Other investment goods that are not related to the operation of the company.

Intangible assets consist of expenses for technology transfer, including through the acquisition of patent rights, licenses, “know-how” or technical knowledge not protected by patent.

Incentive and limits the deduction to the collection

The following tax benefits are granted:

  • Deduction to IRC collection the following investments:

• If 25% of the relevant investments are invested in the North, Center, Alentejo, Autonomous Region of the Azores and Autonomous Region of Madeira regions, for investment up to 5,000,000 € and 10% of the relevant applications, in relation to surplus part;

• Construction, acquisition, repair and expansion of any buildings, except if they are manufacturing facilities or affects to tourist activities, of audiovisual and administrative production;

• In the case of investments in the Algarve and Greater Lisbon regions, 10% of the relevant applications.

  • Exemption or reduction of IMI, for a period up to 10 years from the year of acquisition or construction of the property, in relation to the buildings used in the investments that constitute relevant applications;
  • Exemption or reduction of the IMT in respect of purchases of buildings constituting relevant applications;
  • Exemption from Stamp Duty on acquisitions of buildings that constitute relevant applications.


RFAI is limited to:

  • Up to competition of total IRC collection: in the case of investments made in the taxation period of the start of business and in the following two taxation periods, except when the company results from a spin-off;
  • Until the competition of 50% of the IRC collection: in all other cases.


The tax deduction is made in the IRC settlement of the tax period in which the relevant applications are made. When it can not be effected in full, due to insufficient collection, it can be done in the liquidations related to the following ten periods, with the limits stated above.


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