Portugal updates R&D incentives and launches Alentejo funding

Portugal is implementing changes to its research and development (R&D) incentive frameworks. Under the Alentejo 2030 regional program, a new 5 million euro contest has been opened to support business R&D projects in the Alentejo Litoral territory. This funding, provided by the Just Transition Fund, aims to promote innovation and climate/energy transitions in the agri-food, renewable energy, and tourism sectors. Small and medium-sized enterprises (SMEs) and scientific entities can apply for co-financing that covers up to 80% of eligible investments, with applications open until December 2026.

Simultaneously, legislative changes are affecting the SIFIDE (System of Tax Incentives for Business Research and Development). While the indirect modality of SIFIDE II, which allows contributions to investment funds, is ending for new contributions, the direct SIFIDE regime has been extended through the end of 2026. A transitional regime has been established to ensure that capital already invested in SIFIDE funds reaches companies and R&D projects effectively.