Startups in Portugal can now apply for status and take advantage of tax benefits – Business

Startups in Portugal can now officially request recognition of their status through the Startup Portugal website or on the e-Portugal platform, to become part of the official list of startups and benefit from a series of advantages tax and other support.

Application for startup status implies that companies fulfill a set of requirementsthat includes be an entity legally constituted in Portugal, be less than 10 years old, have less than 250 employees and less than 50 million in turnover, says a statement. The requirements also cover does not result from a split or transformation of a large company, does not have a majority stake in its capital of a large company.

Furthermoreit will have to be an innovative company with high growth potential that meets one of the following conditions: recognized by the ID seal awarded by ANI, having completed a round of venture capital financing, having received investment from Banco Português de Fomento or a business angel.

If they are more than 10 years old, have more than 250 employees or 50 million in turnover, entities can alternatively, apply for Scaleup status, if they are qualified to receive workers under the Tech Visa Program.

The recognition of startup and scaleup status “brings with it a series of tax benefits designed to boost the growth and establishment of innovative businesses, as well as attracting highly qualified labor”, the statement highlights. The new Tax Incentive for Scientific Research and Innovation (IFICI), which promotes the retention of talents and qualified labor, and the Tax Regime for Stock Options Planswhich was revised and now has a single effective rate of 14% in IRC, are examples.

“In addition to granting a series of advantages to these companies, the recognition of startup and scaleup status is a fundamental tool for mapping and accounting for the contribution of companies with high growth potential to the Portuguese economy, an important step in the design of public policies for the promotion of entrepreneurship in Portugal”.