Corporate Tax Benefits in Portugal 2026
In 2026 the main tax benefits for companies in Portugal are RFAI (a 30% credit on productive investment in "a" regions), SIFIDE II (32.5% of R&D expenses plus 50% of the increase), ICE (a capitalisation deduction that replaced the DLRR), IP Box (50% of patent and software income excluded) and contractual benefits for large investment projects.
Most companies don't use the benefits they're entitled to
The standard corporate tax (IRC) rate in 2026 is 19%, with a reduced 15% rate on the first €50,000 of taxable income for SMEs (art. 87 of the Corporate Tax Code and art. 3 of Law 64/2025). On top of that, several regimes can further reduce the bill, but most companies don't claim them. Most of these benefits do not require a competitive application: they are claimed directly in the corporate tax return (Modelo 22), provided the company keeps a proper supporting file. The difficulty is rarely the paperwork — it is knowing which regime fits each investment, expense or capital movement, and applying it correctly.
Regimes in force (2026)
- RFAI (arts. 22–26 of the Tax Investment Code, CFI). Corporate tax credit for productive investment: 30% of investment up to €15,000,000 and 10% above that in regions under art. 107(3)(a) TFEU (Norte, Centro, Alentejo, Azores and Madeira), and 10% in the eligible parts of art. 107(3)(c) regions (art. 23(1) CFI). As a rule the credit is capped at 50% of each year's tax liability, with any excess carried forward for 10 years (art. 23(2) and (3)). RFAI guide.
- SIFIDE II (arts. 35–42 CFI). Corporate tax credit for research and development: a 32.5% base rate plus a 50% incremental rate on the increase over the previous two-year average, the incremental part capped at €1,500,000; SMEs that have not yet completed two financial years get a 15% uplift on the base rate (art. 38). SIFIDE II guide.
- ICE (art. 43-D of the Tax Benefits Statute, EBF). Incentivo à Capitalização de Empresas: a deduction from taxable profit equal to the average 12-month Euribor plus 2 percentage points, applied to net increases in eligible equity, capped each year at the higher of €4,000,000 or 30% of tax EBITDA. Created by the 2023 State Budget (Law 24-D/2022), it replaced the former DLRR. ICE guide.
- IP Box (art. 50-A of the Corporate Tax Code). Income from patents, industrial designs and copyright on software counts towards taxable profit at only 50% of its value.
- Contractual investment benefits (arts. 15–21 CFI). A tax credit negotiated case by case with the State for large investment projects over €3,000,000.
The regimes at a glance
| Regime | Benefit | How much (2026) | For whom | Legal basis |
|---|---|---|---|---|
| RFAI | Corporate tax credit for productive investment | 30% ("a" regions) / 10% ("c" regions), up to 50% of tax liability | Invest in productive assets | Arts. 22–26 CFI |
| SIFIDE II | Corporate tax credit for R&D expenses | 32.5% base + 50% incremental | Carry out R&D | Arts. 35–42 CFI |
| ICE | Deduction for net equity increases | 12-month Euribor + 2 pp on the net increase | Capitalise or retain profits | Art. 43-D EBF |
| IP Box | Partial exemption on IP income | 50% exclusion of eligible income | Own patents or proprietary software | Art. 50-A of the Corporate Tax Code |
| Contractual benefits | Negotiated tax credit | Case by case | Large projects (> €3M) | Arts. 15–21 CFI |
Indicative summary for 2026. Rates, limits and eligibility depend on each company's situation — confirm with a certified accountant before claiming.
Which one applies to my company?
- Invests in equipment or productive assets → RFAI
- Carries out R&D → SIFIDE II
- Capitalises or retains profits → ICE
- Owns patents or proprietary software → IP Box
- Has a large investment project → contractual benefits
Note: the DLRR was replaced by the ICE and the special payment on account (PEC) was abolished by Law 12/2022 — do not confuse them with the regimes currently in force.
A worked example (RFAI)
An SME in the Norte region (an "a" region) that invests €200,000 in a new production line can deduct 30% — €60,000 — against its corporate tax liability, up to the limit of 50% of that year's liability, carrying forward any excess for up to 10 years. If that company also runs an R&D project, the related expenses may additionally qualify under SIFIDE II — a separate credit on a different cost base. Illustrative figures only: actual eligibility and amounts depend on the region, the type of asset and the company's tax position.
Related obligations
Tax benefits go hand in hand with your company's corporate tax obligations: corporate tax payments on account, the IES due by 15 July and the payments on account simulator. For an analysis of your case, talk to HVR.
Frequently asked questions — tax benefits for companies
What tax benefits exist for companies in 2026?
The main regimes in force in 2026 are RFAI (corporate tax credit for productive investment), SIFIDE II (credit for R&D expenses), ICE (deduction for net equity increases), IP Box (partial exemption on patent and software income) and contractual investment benefits for large projects. Which one applies depends on the type of investment or activity of each company.
Can RFAI and SIFIDE be combined?
It depends on the investments and expenses involved. RFAI is based on productive investment and SIFIDE on R&D expenses, so they may apply to different items — but accumulation is subject to specific rules and limits. We recommend a case-by-case analysis before assuming both apply.
Can several benefits be accumulated?
Yes, and in most cases it is desirable. The golden rule is that there can be no double funding of the same expense. Because each regime applies to different items — RFAI to productive investment, SIFIDE to R&D expenses, ICE to equity — it is often possible to combine more than one in the same tax year, provided they are correctly segregated in the tax file.
Does the DLRR still exist?
No. The DLRR (Dedução por Lucros Retidos e Reinvestidos) was replaced by the ICE — Incentivo à Capitalização de Empresas. Companies should use the ICE rules, not the former DLRR.
How do I know which benefits my company is entitled to?
Through an eligibility diagnosis: we review your investments, activity and accounts to identify which regimes apply. HVR offers a free initial diagnosis for companies.
Who handles the tax framing?
A certified accountant frames and applies these benefits in the corporate tax return (Modelo 22) and supporting files. HVR's team handles the full process for companies.