What are the main corporate tax benefits in Portugal in 2026?

The five regimes with the largest impact are RFAI (up to 25% deduction on productive investment), SIFIDE (up to 82.5% tax credit on R&D), ICE (capitalisation incentive, 4.5% deduction on equity increases), IFICI (successor to NHR for qualified professionals) and IP Box (50% deduction on patent/software income).

Can an SME combine RFAI and SIFIDE in the same year?

Yes. RFAI and SIFIDE are cumulative provided the eligible costs do not overlap (a single invoice cannot be declared under both). RFAI covers productive investment (equipment, buildings); SIFIDE covers R&D (technical staff, trials, patents). Industrial and software companies often combine both.

What documentation must I keep to defend a tax benefit in audit?

Each regime requires its own dossier: (a) project description, (b) eligible-cost schedule with invoices, (c) payment proofs, (d) tax and social-security clearance certificates, (e) evidence of job creation/retention (RFAI). Retain for 10 years. Without a dossier, the Tax Authority will disallow the benefit on inspection.

Is DLRR still in force in 2026?

No. DLRR (deduction for retained and reinvested profits) was repealed and replaced by ICE (Incentive for Capitalisation of Enterprises) from 2024. ICE allows a 4.5% deduction on the net increase of equity against the IRC taxable base, for 10 years.

Corporate Tax Benefits in Portugal 2026

The five corporate tax benefits that move the most tax in Portugal 2026 are RFAI (up to 25% deduction on productive investment), SIFIDE (up to 82.5% R&D tax credit), ICE (4.5% on equity increases — replaces DLRR), IFICI (successor to NHR for qualified professionals) and IP Box (50% of qualifying IP income deducted). RFAI and SIFIDE are cumulative. Mandatory dossier, retain 10 years.

By Hugo Ribeiro, Certified Accountant OCC nº 64356 · HVR Business Consulting · Updated: June 2026

The 5 essential regimes in 2026

RFAI — productive investment (equipment, buildings, software). IRC tax credit.
SIFIDE — research and development. Up to 82.5% tax credit.
ICE — capitalisation incentive (replaces DLRR). 4.5% on equity increases.
IFICI — qualified professionals (NHR successor regime). IFICI Portugal pillar →
IP Box — patent and software income. 50% deducted.

How to choose and combine regimes

RFAI + SIFIDE stack (non-overlapping costs). ICE applies horizontally to any company increasing equity. IFICI is individual (key staff). IP Box requires IP ownership. We always run a prior analysis — the Tax Authority disallows benefits without a coherent dossier.

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