Funding scheme supporting innovative, productive investment projects by SMEs located in low-density territories in mainland Portugal, aiming to increase competitiveness, innovation, exports, and qualified employment through new or significantly improved products, services, or production processes.
Programme details
Application deadline: 31/03/2026
Beneficiary entities: SMEs and micro-enterprises
Type of benefit: 50% non-refundable grant (60% for Alto Alentejo; Beiras e Serra da Estrela)
Benefit: Tax credit of 32.5% to 82.5% of R&D expenses
Minimum investment: 300.000€
Geographic scope: Low-density territories in mainland Portugal (Deliberation n.º 31/2023/PL from the Interministerial Coordinating Committee for Portugal 2030)
About the funding of Productive Innovation
Productive Innovation: Low-Density Territories is a funding incentive that supports individual innovative investment projects aimed at strengthening business activity in low-density regions.
The programme supports projects that result in the creation of new establishments, the expansion of production capacity, diversification into new products or services, or fundamental changes in production or service processes.
Eligible projects must focus on the production of tradable and internationally oriented goods or services with high added value, contributing to export growth, technological upgrading, digital transformation, sustainability and job creation, particularly qualified employment.
How it works
This incentive is designed to support investment projects that promote structural transformation and competitiveness in low-density territories.
Projects must demonstrate a clear contribution to:
Internationalisation and export capacity
Technological and digital upgrading
Sustainable business practices
Job creation, with an emphasis on qualified employment
The incentive applies to investments that represent a relevant change in the company’s productive or service capacity, rather than routine operational expenditure.
Eligible investment expenses
Eligible expenses under Productive Innovation: Low-Density Territories include the following categories.
Tangible assets
Machinery and equipment
IT hardware
Installation and setup costs
Intangible assets
Software
Patents, licences and technical knowledge
Technology transfer costs
Other eligible investment costs
(up to 20% of total eligible expenditure)
Engineering and architecture services
Studies, diagnostics and audits
Marketing plans
DNSH (Do No Significant Harm) environmental studies
Certification and financial validation costs
Additional eligible expenses (subject to limits)
Construction and renovation works, applicable to the industry and tourism sectors
Non-fossil-fuel vehicles, when integral to tourism-related activities
Who can benefit from this incentive
Productive Innovation: Low-Density Territories is aimed at companies that develop innovative investment projects in low-density regions.
The incentive is particularly relevant for businesses that:
Intend to establish new operations or expand existing capacity
Introduce new products, services or production processes
Operate in tradable sectors with an international orientation
Seek to combine growth with sustainability and technological upgrading
Understanding the rules and eligibility criteria of each incentive is essential to assess its relevance and potential impact within a company’s broader investment and tax strategy.
For clarification or further information, reach out through our contact form.
