Portugal’s PEPAC 2023–2027 programme offers non-repayable grants covering up to 60% of eligible investment for businesses developing non-agricultural activities in rural areas. Under intervention D.1.1.1.3, SMEs can receive funding to establish, expand or modernise businesses in sectors such as tourism, retail, hospitality and local services.
Several application calls are currently open across mainland Portugal, with deadlines ranging from 13 November 2026 to 18 January 2027, depending on the location of the investment.
Programme details
- Incentive programme: PEPAC 2023–2027 – Intervention D.1.1.1.3
- Type of support: Non-repayable grant
- Funding rate: 50% or 60% of eligible investment, depending on the call
- Eligible investment: More than €10,000 and up to €300,000
- Maximum potential grant: €180,000
- Eligible applicants: Micro, small and medium-sized enterprises (SMEs)
- Geographical scope: Eligible rural areas of mainland Portugal
- Application deadlines: 13 November 2026 to 18 January 2027, depending on the local call
- Application platform: Balcão dos Fundos da Agricultura
About the incentive
PEPAC intervention D.1.1.1.3 supports the development of non-agricultural economic activities in Portugal’s rural territories, encouraging business investment, job creation and local economic development.
The programme provides grants covering 50% of eligible expenditure in most calls, increasing to 60% in selected territories. For example, a business investing €200,000 in an eligible rural tourism project could receive a €100,000 grant at a 50% funding rate, subject to approval. Funding is managed through local action groups (Grupos de Ação Local, or GALs). Each group establishes its own application periods, priorities and selection criteria, making the location of the investment a determining factor.
Eligible businesses and investments
The programme is available to eligible SMEs planning to establish or expand non-agricultural activities in rural areas. Examples of potentially eligible activities include:
- Tourism and hospitality: Rural accommodation, restaurants and tourism activities.
- Retail and local commerce: Shops and other commercial establishments.
- Manufacturing and crafts: Traditional products, artisan workshops and small-scale production.
- Local services: Repair, maintenance, professional services and other activities serving businesses or local communities.
Eligible expenditure may include construction and renovation works, new machinery and equipment, essential business vehicles, software, branding and certain project development costs. Eligibility depends on the company’s registered economic activity (CAE), the project’s location and the conditions of the relevant application call.
Main conditions to consider
Applicants must meet the programme’s legal and financial requirements, including compliance with Portuguese tax and Social Security obligations. Projects must demonstrate economic and financial viability, comply with applicable licensing requirements and meet the selection criteria established by the relevant GAL.
The timing of investment expenditure is particularly important. Some calls only accept expenses incurred after the application is submitted, while others allow earlier expenditure within specified limits. As funding is limited and applications are competitively assessed, meeting the eligibility requirements does not guarantee approval.
Need more information?
Oporto Accounting supports businesses and entrepreneurs in assessing eligibility, preparing grant applications and developing the financial information required for investment projects.If you are planning to establish, expand or modernise a business in rural Portugal, contact Oporto Accounting to assess whether your project qualifies for PEPAC funding before the applicable deadline.
To find out whether your hiring plans qualify before the 13 November deadline, please get in touch through our contact form.
