Porto, second biggest city of Portugal, will start providing tax benefits to startups.
The decision results from following a memorandum of understanding signed between the municipal council and Startup Portugal. This agreement coincides with the inauguration of Startup Portugal’s new office in the northern region, staffed with a team of five.
Ricardo Valente, Councillor for Economy, Employment and Entrepreneurship at Porto City Council emphasized the importance of this development. “The opening of an office in the city of Porto by Startup Portugal recognizes the relevance of the city’s entrepreneurship ecosystem and the entire North region, demonstrating the continuous commitment to supporting the capacity for transformation and retransformation of the country’s economic base,” he said.
Startup Portugal’s new office is designed to promote the entrepreneurial ecosystem in North of Portugal, an area currently hosting over 1,200 startups valued at approximately 8.9 billion euros, which constitutes 27% of the total Portuguese ecosystem. Since 2020, these startups have collectively raised more than 2 billion euros, representing 40% of the total funds raised by the Portuguese ecosystem, according to data shared by Startup Portugal.
Startup Portugal and the municipality have signed a memorandum of understanding which includes a provision for the potential exemption of municipal tax fees for startups and scaleups headquartered in Porto. This initiative aims to create a more supportive environment for entrepreneurial growth and innovation. Additionally, the agreement outlines the introduction of other complementary tax benefits to further assist these growing companies.
Porto is the 7th municipality to commit to applying a municipal tax exemption to companies recognized by Startup Portugal. São João da Madeira, Fundão, Arcos de Valdevez, Barreiro, Porto de Mós and Odemira are the other municipalities.
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