by André Sarmento
Portugal’s innovation ecosystem has experienced significant growth in recent years, attracting international founders, investors, and professionals eager to build and scale their businesses. Three of the most compelling opportunities for founders and investors are SIFIDE, IFICI (NHR 2.0), and the Golden Visa. Together, these programs create a unique environment for growth, combining tax incentives, access to capital, and a strategic base in Europe.
What are SIFIDE, IFICI, and the Golden Visa?
SIFIDE – A Unique Opportunity for Founders
Right now, we see a unique opportunity in Portugal’s SIFIDE program, especially for founders looking to fund their research and development activities. The SIFIDE (Sistema de Incentivos Fiscais à Investigação e Desenvolvimento Empresarial) program is one of the most powerful tax incentive schemes available in Europe, channeling Portuguese corporate taxes into venture capital funds that invest in certified R&D companies operating within the country. This setup is a win-win for both companies engaging in innovative projects and the economy at large.
Why It’s Relevant Now
- Scale: With €3.1B already raised by SIFIDE-backed VC funds, there is still approximately €2B available to deploy into high-potential R&D companies. This is an unprecedented opportunity for startups and scale-ups looking to tap into substantial funding for their growth and innovation.
- Supply Gap: While there are substantial resources allocated to R&D funding, there aren’t enough Portuguese-based R&D companies to absorb all the available capital. As a result, many foreign scale-ups are setting up Portuguese subsidiaries to qualify for SIFIDE eligibility, further increasing the demand for funding.
- Funding Scope: The SIFIDE program isn’t just limited to short-term R&D projects; it can finance multi-year R&D capital expenditures (capex), which is essential for long-term innovation. Additionally, within specific guidelines, the program can even fund a portion of SG&A payroll directly tied to R&D activities conducted in Portugal, offering a significant financial boost to companies dedicated to developing new products, services, or technologies.
Take Action:
We support founders through the end-to-end process of leveraging the SIFIDE program. From setting up a Portuguese subsidiary to preparing R&D certification and securing funding from SIFIDE-backed VC funds, we ensure that startups are well-positioned to benefit from this unique opportunity. Several startups have already used the SIFIDE program to secure funding for the next 5 years of R&D. If you’re looking to expand your R&D capabilities and tap into this exciting funding stream, we are here to help. Learn more and get started with Dealflow.eu by visiting our CFO Services page.
Golden Visa – Access to Europe for Founders and Investors
Given the Portuguese Government announced intention to revoke tax incentives for new SIFIDE Funds, Golden Visa Venture Capital Funds emerge as the natural substitute, with the advantage of allowing the financing of Sales and Marketing expenses — areas where Portuguese startups need to invest heavily in order to scale.
Portugal’s Golden Visa program is also a powerful tool for investors looking for a Plan B or to move into Europe. By investing in a qualifying business or fund, international investors can gain residency in Portugal and unlock the many benefits the country has to offer, including access to the EU, a strong legal framework, and tax advantages.
The Golden Visa investment in venture capital enables founders to access capital through funds that focus on high-growth sectors, including deeptech, biotech, and sustainability. While also enabling Golden Visa investors to benefit from the high potential returns that only venture capital investments can aspire to provide.
- Flexible Investment Options: You can invest in venture capital funds, or job-creating businesses to qualify for the Golden Visa.
- Family Benefits: Investors can extend their residency benefits to immediate family members, creating a long-term path to European citizenship.
- Strategic Location in Europe: Portugal’s strategic location offers access to the Schengen Area and to a wealth of innovative startups.
Ventures.eu Fund I, in particular, with its wide network of European and US Corporates, VCs and other Ecosystem players is uniquely positioned to give Golden Visa investors access to the best Portuguese and European startups while offering the opportunity to secure residency in Portugal.
Take Action:
For Golden Visa investors looking for a differentiated investment opportunity, explore Ventures.eu Fund I. With a focus on innovative sectors, Ventures.eu can provide access to the best Portuguese and European startups.
IFICI – Portugal’s New Tax Regime for Talent and Innovation
Launched in 2024, the IFICI (Incentivo Fiscal à Investigação Científica e Inovação) regime, also known as NHR 2.0, is a tax incentive designed to attract international talent, investors, and entrepreneurs to Portugal. It’s a 10-year program that offers a flat tax rate of 20% on eligible income, exemptions on most foreign-sourced income, and full exemptions on capital gains from foreign investments.
- Flat 20% Tax Rate: Professionals eligible for IFICI pay a flat 20% tax rate on Portuguese employment or self-employment income—significantly lower than the progressive tax rates that can reach 53%.
- Exemption from Tax on Foreign Income: Investors and founders can benefit from full exemptions on foreign dividends, interest, royalties, and capital gains.
- 10-Year Term: The regime lasts for 10 consecutive years, providing long-term stability for international entrepreneurs and investors.
Who Qualifies?
To qualify for the IFICI regime, individuals must become tax residents in Portugal and have not been a resident in the country for the previous five years. The key criteria for eligibility include professional activity in certified startups, export-oriented companies, strategic companies, and academic and research positions.
Why It Matters for Investors:
Investors in a Startup or a Fund that are willing to play an active role in supporting one or more startups, which would greatly benefit from their know-how and network, would be directly contributing to the success of those startups and to a higher return of their investment. If that active role is formalized through an employment contract or a Board of Directors position, the investor can also benefit from the IFICI tax incentive.
Why It Matters for Founders:
For founders, IFICI offers an unparalleled opportunity to maximize their income and profits while contributing to Portugal’s growing innovation ecosystem. Combined with Portugal’s favorable business environment, IFICI helps build a tax-efficient structure for business operations and long-term growth.
See the full article made on IFICI here.
Take Action:
If you’re an investor looking to know more about this regime, get in touch with the Ventures.eu team, and we’ll let you know about the amazing investment opportunities that we have access to in Portugal and in the Rest of Europe.
Why These Programs are a Unique Opportunity for Founders
When combined, SIFIDE, IFICI, and the Golden Visa create a comprehensive support system for founders in Portugal. Here’s why:
- Tax Efficiency and Financial Support: SIFIDE and IFICI offer attractive tax incentives that reduce the cost of doing business and investing in innovation, allowing you to allocate more resources to growth.
- Access to Capital: SIFIDE and Golden Visa Funds are attractive sources of funding that complement themselves allowing you to secure capital for your business while simultaneously benefiting from the support of experienced investors with large networks of contacts.
- Long-Term Stability: Both IFICI and the Golden Visa offer long-term benefits, providing stability and a clear pathway for scaling your business in Europe.
Portugal has become a top destination for international entrepreneurs, offering not only a favorable tax environment but also a vibrant ecosystem for innovation. Whether you are a startup founder, an investor, or an entrepreneur, Portugal’s unique combination of tax incentives and access to capital can help you grow and scale in Europe.
How Can Dealflow.eu and Ventures.eu Help?
At Dealflow.eu and Ventures.eu, we specialize in helping entrepreneurs and investors take full advantage of Portugal’s specialized programs for founders and investors, including SIFIDE, IFICI, and the Golden Visa. Our internal and partner experts are here to guide you through the process, ensuring that you understand the eligibility requirements and maximize the benefits available to you.
Take Action Now:
Explore Ventures.eu Fund for Golden Visa Investors
Learn More About SIFIDE with Dealflow.eu
Get Expert Guidance on IFICI / NHR 2.0
Portugal is waiting for you to take the leap. Start building your future today!
