Contractual Tax Benefits

The Azores created a special Contractual Tax Benefits system for companies investing in projects of recognized strategic relevance to the Region.

These projects must involve investment values over €2 million in São Miguel and Terceira islands (€1 million for Terceira, subjected to the creation of jobs and must not be relocation from other islands), €400 thousand in Santa Maria, Graciosa, São Jorge, Pico, Faial, Flores and Corvo islands, €200 thousand for projects in marine biotechnology or aquaculture, regardless of their location, with more than 10% investment expenses in R&D.

Tax benefits may take the following forms: Corporate Income Tax base deductions, from 30% to 100% of the eligible expenses, up to 90% of the tax base, exemption or reduction of the Municipal Property Tax and exemption or reduction of the Municipal Property Transfer Tax.

Click here to download the regulation (Portuguese only).