Municipality of Porto changes fiscal regulations to support business investment

With the aim of attracting national and international investment to promote development and job creation in the municipality of Porto, a chapter dedicated to Support for Business Investment has been added to the Municipal Tax Exemption Regulations.

The Municipality of Porto intends for this support, in the form of exemption from Municipal Property Tax (IMI), Municipal Tax on Onerous Property Transfers (IMT), and in some cases from the Municipal Surcharge (Derrama Municipal), to be an instrument for professional training and qualification, and for the creation of local employment, aiming to serve as an important driver of innovation, competitiveness, and economic growth.

To benefit from IMI exemption, companies must hold investment projects in the city with relevant applications of at least three million euros, or ensure the creation of at least 30 jobs, half of which are qualified or highly qualified. In these cases, companies will also be exempt from the Municipal Surcharge for a period of five years, without the possibility of renewal.

The aforementioned investment projects must fall within the following areas: Health and Life Sciences, Mobility, Energy and Environment, Blue Economy, ICT and Service Centers, Culture and Creative Industries, and Sustainable Construction.

Requests must be submitted by September 30 of each calendar year to obtain tax benefits for the following year. Additionally, the application must be submitted at the time of the transfer of the property where the economic activity is carried out.

Each request will be reviewed by the InvestPorto team, and the final decision will be announced by the Porto City Council.