Fundraising is tougher than ever. VCs are pulling back. Valuations are down. Startups with long development cycles and high R&D costs are feeling the squeeze. But while traditional funding channels dry up, a powerful—and often overlooked—opportunity is emerging in Europe: Portugal.
Portugal’s €3B Opportunity for R&D Startups
Portugal has quietly built one of Europe’s most founder-friendly environments for innovation-heavy startups. At the heart of it? SIFIDE—a unique R&D tax incentive scheme that turns corporate tax liabilities into fuel for private R&D funds.
Here’s how it works:
- Instead of paying profit tax, Portuguese corporates can invest in SIFIDE-compliant funds.
- In return, they get up to 82.5% of their investment back as a tax credit.
- The result? Over €3 billion raised in R&D-dedicated funds—and around €1.5 billion still looking for startups to fund.
And here’s the kicker:
There’s now more money than eligible startups. Funds are actively scouting international startups willing to establish a local footprint to qualify for investment.
What’s Changed—and Why Now?
Historically, two conditions were required to access these funds:
- Set up a Portuguese subsidiary.
- Obtain a “Selo de Idoneidade” (a certification of R&D activity from the national innovation agency, ANI).
While opening a local entity is relatively easy, securing the R&D certification used to be a bottleneck—especially for foreign startups that had to frontload local R&D activity just to apply.
But not anymore. ANI has reformed the process to make it startup-friendly:
✅ Global R&D counts: Startups with at least 7.5% of last year’s revenue invested in R&D—even outside Portugal—can now use that to qualify.
✅ Conditional recognition: Early-stage companies without full local ops can get provisional approval.
✅ Fast-track for incubated startups: Being part of a certified incubator unlocks a simplified process.
These reforms massively lower the bar to entry—without lowering the quality of support.
Who Should Be Paying Attention?
You should be looking at Portugal right now if you’re:
A startup with early commercial traction
Raising Seed, Series A, or beyond
Building a product with real R&D needs
Considering EU expansion or relocating technical teams
Seeking affordable, highly skilled talent
Whether you’re building in biotech, deeptech, climate, or AI—Portugal may be the funding oasis you didn’t know you needed.
Ready to Explore It?
Our team is already supporting startups navigating this path, connecting them with top-tier SIFIDE funds, helping them set up operations, and fast-tracking their certification process.
If you’re building something bold and need fuel to scale, let’s talk.
Portugal’s R&D ecosystem is open for business—and ready to invest!
