Fundraising has never been more competitive. Startups with strong R&D foundations are finding themselves squeezed between long development cycles and increasingly cautious investors. Yet, amid the tightening market, Portugal has become one of Europe’s most dynamic gateways for innovation financing.
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.
- The result? Over €3 billion raised in R&D-dedicated funds—and around €2 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?
In the past, securing SIFIDE investment required companies to establish operations in Portugal and prove their R&D eligibility locally — often a time-consuming hurdle for foreign founders. Today, the process has evolved significantly:
✅ 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.
What It Takes: The SIFIDE Process Step-by-Step
Our team guides you through the entire process — from kick-off to securing your investment in Portugal.
- Kick-off – Align on the scope of activities, present the expected timeline, and outline the resources required to complete the SIFIDE process.
- Investor Validation – Present your company to SIFIDE funds and confirm investment interest.
- Company Set-Up in Portugal – In parallel, we will begin the administrative process by incorporating the legal entity, open a local bank account, setting up the accounting system and establishing tax representation.
- ANI Certification – Prepare the necessary materials to obtain the ANI Certification, which is required for investment by SIFIDE funds.
- Setting up your R&D activities – Assist in hiring key talent, establishing the right R&D center, and connecting with the appropriate partners to support the development of the operations in Portugal.
- Final Investment – Secure the term sheet and close the investment, with funds disbursed to the Portuguese entity.
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!
