Blog | Tax Benefit | SIFIDE II Tax Benefit
Consulting | October 10, 2025
SIFIDE II Tax Benefit
The Tax Incentive System for Business Research and Development, or SIFIDE, has been the main tax benefit in Portugal for companies that carry out Research & Development activities.
SIFIDE is a tax benefit that allows companies to deduct, in Corporate Income Tax, up to 82.5% of their investments in Research & Development (R&D). Created with the objective of promoting and encouraging investment in business R&D, SIFIDE is a tax benefit with very attractive characteristics:
- Accessible to all companies;
- Cumulative, under certain circumstances, with financial incentives;
- The calculated credit can be deducted over the following twelve fiscal years; and,
- Strengthens the entity’s R&D credentials in the market and with relevant third parties.
This tax benefit will be in force, at least, until the 2025 fiscal year, therefore, at the beginning of next year, the application period for SIFIDE 2025 opens, for the submission of R&D projects executed in that fiscal year.
However, although the application period only begins in 2026, this is the most appropriate timing to explore this benefit in order to ensure adequate planning and monitoring.
Beneficiaries
- All Corporate Income Tax taxpayers who carry out, as their main activity, an activity of an agricultural, industrial, commercial or service nature.
Covered R&D Activities
- Research expenses: acquisition of new scientific or technical knowledge;
- Development expenses: exploitation of research results or other scientific or technical knowledge with a view to discovering or substantially improving raw materials, products, services or manufacturing processes.
Eligible Expenses
- Acquisition of tangible fixed assets, in new condition;
- Expenses with personnel with minimum educational qualifications of level 4 – secondary education obtained through dual certification pathway or secondary education plus professional internship – directly involved in research and development tasks;
- Operating expenses, up to a maximum of 55% of the personnel expenses mentioned above;
- Expenses relating to the contracting of research and development activities from entities with recognized suitability; or,
- Expenses with the acquisition of patents that are predominantly intended for carrying out research and development activities.
SIFIDE Calculation
The credit is calculated by applying a base rate of 32.5% on the relevant applications made in a given year, as well as an incremental rate of 50% (up to the limit of €1.5M) on the increase in relevant applications made compared to the average of the previous two years.
Conclusions
It is important to note that many companies mistakenly assume that they do not carry out R&D activities, when in reality they develop processes, technical improvements or innovative solutions that can be framed within the scope of SIFIDE. A careful technical analysis often allows the identification of expenses and projects that qualify for this incentive, even in sectors traditionally not associated with scientific research.
We also highlight that SIFIDE is scheduled to be in force only until 2025, so this may be the last year in which companies can apply for the tax benefit.
Furthermore, the SIFIDE credit calculated in relation to the relevant applications made in the 2025 fiscal year may be deductible against the tax assessments verified until the 2037 fiscal year.
Obtaining the SIFIDE credit is dependent on the approval of the application by ANI, the National Innovation Agency, and the application process relating to the relevant applications made in 2025 runs, in principle, until May 31, 2026.
Contact Solvian to schedule a diagnostic assessment with our specialists, without any obligation.
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