IFRRU 2020 is a financial instrument of Portugal 2020 that intended to support tourism investments in urban renewal, which covers the whole of Portugal.
Support is provided through financial products of two types (not cumulative):
- Loans – provided by the financial entities selected to manage IFRRU 2020 support, with maturities of up to 20 years, grace periods equal to the investment period + 6 months (max. 4 years), and interest rates below market rates;
- Guarantees – associated with loans provided by the same selected financial entities, for projects that do not have sufficient guarantee.
Tax benefits already foreseen in the Portuguese law associated to the location and nature of the intervention may be also applicable, namely related to IMI, IMT and VAT.
Can be supported:
- Overall rehabilitation of buildings aged 30 years or more (or in the case of younger buildings, with a conservation level of 2 or less;
Rehabilitation of abandoned industrial spaces or units;
- Rehabilitation of private units integrated in an overall rehabilitation of a social housing building In the same funding application, IFRRU 2020 supports energy efficiency measures complementary to urban rehabilitation interventions.
IFRRU 2020: Requirements
The projects to be supported must firstly meet the IFRRU 2020 location requirements:
- Buildings must be located in the territories defined by the Municipality: Urban Rehabilitation Area (ARU)/Action Plan for Urban Regeneration (PARU).
For the submission of the application it is necessary in the first phase:
- Request for the opinion of the Municipality where the property is located;
- Energy Certificate of the property before the intervention by an expert qualified by ADENE;
The application for IFRRU 2020 will be submitted directly to the selected banks: BPI, Santander or Millennium BCP.
After confirming that the eligibility requirements of the beneficiaries are fulfilled, the application can be prepared by integrating the following elements:
1. Rationale of investment costs as well as the identification of risks associated with the project, namely due to the existence of archaeological findings in the area;
2. Demonstration of cost reasonability, based on at least 3 valid budgets;
3. Business plan, including financial feasibility study related to the project,
Do you need more information?
Contact us now for moreinformation. Since 1996 Mercal has specialized in the area of business consulting for the Tourism and Hospitality Sector.
Mercal will be able to support you initiative through the elaboration of the business plan and feasibility study of the investment project. Providing both technical assistance to the project and supporting compliance with eligibility conditions.
Mercal is considered by important international entities as the best Portuguese consulting company.
Mercal is part of the IMCN international network and is an important partner of Turismo de Portugal, Turismo Fundos, IAPMEI, AICEP, among others.