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Portugal 2020: Conditions of SI Inovação Produtiva
17 Jan, 2020

Portugal 2020: SI Inovação

In the scope of Portugal 2020, SI Inovação Produtiva is the financing line for entrepreneurship and innovation projects in Portugal for larger investment projects.

Mercal can support your project by carrying out its business plan and investment project, aiming at obtaining financial public grants for investment and adequate sources of financing.

In SI Inovação Podutiva are eligible projects with the following objectives:

  • The creation of a new company;
  • Increasing the capacity of an existing establishment;
  • The diversification of an establishment’s production to products not previously produced in the establishment;

Eligible Expenses

The following expenses are eligible (Minimum amount = € 75,000; Maximum amount = € 5,000,000 (NUTS II Algarve) or € 25,000,000 (remaining regions):

Tangible assets consisting of:

    • Costs of acquisition of computer equipment, including the software necessary for its operation;
    • Costs of acquisition of machinery and equipment and the directly attributable costs to place them in the location and conditions necessary for them to be able to function.

Intangible assets consisting of:

    • Transfer of technology through the acquisition of national and international patent rights;
    • Licenses or know-how not protected by patent;
    • Standard Software or developed specifically for a particular purpose.

Other investment expenditure (for SMEs only) up to 20% of total eligible project costs:

  • Expenses with the intervention of official accountants or statutory auditors, in the validation of the expenses of requests for payment, up to the limit of € 5,000;
  • Engineering services related to the implementation of the project;
  • Studies, diagnostics, audits, marketing plans and architectural and engineering projects associated with the investment project.

It is not possible to include any expenses prior to the date of the application.

Projects in the tourism sector, in duly justified cases in the exercise of the tourist activity, may also include as eligible expenses: vehicles that constitute the tourism activity to be developed, as long as it is directly related to the exercise of the activity.

Projects in the tourism and industry sectors, in duly justified cases under the project activity, may also include, as eligible expenses, the construction of buildings, refurbishment works or other constructions, provided that they are purchased from third parties not related to the project.

Non Eligible Expenses

  • Investment costs corresponding to the housing units operated under periodic housing rights, of a real or compulsory nature;
  • Purchase of real estate, including land;
  • Sale and rights to use spaces;
  • Acquisition of equipments in state of use;
  • Normal costs of operation of the beneficiary and maintenance and replacement investments, as well as costs related to periodic or continuous activities such as current advertising, routine tax consultancy expenses and legal and administrative services;
  • Costs related to direct investments abroad;
  • Acquisition of motor vehicles, aircraft and other transport or aeronautical material;
  • Cash payments made by beneficiaries to their suppliers, except in situations where this is the most frequent means of payment, depending on the nature of the expenses, and provided that in a unit amount not equal to or greater than € 250;
  • Works of the company for itself;
  • Costs related to export activities, namely those directly associated with the quantities exported, the creation or operation of distribution networks abroad or other current costs related to the export activity;
  • Expenses paid under contracts made through intermediaries or consultants, where the amount to be paid is expressed as a percentage of the co-financed amount or the eligible expenses of the project;
  • Working capital;
  • Expenditure declared by the beneficiary, which is not considered adequate in view of its reasonableness with market conditions, and the managing authority may lay down limits on the eligibility of expenditure and specific conditions of application in management guidance.

Portugal 2020: GRANTS in SI Inovação Produtiva

BASIC RATE15%Eligible investments equal to or greater than € 15,000,000;

Not SME

35%Midsize Companies
45%Micro and small businesses
MAJORATIONS10%SMEs with eligible investments of less than € 15,000,000 and in the areas of Industry 4.0, where digital transformation will allow disruptive changes in business models, products and production processes, circular economy or energy transition
5%Creation of qualified jobs (degree VI or higher): Micro and small business (3 or +); Midsize company (10 or +); Large company (20 or +)
10%Projects located in low density territories
10%New company projects that result from female or young entrepreneurship
MAXIMUM RATE40%Investments made in the Lisbon region (PO Lisbon)
60%Investments made in the Algarve region (PO Algarve)
75%Investments made in other regions

The grant is given with the following rules:

  • 50% non-refundable;
  • 50% reimbursable interest-free:
  • No interest or any other charges
    • The total repayment plan is 8 years (grace period of 2 years and repayment of 6 years);
    • For projects to create new hotel establishments and tourist complexes, the total repayment plan is 10 years (3 years grace period and 7 year repayment);
    • Repayments are made, in principle, every six months, in equal and successive amounts;
    • The repayment plan shall begin on the first day of the month following the first payment of the incentive or on the first day of the seventh month following the date of the expiry of the acceptance or contract, whichever occurs first.

Contact Us

Contact us now for more information. Since 1996 Mercal has specialized in the area of Management, Financial and Investment advisory.

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 part of the IMCN international network.

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