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Startup grants and funding in Portugal: what exists in 2026

Portugal has no standing grant that every startup can claim. What a young technology company can use is a set of four things: the SIFIDE II tax credit for R&D, the R&D calls of Portugal 2030, which fund up to 80% of eligible costs, the IEFP hiring incentives, and the legal startup status, which opens doors rather than paying money.

All four are open to foreign founders, because the applicant is the company registered in Portugal. Vouchers and other startup-specific schemes appear in rounds and close when the budget is gone, so check what is open before you plan around one.

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Figures checked against the official sources between 10 and 18 September 2026. We never promise approvals.

The four things a startup can use

InstrumentNatureWhat it givesCatch
SIFIDE IITax credit32.5% of R&D costs, plus 50% of the increase. SMEs that have not completed two financial years get a 15% uplift on the base rateIt reduces corporate tax, so it only turns into cash when the company is profitable. The credit carries forward for 12 tax periods
Portugal 2030 business R&D calls (SIID)GrantUp to 80% of eligible R&D costs, alone or with universities and research centresCompetitive calls with deadlines, in Portuguese, paid as reimbursement. See the open calls
IEFP hiring incentivesGrant per hireEUR 9,668.34 for each permanent hire of a graduate aged up to 35 registered with IEFP, plus upliftsThe job offer has to be registered before the contract is signed, and the salary has a floor
Startup status (Law 21/2023)RecognitionAccess to programmes reserved for startups and to specific tax rules for staff and foundersNo money by itself

Startup status: who qualifies

Since 2023 Portugal has a legal definition of startup. Startup Portugal recognises the status, through the gov.pt portal, and decides within five working days. To qualify, a company has to meet all of these:

  • Be legally established in Portugal.
  • Have been active for less than 10 years.
  • Employ fewer than 250 employees and have turnover below EUR 50 million.
  • Be independent: not the result of a split or transformation of a large company, and not majority-owned, directly or indirectly, by one.
  • Meet one innovation condition: recognition by ANI as an innovative company with high growth potential, at least one completed round of venture capital, or investment from Banco Português de Fomento or one of its instruments.

For a foreign founder, the fourth point is the one to read twice. A Portuguese company majority-owned by a large foreign group does not qualify, however young it is. A company owned by its founders and by investment funds usually does.

The status matters for the personal tax position of founders and qualified staff, which is a subject for a tax adviser, with the employer's side in IFICI and the incentives a company needs, and for access to the startup programmes that Startup Portugal and IAPMEI launch from time to time.

Is what you do R&D?

Both SIFIDE II and the R&D calls use the same test: the work seeks something new, the outcome is technically uncertain, and it is carried out systematically and documented. Building a product with existing tools is development, but it is not R&D. Building the part nobody knows how to build yet is.

Most software startups have some of each. The habit that pays is recording, from day one, who worked on which technical problem and what was tried. Without that record, a claim two years later is guesswork.

What you should not count on

  • A grant for an idea alone. As a rule, public support goes to a company that exists, for costs it will incur.
  • A grant for salaries in general. Salaries are funded only inside an R&D project, or through the hiring incentive for a specific new contract.
  • Equity from a grant programme. Public co-investment exists, through Banco Português de Fomento and the funds it backs, but it follows investor logic: a round, a valuation, a lead investor.
  • A fast track for foreign founders. The rules are the same for everyone, and so is the language: applications are in Portuguese.

A sensible first year

  1. Incorporate with the cap table in mind. Who owns the company decides SME status and startup status.
  2. Get a certified accountant and keep the books clean. Every programme checks tax and social security status.
  3. Track R&D time and costs from the first month.
  4. Register job offers with IEFP before hiring, when the candidate is registered there.
  5. Apply for startup status once the innovation condition is met.
  6. File the first SIFIDE II application by the end of May of the following year, even with no profit: the credit carries forward.

Frequently asked questions

Are there startup grants for foreign founders in Portugal?

There are no grants reserved for foreign founders and none that exclude them. The applicant is the company registered in Portugal. What decides eligibility is what the company does, its size, its ownership and its accounts.

Do I need startup status to claim SIFIDE II?

No. SIFIDE II is open to any company that does real R&D and pays corporate tax in Portugal. Startup status is a separate recognition with separate benefits.

We have no revenue yet. Is any of this useful?

The hiring incentives pay cash for each eligible hire. An R&D grant pays as you spend, by reimbursement. SIFIDE II builds a tax credit that you use when the company turns a profit, within 12 tax periods.

Can we combine an R&D grant with SIFIDE II?

Yes, but not on the same cost. R&D costs already covered by a non-repayable grant are excluded from SIFIDE II. The part of the project the grant does not fund can go into the tax credit.

Official sources

The official texts are in Portuguese. The figures on this page were checked against them.

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