Portugal unveils tax measures to spur investment

The Portuguese Government made it public last week that innovative and unprecedented tax measures were on their way

A special “tax benefits package” for companies will allow a deduction of up to 20% on investments of up to 5 million euro. The planned benefits will make it possible for a company to reduce its corporate tax rate to as low as 7.5% in some cases.

Reports that the government will set up a development bank to help finance small and medium sized companies were also confirmed. The government is working to improve the collection and reimbursement of VAT as well as contemplating a broader corporate tax reduction as a way to stimulate activity.