AICEP triples funds to attract more investment
Next year Portugal’s overseas investment agency AICEP will get three times more funding to attract more Foreign Direct Investment (FDI) from €150 million now to €500 million.
According to news source ECO Online, the transfer will be made by the Ministry of Finances to the government trade and investment body run by Ricardo Arrojo to be used for financial incentives for big ticket projects from foreign companies; projects that would have a positive structural impact on Portugal’s economy.
The funds are enshrined in the draft State Budget for 2025 that parliament will vote on at the end of the month.
AICEP has two incentive regimes: one which is guaranteed until 2027 for large companies excluded from Portugal 2030 (EU funding) with €150 million per annum aimed at providing these companies with a carrot to invest.
The other parcel of funding is aimed at encouraging companies to invest in strategic sectors under the Investment Contract Regime (RCI) and within the scope of the Temporary Crisis and Transition Framework with an estimated budget of €1Bn.
The €500 million that will be available from next year is a +233% increase on the €150 million set out in the State Budget for 2024 destined to finance productive innovation projects and research and development projects from non-SME companies.
The regime of incentives was created by the then Minister for the Economy, António Costa Silva to “continue to support investment, employment, and economic activity from large companies.