Guide · The basics
Grant, loan or tax credit? What fundo perdido means in Portugal
Fundo perdido is the Portuguese term for a non-repayable grant: public money that pays part of a cost and that you keep, as long as you meet the conditions you signed. Portugal also supports companies with repayable incentives and subsidised loans, which you pay back, and with tax credits, which reduce a tax bill and put no cash in your account.
In English, all three often get called grants. Find out which one you are reading about before you put a number in a business plan. A grant is income and a loan is debt. A tax credit has value in the years when the company has tax to pay.
Figures checked against the official sources between 10 and 19 September 2026. We never promise approvals.
- Non-repayable grant (fundo perdido)
- Portugal 2030 incentive systems, the IEFP hiring incentive, the PEPAC young farmer premium
- Loan or repayable incentive
- The tourism credit lines: LAQO and Turismo +Sustentável
- Tax credit (benefício fiscal)
- RFAI and SIFIDE II
- Hybrid
- A loan with a part that turns into a grant when the project meets its targets
- First question to ask
- Do I pay this back, and under which conditions?
The three instruments
| Instrument | Portuguese terms | How the money reaches you | What you owe |
|---|---|---|---|
| Non-repayable grant | Fundo perdido, incentivo não reembolsável, subsídio | As refunds of costs you have paid, claim by claim | The obligations in the grant agreement. Break them and the programme recovers money |
| Loan or repayable incentive | Incentivo reembolsável, linha de crédito, empréstimo | A public agency or a bank lends it, often with a guarantee behind it | The capital, on the schedule in the contract |
| Tax credit | Benefício fiscal, dedução à coleta | You deduct it from the corporate tax due, in the annual return | Keeping the assets or the jobs for the period the law sets |
Refunds arrive after you have paid. The guide on how grants are paid covers claims, advances and the part held back until the project closes.
Programme by programme
| Programme | What it is | The number to remember |
|---|---|---|
| Portugal 2030, Productive Innovation | Grant | Up to 60% of eligible costs for SMEs |
| Portugal 2030, Business R&D | Grant | Up to 80% of eligible costs |
| IEFP hiring incentive | Grant, per contract | EUR 6,445.56 for a permanent contract, before uplifts |
| PEPAC, young farmer installation | Grant | A premium of up to EUR 50,000 for those who farm full time. The 2026 calendar of calls, updated on 13 August 2026, has no call for it |
| LAQO, Turismo de Portugal | Loan | Up to 80% of the eligible investment. If targets are met, an SME keeps 25% of the Turismo de Portugal part of the loan |
| Turismo +Sustentável, Banco Português de Fomento | Loan | Bank credit with a mutual guarantee. Up to 20% can convert into a non-repayable amount |
| RFAI | Tax credit | 30% of eligible investment in most regions |
| SIFIDE II | Tax credit | 32.5% of R&D spending, more on the increase |
The full list, with the open and closed programmes marked, is in business grants in Portugal.
Why the difference matters in your business plan
- A grant lowers the cost of the investment, late. You finance the whole project first. The grant comes back in refunds over the life of the project.
- A loan adds debt. It goes on the balance sheet, and the business repays it from its cash flow. A premium that converts part of it into a grant depends on targets you may miss, so budget the full repayment.
- A tax credit needs tax to pay. A new company with losses uses nothing in the first years. Unused RFAI carries forward for 10 years and unused SIFIDE II for 12, so the value arrives later.
The instruments combine. RFAI can sit on top of a Portugal 2030 grant for the same investment, as long as the total aid stays within the maximum the state aid rules allow for the region and the size of the company. Do that calculation before the investment starts.
A grant you keep still has conditions
Non-repayable means you do not pay it back if you comply. The grant agreement fixes what compliance means:
- You carry out the project as approved, and you ask before you change it.
- You prove each cost with invoices and bank proof of payment.
- You meet the targets you promised, such as turnover, exports or jobs. Missing them can reduce the grant.
- You keep the investment in use, in the region, for a minimum period after the final payment.
Hiring incentives work the same way. IEFP pays in three instalments, and the last one only arrives after the job has lasted 24 months.
The Portuguese words to look for
- Não reembolsável or fundo perdido: you keep it.
- Reembolsável: you pay it back.
- Linha de crédito and garantia mútua: a bank loan, with a public guarantee that helps you get it.
- Prémio de desempenho or prémio de realização: the part of a loan that turns into a grant when the project meets its targets.
- Dedução à coleta: a deduction from the tax due, which is how tax credits work.
The glossary of Portuguese funding terms has the rest.
What foreign investors get wrong
- Budgeting a loan as income. The tourism lines are the usual case: they are often described in English as grants.
- Counting a tax credit as cash in year one. A company with no tax to pay waits.
- Assuming a grant has no strings. The obligations run for years after the last payment.
- Adding everything up. State aid rules cap the total public support for one investment. Two programmes on the same assets share that ceiling.
Frequently asked questions
What does fundo perdido mean?
It means non-repayable: public money that covers part of a cost and that you do not pay back, provided you meet the conditions of the grant agreement. The formal term in the regulations is incentivo não reembolsável.
Is a Portugal 2030 grant really non-repayable?
The grant part is, provided you carry out the project and meet the conditions you signed. Some calls add a repayable part or make a share of the grant depend on results. The call says which.
Is LAQO a grant?
No. It is a loan for up to 80% of the eligible investment. If the project meets its targets, 25% of the Turismo de Portugal part of the loan turns into money an SME keeps.
Can I combine a grant with a tax credit?
Often, yes. RFAI can apply to the same investment as a Portugal 2030 grant, within the maximum aid allowed for the region and the size of the company. See RFAI.
Is a tax credit useful for a company that makes no profit yet?
Later. Unused RFAI carries forward for 10 years and unused SIFIDE II for 12. A company that expects years of losses should value the credit with that delay in mind.
Official sources
The official texts are in Portuguese. The figures on this page were checked against them.
- IAPMEI: open calls (call MPr-2026-6, SICE Productive Innovation) (checked 10 September 2026)
- Portugal 2030, official website: calls for applications (checked 10 September 2026)
- IEFP: +Emprego measure (iefponline) (checked 18 September 2026)
- Government of Portugal: first PEPAC calls for young farmers (press release) (checked 15 September 2026)
- PEPAC (mainland): indicative calendar of calls for 2026, updated 13 August 2026 (checked 15 September 2026)
- Turismo de Portugal: Tourism Offer Qualification line (LAQO) (checked 10 September 2026)
- Banco Português de Fomento: Turismo +Sustentável line (checked 15 September 2026)
- Investment Tax Code (CFI), article 23 (RFAI: tax benefits) (checked 18 September 2026)
- Investment Tax Code (CFI), article 38 (SIFIDE II), as amended by Decree-Law 170/2026 (checked 18 September 2026)
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