By location · The interior
Investing in Portugal's interior: what changes
Most of inland Portugal is classed as interior or low-density territory, and that label is worth money to a company. Small and medium-sized companies there pay 12.5% corporate tax on the first EUR 50,000 of profit, Portugal 2030 calls reserve budgets and better conditions for low-density territories, IEFP adds 35% to the hiring incentive for a job in the interior, and people who move there to work or to run a business can get a relocation payment of EUR 3,759.91 or more.
None of this makes a weak project viable. It lowers the cost of a project that works, and it is a reason to look at the map before choosing a site.
Figures checked against the official sources on 18 September 2026. We never promise approvals.
What changes when the company is in the interior
| Area | In the interior | Nature |
|---|---|---|
| Corporate tax | 12.5% on the first EUR 50,000 of taxable profit, for SMEs and small mid caps that carry on their activity in, and are managed from, an interior territory. Elsewhere the SME rate is 15% | Tax |
| Portugal 2030 grants | Calls often set aside a budget for low-density territories, and some add points or a bonus to the rate. The 2026 Productive Innovation call has a separate allocation for them | Grant |
| Hiring | One of the 35% uplifts of the IEFP hiring incentives is for jobs located in the interior. Up to four uplifts can be combined | Grant per hire |
| Investment tax credit | Most of the interior is in the regions where RFAI is 30% | Tax credit |
| People who move | Emprego Interior MAIS pays EUR 3,759.91 to a person who moves to the interior with a permanent job, or who creates or transfers their own job or company there | Payment to the person |
Which places count
There are two lists, and they are not the same. Interior territories, used for the corporate tax rate and for the IEFP measures, are set by ministerial order, municipality by municipality and in some cases parish by parish. Low-density territories, used by Portugal 2030, are defined by the programmes. They overlap heavily: most of Alentejo, the inland Centro and Norte, and parts of the Algarve hills are on both.
The coast between Setúbal and Viana do Castelo is mostly on neither. A site ten kilometres inland can change the answer, so check the municipality and the parish before you sign, not after.
Emprego Interior MAIS: the payment for moving
This is the measure behind the headlines that Portugal pays people to move. It is run by IEFP and it pays the person, not the company. The full conditions are in the relocation grant guide.
- EUR 3,759.91 for a person who moves to an interior territory with a permanent employment contract, or who creates or transfers their own job or company there.
- EUR 2,685.65 when the contract is fixed term.
- 20% more for each member of the household who moves too.
- EUR 805.70 towards the cost of moving belongings.
- The application goes to IEFP within 180 days of the start of the contract or of the move.
For an investor, the interest is indirect: it helps to attract the people a business in the interior needs, and it applies to founders who move their own activity there. The conditions on who qualifies are IEFP rules on residence and registration, and they should be checked with IEFP for each person.
What does not change
- The order of the steps. The application still comes before the first order.
- Reimbursement. Grants are still paid after you pay the suppliers.
- The need for a market. The productive investment calls are for goods and services that can be sold outside the local area. A business that depends on local demand is scored on that.
- Licensing and labour. Permits take as long as anywhere, and skilled staff can be harder to find. Both belong in the business plan.
Where the interior fits best
Food and farming. Processing close to where the product grows, with PEPAC for the farm and Portugal 2030 for the processing. RFAI leaves out the processing of most farm products, such as wine, olive oil and cheese.
Rural tourism. The local action groups fund small projects, and the tourism lines apply everywhere. See tourism funding.
Manufacturing. Land and labour cost less, the grant budgets are separate, and RFAI is at its highest rate. See setting up production.
Remote and technology work. The tax rate and the hiring uplifts apply, and the relocation payment helps with the team.
Frequently asked questions
Does Portugal pay you to move there?
Portugal pays a relocation amount to people who move to an interior territory to work or to run their own business: EUR 3,759.91 with a permanent contract or own business, plus 20% for each household member and EUR 805.70 for moving costs. It is not a payment for moving to Portugal in general, and Lisbon, Porto and the coast are not covered. EU citizens qualify, and so do citizens of other countries who live in Portugal legally.
Is the reduced corporate tax rate automatic?
It applies to SMEs and small mid caps that carry on their activity in an interior territory and are managed from there, under the conditions of the Tax Benefits Statute. It covers the first EUR 50,000 of taxable profit. Above that, the general rate applies.
Are grant rates always higher in the interior?
Not always. What is common is a reserved budget, which means less competition for the same money, and in some calls extra points or a bonus. The rate itself is set in each call.
How do I know if a municipality is on the list?
Tell us the municipality and the parish. The interior list is set by ministerial order and the low-density list by the Portugal 2030 programmes, and we check both.
Official sources
The official texts are in Portuguese. The figures on this page were checked against them.
- Tax Benefits Statute (EBF), article 41-B (interior territories) (checked 18 September 2026)
- Corporate Income Tax Code (CIRC), article 87, as amended by Law 64/2025 (checked 18 September 2026)
- IEFP: +Emprego measure (iefponline) (checked 18 September 2026)
- IEFP: Emprego Interior MAIS (iefponline) (checked 18 September 2026)
- Investment Tax Code (CFI), article 23 (RFAI: tax benefits) (checked 18 September 2026)
- Ministerial Order (Portaria) 208/2017: list of interior territories (Diário da República)
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