RFAI — Tax Regime for Productive Investment
A corporate tax benefit that rewards productive investment with a direct deduction from your IRC bill — broadly comparable to Productive Innovation, but delivered through tax relief instead of a cash grant.
What is RFAI?
RFAI (Regime Fiscal de Apoio ao Investimento) is a tax incentive under Portugal's Investment Tax Code, broadly comparable in scope to the Productive Innovation incentive system — but delivered through corporate tax benefits instead of a direct cash grant. Eligible companies deduct a percentage of their qualifying investment directly from the tax due on their annual corporate income tax (IRC) return.
What counts as eligible investment
Which projects qualify
Creation of a new establishment
Increase in the capacity of an existing establishment
Diversification of production into products or services not previously produced
Fundamental change to the overall production process of an existing establishment
Which costs you can include
Tangible fixed assets
New machinery, equipment, industrial buildings and IT hardware, acquired new and directly allocated to the investment project.
Intangible assets
Patents, licences, know-how and software, capped at 50% of eligible investment for large companies.
Excluded expenses
Light passenger vehicles, furniture, decorative items, individual assets below €1,000, and land (except in specific extractive-industry cases).
Complementary relief
IMI, IMT and Stamp Duty exemptions on assets tied to the investment, subject to municipal recognition.
Note: RFAI is a corporate tax benefit — not a cash grant. It reduces the tax you owe rather than paying out funds.
What is the benefit?
You deduct a share of the investment straight off the tax you owe. If the credit is larger than that year's tax bill, the remainder is not lost — it carries forward.
| Deduction rate | 25% of investment up to €15M · 10% on anything above |
| Annual ceiling | 25–50% of the IRC due that year — the higher end for micro and small companies |
| Unused credit | Carried forward 10 years — 15 years in interior territories |
| Property taxes | IMI, IMT and Stamp Duty exemptions for up to 10 years on assets tied to the investment |
Rates, ceilings and carryforward periods are set annually by the State Budget Law — current figures are indicative; confirm the applicable tax year with Elyntis.
What Elyntis delivers under this regime
RFAI rewards investment that genuinely creates, expands or transforms an establishment — and software, IT hardware and licences are eligible assets in their own right. We build the digital part of that investment, and make sure it is documented the way a tax benefit has to be documented.
Software as an intangible asset
Custom platforms, MES and ERP integrations built and capitalised as intangible assets allocated to the project.
IT hardware & network
Servers, edge devices and networking specified, procured new and deployed as tangible fixed assets.
Evidence of added capacity
Instrumentation and reporting that show, in numbers, the capacity increase or diversification your project claims.
Fundamental process change
Automation and system integration substantial enough to support a change-of-process typology, not a refresh.
Asset-level documentation
Quotations and invoices itemised per asset, so your accounting identifies the project and clears the €1,000 threshold test.
Support through the holding period
Maintenance and records that keep the assets in service and auditable for the full 3–5 year retention requirement.
We are an engineering partner, not your tax adviser — the deduction is claimed by you, with your accountant. What we own is the technical scope, the asset documentation behind it, and its defensibility if the Tax Authority asks.
Convert productive investment into tax savings.
Count on Elyntis to assess your eligibility and structure your RFAI claim.
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