Portuguese companies continue to increase investment in R&D in the 2025 tax year

Investment in Research and Development (R&D) remains a key driver of competitiveness across the Portuguese economy. Preliminary data for the 2025 tax year under the Corporate R&D Tax Incentive Scheme (SIFIDE), released by Portugal’s National Innovation Agency (ANI), show that businesses continue to invest steadily in innovation while making increasing use of the scheme to support their R&D activities.

Compared with the 2024 tax year, the number of applications received, the value of declared R&D investment and the amount of tax credit claimed all increased, underlining the growing use of SIFIDE by Portuguese businesses.

KEY INDICATORS | 2025 TAX YEAR

Although these figures relate to applications received rather than the outcome of their assessment, they point to a clear trend: companies are continuing to embed R&D within their growth strategies, recognising innovation as a key factor in strengthening competitiveness, developing new technologies and responding to changing market demands.

R&D INVESTMENT CONTINUES TO GROW

The 2025 tax year figures show that growth extends beyond the number of applications. Declared R&D investment exceeded €2.35 billion, representing an increase of around €220 million compared with the previous tax year, while the value of tax credit claimed rose by approximately 10.1%.

This represents a further increase in declared business investment in Research and Development, in a tax year that saw growth both in the number of applications received and in the overall value of the investment associated with them.

At the same time, average declared investment per application remained relatively stable, decreasing from €662,400 in 2024 to €648,500 in 2025. Despite the strong increase in the number of applications, the average financial scale of projects therefore remained close to the level recorded in the previous tax year.

GROWTH ACROSS BUSINESSES OF DIFFERENT SIZES

The increase in activity spans companies of different sizes, confirming broad participation in SIFIDE across the Portuguese business landscape.

Large enterprises recorded the strongest growth in the number of applications, rising from 1,738 to 2,045, an increase of approximately 17.7%. Small and medium-sized enterprises also increased their use of SIFIDE, with the number of applications rising by 8.8% and 7.9%, respectively, while micro-enterprises recorded more moderate growth, from 214 to 219 applications.

These figures show that the increase in SIFIDE applications in 2025 was recorded across businesses of different sizes, although it was particularly pronounced among large enterprises.

SIFIDE CONTINUES TO PLAY A STRATEGIC ROLE IN SUPPORTING INNOVATION

As businesses respond to digital transformation, artificial intelligence, the transition to a low-carbon economy and intensifying global competition, the ability to invest in R&D has become increasingly important.

Against this backdrop, SIFIDE continues to play a central role in supporting business innovation, complementing funding programmes such as Portugal 2030, Horizon Europe and the STEP Initiative. The combination of tax incentives and public funding helps reduce the financial commitment associated with R&D activities while creating better conditions for companies to pursue projects with greater technological impact.

Today, SIFIDE represents more than a tax incentive. It has become an important strategic instrument that enables businesses to plan and structure investment in Research and Development with greater predictability and long-term financial sustainability.

A TREND THAT STRENGTHENS THE COMPETITIVENESS OF PORTUGUESE BUSINESSES

Preliminary data for the 2025 tax year confirm a further increase in declared business investment in Research and Development. Although applications are still undergoing assessment, the available figures show a 12.7% increase in applications received, a 10.3% rise in declared R&D investment and a 10.1% increase in tax credit claimed compared with the 2024 tax year.

As the economy becomes increasingly knowledge-driven, the ability to transform research into new products, processes and technologies will remain one of the key drivers of differentiation and value creation for Portuguese businesses.

Data sources