Tax Benefits



CIT – Extraordinary support to expenses with electricity and gas

Maintenance of the additional 20% deduction of the costs and losses incurred or borne with the consumption of electricity and natural gas, for the purposes of the assessment of the 2023 and 2024 taxable profit.

It is established that expenses and losses incurred by taxpayers who begin their activity in the tax period prior to the application of the regime must be proportional to the period of activity of the taxpayer in that year.

The deduction related with the 2023 and 2024 costs will not be considered for the purpose of the minimum tax assessment safeguard clause under Article 92 of the CIT Code. The same applies to the 2022 deduction.

CIT – Extraordinary support to costs incurred in agriculture

Maintenance of the additional 40% deduction of costs and losses incurred or borne with the acquisition of certain assets used in agricultural production activities, for the purposes of the assessment of the 2024 taxable profit.

It will be possible to carry forward for the ten following tax years the additional deduction that cannot apply in the 2024 tax year, given the minimum tax assessment  safeguard clause foreseen in Article 92 of the CIT Code.

CIT – Contractual tax benefits to productive investment and Tax Regime for Investment Support (“Regime Fiscal de Apoio ao Investimento” or “RFAI”) 

Salary costs incurred with the hiring of employees with a master degree or a PHD are now eligible. The jobs created shall be kept for a minimum five year period (three years in the case of small and medium sized companies). 

For RFAI purposes and in the case of companies that do not qualify as micro, small or medium sized companies, salary costs and investment in intangibles cannot exceed 50% of the eligible expenses.

“Costs incurred with salaries resulting from the hiring of employees with a master degree or a PHD are eligible for the Tax Regime for Investment Support.”

CIT – Tax incentive to wage increase  (“Incentivo à Valorização Salarial”)

Salary increases will no longer need to be determined through a collective dynamic labour agreement instrument (“IRCT”). The minimum increase for 2024 shall be 5% (ormerly, 5.1%).

The salary range shall be computed based on the ratio between the amount of the portion of the annual fixed salary of 10% of the employees with higher remunerations and 10% of the employees with lower remunerations, with reference to the total amount. 

Costs incurred with board members shall be eligible. However employees that are part of the household of shareholders with qualified majority of the capital of the company are not eligible.

There will be a transitional period establishing that in the 2023 and 2024 tax years the concept of IRCT includes both the extension decree and the labour conditions decree.

CIT – Tax Regime of the Incentive to the Capitalization of Companies (“Incentivo à Capitalização das Empresas” or “ICE”)

The annual deduction shall result from applying a variable rate corresponding to the average 12 month Euribor rate in the tax year concerned,increased by a spread of 1.5 percentage points or 2 percentage points in the case of small and medium size companies and small medium capitalization companies (Small Mid Cap).

For the purpose of assessing the tax benefit, the amount corresponding to the eligible net increases in equity will include the tax year concerned as well as the six previous tax years (formerly the tax year concerned and the nine previous tax years).

There is an additional deduction of 50%, 30% and 20% respectively in the 2024, 2025 and 2026 tax years.

The annual deduction limit is updated to € 4,000,000 (formerly €2,000,000).

“The Tax Regime of the Incentive to the Capitalization of Companies (“ICE”) shall be computed with reference to the 12 month Euribor rate increased by 1.5% (2% in the case of small and medium sized companies and small medium capitalization companies).”

CIT – Agreements and cooperation relations

An exemption from CIT shall apply to public entities that promote education, culture and science under international cooperation agreements. This requires that there is reciprocity duly certified by the competent foreign tax affairs Governmental body.

CIT – Tax incentive to the renewal of transport fleets

An exemption from CIT shall apply to the positive balance between capital gains and capital losses assessed in the 2024 tax year, derived from the transfer of certain freight vehicles acquired prior to 1 July 2021 whose first licence is prior to that date.

The exemption requires the reinvestment in 2024 or 2025 of the full amount of the sales proceeds.

Eligible vehicles must be kept for five years.

CIT - Madeira International Business Center

The licensing date for entities in the Madeira International Business Center is extended until 31 December 2024 (previously, 31 December 2023). 

The Madeira International Business Center regime is further extended until 31 December 2028 (previously, 31 December 2027).

CIT – Incentives for the sale of properties to the State

Gains arising from the sale of land for construction to the State, the Autonomous Regions, public business entities in the housing sector or local authorities are now exempt from CIT.



The following tax benefits included in the Tax Benefits Code are extended for one year, that otherwise would expire on 1 January 2024:

  • deductions related to partnerships of titles with social impact (Article 19-A).

  • tax incentives to forest activity (Article 59-D).

  • forest management entities and units (Article 59-G).

  • cinema and audiovisual production (Article 59-H).

  • electric solar and exclusively electric vessels (Article 59-J).

Capital gains realised by non residents

The benefit that provides for an exemption from taxation of capital gains realised by non-residents with the transfer of shares, other securities, autonomous warrants and derivatives in stock exchange markets is no longer subject to the general rule that foresees the term of tax benefits within five years.

Incentive for the scrapping of light vehicles

The incentive program for the scrapping of light vehicles is created, the monetary value of which, to be attributed by the Environmental Fund for each light vehicle scrapped, will be defined by order of the member of the Government responsible for the area of the environment and climate action .


Deduction of expenses for the acquisition or rental of musical instruments 

In 2024, the Government will study solutions to allow education and training expenses to be considered as education and training expenses eligible for PIT deduction, the expenses for the acquisition or rental of musical instruments that constitute teaching material within the scope of attendance school of articulated, integrated or supplementary music education, professional instrumentalist course or higher education music course.


Contact us

Rosa Areias

Rosa Areias

Tax Lead Partner | Entrepreneurial & Private Business Leader | Membro da Comissão Executiva, PwC Portugal

Tel: +351 225 433 101