SIFIDE in the Healthcare Sector: An Engine for Innovation and Competitiveness

Innovation in the healthcare area has never been so decisive for the sustainable development of the sector. In 2023, the healthcare sector represented 19.3% of R&D investment in Europe, consolidating itself as the second largest investment hub, only behind the automotive sector​.

The commitment to Research & Development (R&D) has allowed significant advances in biotechnology, pharmaceutical production, and the development of medical devices. However, many companies are still unaware of one of the biggest drivers of innovation in Portugal: SIFIDE (Tax Incentive System for Corporate Research and Development).

Why Invest in R&D in the Healthcare Sector?

The healthcare sector is at a crossroads between innovation and regulatory requirements. From biotechnology to pharmaceutical production, through the development of medical devices and the digitalisation of health, the ability to innovate not only defines the competitiveness of companies but can also represent a significant tax advantage. SIFIDE allows innovation expenses to be transformed into tax credits, reducing the tax burden and increasing reinvestment capacity.

According to the 2024 EU Industrial R&D Investment Scoreboard report, some of the companies investing most in innovation in Europe are from the healthcare area, such as Novo Nordisk, Genmab, and Medtronic, reinforcing the importance of the sector in the European landscape.

But in Portugal, there are also excellent examples of national companies such as BIAL, which leads R&D investment in Portugal with over 80 million annually, or Hovione, with 23 patents approved by the FDA (2016-2023).

Examples of SIFIDE Application in the Healthcare Sector

In Portugal, several companies in the healthcare sector have turned to SIFIDE to leverage their R&D investments.

Below are some examples of approved projects, demonstrating how this tax incentive can boost innovation:

• Biotechnology and Development of New Medicines
• Artificial Intelligence Applied to Clinical Diagnosis
• Medical Devices and Wearable Technologies
• Sustainable Pharmaceutical Manufacturing
• 3D Bioprinting for Personalised Medicine

Advantages of SIFIDE for Healthcare Companies

• Reduction of tax burden: Allows deducting up to 82.5% of R&D costs from Corporate Income Tax (IRC).
• Optimisation of investments: Maximises the return on innovation spending.
• Stimulus for innovation: Supports the development of new products and technologies.
• Greater competitiveness: Allows companies to differentiate themselves in the global market.
• Talent Attraction: Boosts the companies' ability to attract and retain highly qualified talent.

Opportunity for Healthcare Companies in Portugal

Healthcare sector companies investing in Research and Development can benefit considerably from SIFIDE to continue expanding their activities and increasing their competitiveness. Investment in R&D, in addition to ensuring tax incentives, is an engine of innovation that defines the future of the industry.

If your company develops innovative activities in the healthcare area, it is fundamental to evaluate the possibility of applying for SIFIDE and optimise your investments.

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Last update: 19 February 2025