SIFIDE: Innovation is happening. But it remains invisible

In 2023, Portugal broke records for SIFIDE applications. But, before we celebrate, it is worth looking at the numbers closely.

In 2023, there were 1,526,926 companies registered in Portugal. However, in the last 18 years, only 9,537 benefited from SIFIDE. This corresponds to 0.62% of the national business fabric. There is no denying it: something is failing.

Do only these 9,537 companies innovate? Certainly not!

What is happening is more serious: companies innovate, but do not know they are doing so. And, therefore, they do not take advantage of the tax benefit that exists exactly to support them.

SIFIDE is not just for tech companies and laboratories.

SIFIDE – Tax Incentive System for Business Innovation and Development allows companies to deduct up to 82.5% of eligible expenses in R&D activities from IRC (Corporate Income Tax).

And we are not just talking about large scientific projects.

We are talking about:

• Developing new software;
• Improving an internal process;
• Creating a more efficient product;
• Conducting tests, trials, proofs of concept.

This is innovation. This is R&D.

But most companies do not recognise it as such — and the result is what we see: money is lost. Vision is lost. Ambition is lost.

SIFIDE is not the problem. It is part of the solution.

SIFIDE is retroactive. It applies to what the company has already done. It does not depend on calls for applications or budget approval, nor does it require new investments.

Furthermore, it is compatible with financial incentives, such as support for Business R&D, under the scope of Portugal 2030.

But there is an obstacle: the technical complexity of the process, especially in identifying eligible expenses and preparing applications.

This is where the support of specialised teams makes all the difference. It is not enough to know the law. One must know the business. Translate projects into rationales. Connect innovation to taxation — with rigour and strategic vision.

It is not just a deduction in IRC. It is a window to the future.

Discussing the corporate tax burden is legitimate. But, in the case of SIFIDE, it is not the lack of measures that weighs. It is the lack of knowledge.

And the cost of a lack of knowledge is high: millions of euros that leave companies and could be reinvested.

Furthermore, SIFIDE does not just serve to return money to companies. It serves to map national innovation. To understand where the hubs of development are. To structure a more robust, more sustainable, more ambitious economy.

The deadline to submit the SIFIDE application ends on 31 May.

And the question that arises is not “can I benefit?”.

The right question is: “how much have I already lost by not having started yet?”

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