The Portuguese Government will improve taxation on revenue from the sale of intellectual property, hoping to attract more technology companies to the country.
The Government will try to attract more startups and tech companies to Portugal through a tax relief on revenues from the sale of intellectual property.
In the draft State Budget (OE) for 2022, the Executive proposes to change the IRC Code to increase from 50% to 85% the tax exemption on royalties and any revenue from the exploitation of intellectual property, including the sale of software.
This measure was already part of the proposed State Budget that was rejected by Parliament last year, but the Government recovered it, including it in the new proposal delivered to Parliament on Wednesday, now with guaranteed approval by the Socialist Party’s absolute majority.
In addition, the Government is preparing to review the tax regime of stock options for tech startups. The aim is to align Portuguese taxation with “the best European practices”, which will translate into an IRS benefit for workers who receive shares in the company they work for as part of their remuneration package.