Portugal Extends SIFIDE II R&D Incentive for Direct Investment

Portugal has published Decree-Law No 170/2026 of 21 August 2026 in the Official Gazette, which extends the SIFIDE II R&D Incentive for R&D investments made until 31 December 2026. The incentive provides a direct tax deduction (essentially a credit) equal to a base amount of 32.5% of R&D investments made, which is increased in certain cases, including where there is a year-on-year increase in R&D investments. Historically, the incentive has been provided for direct in-house R&…