Posted by: José Inácio & filed under Properties General Info.

Currently, there are several incentives for construction and renovation of tourist enterprises available, such as:

1. QREN (Quadro de Referência Estratégico Nacional – National Strategic Reference Framework): This incentive is refundable without interest, with a maximum grant rate of 65% of the eligible investment. The repayment terms vary between 10 and 7 years, with a grace period up to 3 years, depending on whether it is for construction or remodeling purposes. Depending on the achievement of certain goals (completion period, results of operations, creation of jobs and international overnight stays) an achievement award for a maximum of 75% of the eligible investment can be given, which means a debt forgiveness of a substantial part of the funding. These incentives apply all over Portugal, except the Lisbon region (NUT II Lisbon);

2. JESSICA: is intended to support the creation and upgrading of tourist enterprises strictly located in urban areas, including those located in the Lisbon area. The maximum amount of funding is 50% of the eligible investment, with a maximum repayment period of 15 years (including a grace period of up to 4 years). The interest rate associated with the funding corresponds to the 6-month Euribor plus a maximum spread of 2.5%;

3. Banking Protocols: programme created by the national tourism authority “Turismo de Portugal” and the banking sector, which prioritizes the requalification of tourist enterprises. The maximum funding amounts to 75% of the eligible investment, being split equally between the bank and “Turismo de Portugal”. The interest rate associated with the financed part by “Turismo de Portugal” corresponds to the 6-month Euribor. Regarding the financing given by the bank, the interest rate to be applied is the one resulting from the analysis of the operation. The maximum repayment period is set at 10 years with a grace period up to 3 years;

4. PRODER: designed exclusively for small initiatives started in rural areas, mainly rural tourism projects. The maximum value of the eligible investment is € 300,000.00. Up to a maximum of 60% of the eligible costs are not repayable with this promotion.

It is worth to mention, that these financial incentives are valid for the year 2013. For the period 2014-2020 negotiations are still taking place between the Portuguese Government and the European Union, which will eventually result in the next Community Support Framework.


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