Incentives for Companies in Portugal in 2021: Support for Recovery and Growth

The year 2021 was marked by the implementation of several incentives e financial support for companies in Portugal, in a context of post-pandemic economic recovery. The government and various public institutions have launched a series of programmes to help companies to overcoming difficulties caused by the health crisis and to prepare its growth in a changing market. From direct cash support to incentives for innovation, these mechanisms have been fundamental to sustaining the business fabric.

Treasury and Liquidity Support

One of the major challenges faced by companies in 2021 was the lack of liquidity due to falling income and rising expenditure. To tackle this problem, the government has made various lines of credit and direct support available. These include:

• COVID-19 Economic Support LineThis line of credit is aimed at SME e large companies in sectors most affected by the pandemic, such as tourism, catering and commerce. With very favourable financing conditions, the aim was to guarantee immediate liquidity to maintain activity.

• Extraordinary Support for Progressive Recovery: Aimed at companies with a significant drop in turnover, this support has enabled a temporary reduction in working hoursThis would compensate for the loss of workers' income and relieve staff costs.

Incentives for Innovation and Digitalisation

With the pandemic, the digitalisation and innovation have become essential for companies to adapt to the new market conditions. In 2021, various supports were made available so that companies could modernising your processes e adopting digital technologies. The main incentives include:

• Portugal 2020This European programme has continued to be one of the main sources of funding for innovation projects, internationalisation e research. Companies could access funds to invest in new technologies, digital transformation e process optimisation productive.

• Adapt Programme: Created to help companies adapt to the new health requirementsThe programme provided financial support for the implementation of safety measures in the context of the pandemic, such as the purchase of protective equipment, disinfection and the reorganisation of spaces.

Incentives for Sustainability and Energy Transition

In 2021, the incentives for sustainability e energy transition have gained prominence, in line with Portugal's commitments regarding the Agenda 2030 and Paris Agreement. The companies had access to various supports for reduce your ecological footprint e improving energy efficiencysuch as:

• Energy Transition Support Fund: Created to promote decarbonisation of the economy, this fund incentivised companies to invest in renewable energies, energy efficiency and circular economy.

• Support for investment in electric vehiclesWith the aim of reducing carbon emissions, incentives have been made available to purchase of electric vehicles and the installation of charging infrastructurespromoting more sustainable mobility.

Support for Employment and Qualification

Maintaining jobs and guaranteeing qualification of workers was a priority in 2021. To this end, the government has implemented several programmes aimed at supporting employment and continuous trainingsuch as:

• Encouraging the Standardisation of Business Activity: This incentive was created to support companies in the maintaining jobsThis was done with financial support that could be converted into a non-refundable subsidy.

• Qualify: A programme that provided support to companies for the training and retraining of its employeesby improving their skills and adapting them to the demands of the modern market.

Conclusion

In 2021, the Portuguese government focussed on providing companies with the tools they need to overcoming challenges imposed by the pandemic and prepare for their future. The support covered crucial areas such as liquidity, innovation, digitalisation, sustainability e employmentallowing companies to adapt and grow in a constantly changing market. These incentives have been fundamental in maintaining resilience of the Portuguese entrepreneurial fabric and to support its transition to a more modern and sustainable economic model.