AICEP – Portuguese Trade & Investment Agency is a public body aimed at the development of a competitive business environment that contributes to the globalization of the Portuguese economy. The agency has a dual mandate in terms of contributing to an efficient business environment and the overall debureaucratization of the administrative panorama because, on one hand, it is statutorily mandated to do so by Decree-Law n. º 229/2012, of October 26th, and because it coordinates the Investment Committee, which oversees different kinds of investment projects.
The Investment Committee (Comissão Permanente de Apoio ao Investidor – CPAI) is to provide ongoing assistance and support to investors, as well as monitor investment projects by ensuring compliance with the relevant regulations and policies.
The Composition of the Investment Committee
The Investment Committee is composed of technical Institutions from all relevant ministries, such as AICEP, which carries out the technical secretariat for the Committee, IAPMEI, Turismo de Portugal, Territorial Development and Coordination Committees, Portuguese Environmental Agency, Forest and Nature Conservation Institute, Employment Institute, Tributary and Customs Authority and the Directorate General for Economic Activities. This Commission is a forum that engenders coordination to implement the procedures that arise on each project, as well as provide some guidance to the investors and facilitate the investment process, whenever possible.
The Committee also invites external entities to join the meetings, namely the city hall that is territorially competent for each project, experts, or other sectorial institutions that each project could benefit from.
The Role of the Investment Committee
The role of the Investment Committee is to monitor projects considered relevant to boosting the national economy, including projects classified as being of Potential National Interest (PIN), Investment Projects for the Interior (PII), and CPAI Monitored Projects, for which procedures are established and mechanisms are streamlined.
By ensuring close monitoring of all licenses, authorizations, or approvals within the competence of the central and local administration to implement a project, the outcome will be a rapid response from the public administration entities. This is the main advantage of a project being classified as PIN/PII/CPAI Monitored Projects by the Investment Committee: transparency of the procedural steps required to license the project, as well as coordination between all institutions. <
On top of that, if the Investment Committee can’t implement a particular procedure from a technical standpoint (due to lack of suitable legislation, for example), it can also report it to the Committee for Economic and Investment Affairs: this is a committee which is more political, as it includes representatives from different ministries and secretaries of state.
Lastly, the monitoring of an investment project’s licensing procedures is carried out by its project manager, which can be either AICEP, IAPMEI, or Turismo de Portugal, depending on the volume of investment and the project type. To do so, the project manager relies on the chronogram, previously approved by the competent entities. This is a tool that comprises all the licensing process and its legal deadlines, which are then thoroughly monitored, as well as describes all the institutions involved at each stage, resulting in accountability. Typically, the chronogram includes four vectors: 1) territorial planning, 2) environmental, 3) urban operations, and, finally, 4) that of the activity itself, as applicable.
To benefit from the Investment Committee’s monitoring, the investor has at his disposal the following applications:
Projects Monitored by CPAI
This type of application it’s the least restrictive in quantitative terms, and therefore the one that would apply to the projects that cannot fulfil the threshold for investment or job creation that is seen in the remaining types of application.
The Investment Committee can monitor a project if it meets the following requirements:
• There is no minimal threshold for either the investment amount or the number of jobs created, as opposed to the previous types of projects (PIN and PII).
• The project must have proven economic viability.
• The project must be susceptible to adequate environmental and territorial sustainability.
• Present a positive impact in at least three of the following areas:
a. Installation of a production base, with strong national incorporation, creating gross added value.
b. Production of tradable goods and services, of an innovative nature, which provides for a competitive advantage in the global market.
c. Introduction of innovative technological processes or those developed in collaboration with recognized entities in the scientific and technological system.
d. Insertion into the region's intelligent specialization strategy and/or contribution to the dynamization of territories with low economic density.
e. External economic balance, namely the increase in exports or the reduction in imports.
f. Energy efficiency or favouring renewable energy sources.
g. Knock-on effects on upstream or downstream activities, particularly in small and medium-sized companies.
• The legal framework applicable for this type of project is the general regime established by Decree-Law n. º 154/2013, of November 5th which, as opposed to the PIN and PII applications, does not confer the possibility of one single period of public consultation for the various administrative procedures, simplification of territorial management plans’ procedures, deadline reductions, and simultaneity of procedures, whenever possible.
It should be, however, noted that the granting of any of these statuses does not provide any type of financial incentive or tax benefit, and applicable legislation must be followed for this purpose.
Projects of Potential National Interest - PIN APPLICATION
A project can be deemed to have a Potential National Interest (PIN) if it meets the following requirements:
• Represent a global investment equal to or greater than 25 million euros.
• Create a number of direct jobs equal to or greater than 50.
• Are presented by promoters of recognized suitability and credibility.
• Have proven economic viability.
• Are susceptible to adequate environmental and territorial sustainability.
• If the threshold for investment or job creation is not met, a project may also be recognized as PIN exceptionally, provided that it meets two of the following requirements:
1. The Internal Research and Development (R&D) activity worth at least 10% of the company's turnover
2. There is a strong component of applied innovation, translated into a significant part of its activity anchored in patents developed by the company.
3. The project is deemed to have a manifest environmental interest.
4. There is a strong export vocation, translated by a minimum of 50% of its turnover directed to the international market.
5. There is relevant production of tradable goods and services.
• The legal framework applicable for this type of project is the special regime established by Decree-Law n. º 154/2013, of November 5th, which confers the possibility of one single period of public consultation for the various administrative procedures, simplification of territorial management plans’ procedures, deadline reductions and simultaneity of procedures, whenever feasible.
Investment Projects for the Interior - PII APPLICATION
A project can be considered as an Investment Project for the Interior (PII) if it meets the following requirements:
• This application is directed to projects that aim to dynamize the interior part of Portugal and whose location is discriminated on the following list.
• Represent a global investment equal to or greater than 10 million euros.
• Create a number of direct jobs equal to or greater than 25.
• Have proven economic viability.
• Are susceptible to adequate environmental and territorial sustainability.
• Have a positive impact on at least three of the following areas:
>i) Use of endogenous resources of the region in which they are located.
ii) Enhancement of the region’s natural or cultural heritage.
iii) Insertion into the region’s specialization strategy.
iv) Production of tradable goods and services, of an innovative nature, which provides for a competitive advantage in the global market.
v) Introduction of innovative technological processes or those developed in collaboration with entities from the regional scientific and technological system.
vi) Knock-on effects on upstream or downstream activities, particularly in small and micro-enterprises in the region in which they operate.
• If the threshold for investment or jobs created is not met, a project may also be recognized as PII exceptionally, provided that it meets three of the following requirements:
1. The project has a Declaration of Recognition of Municipal Interest.
2. The project is deemed to have a manifest social and environmental interest.
3. The Internal Research and Development activity is worth at least 5% of the company's turnover.
4. There is a strong component of applied innovation, which proves the introduction and development of technological processes carried out in collaboration with recognized entities in the scientific and technological system.
5. The project is deemed to have an installation of a production base, with strong regional incorporation - competitiveness clusters - creating gross added value.
6. It is a diaspora investment project.
• For more information, please check out Decree-Law n.º 111/2018, of December 11th here.
• The legal framework applicable for this type of projects is the special regime established by Decree-Law n. º 154/2013, of November 5th, which confers the possibility of one single period of public consultation for the various administrative procedures, simplification of territorial management plans’ procedures, deadline reductions and simultaneity of procedures, whenever feasible.
How to Submit an Application
To submit an application, please refer to the following link.
In order to submit applications at Balcão do Empreendedor, private windows in Firefox or Google Chrome browsers are advised, with a preference for the former. Internet Explorer is not recommended for this platform.
For additional information, please contact secpin@portugalglobal.pt.
