Share option plans in start-ups and changes to SIFIDE II

Entry into force of the Law

Following the approval of Law 21/2023, of 25 May, introduced a regulatory framework that fosters the development of companies with a business model that has a strong innovation component and potential for future growth.

Law 21/2023, of 25 May introduces the concepts of start-up and scale-up into the Portuguese legal system, and creates a set of specific investment and tax policies aimed at capitalising and attracting talent to these companies.

Furthermore, a set of significant amendments are introduced to the Tax Incentive System for Business Research and Development (Sistema de Incentivos Fiscais à Investigação e Desenvolvimento Empresarial, or ‘SIFIDE II’), which are intended to make research and development (‘R&D’) more attractive.