Local Economic Base

Objective

Investment projects aimed at satisfying the local market and boosting the internal market, with investments of more than €50,000, aimed at strengthening the productivity and competitiveness of companies by promoting integrated investment approaches, developed by commercial companies of any legal nature, complementary groupings of companies, cooperatives, or sole proprietors (SMEs only), which fall within the activities referred to below, are eligible for support.

Recipients

Sole proprietors, commercial companies of any legal nature, co-operatives and complementary enterprise groupings.

Requirements

Among other conditions, promoters must:

1. Fulfil the criteria of a small and medium-sized enterprise (SME);
2. Present a minimum financial autonomy in the pre-project year of 20%.

Among other conditions, projects must:

1. Be initiated after the submission of the application, with the exception of the acquisition of land and buildings and the preparation of studies directly associated with the project;
2. Have secured sources of funding and be financed by the promoter with a minimum percentage of 20% equity;
3. Have a maximum implementation duration of three years, or two years for projects up to €200 thousand.

Support

Non-repayable incentive of 35% for the islands of S. Miguel and Terceira, 40% for the islands of Faial and Pico and for the municipalities of Nordeste, Vila Franca do Campo and Povoação, on the island of São Miguel and 45% for the islands of Santa Maria, Graciosa, São Jorge, Flores and Corvo.

A realisation premium may be granted to projects, which consists of an increase of up to 20% to the non-refundable incentive rate.

The maximum amount of incentive to be granted per project is €4 million.

Payment Modality

Payments are made in the form of advance, reimbursement, and final payment.

Eligible activities

10. Food industries
11. Beverage industry

13. Manufacture of textiles
14. Clothing industry
15. Manufacture of leather and other leather products
16. Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials
17. Manufacture of pulp, paper, paperboard and articles thereof
18. Printing and reproduction of recorded media. With the exception of 182 Reproduction of recorded media and 1811 Printing of newspapers.

20. Manufacture of chemical products and man-made fibres, except pharmaceutical products
21. Manufacture of basic pharmaceutical products and pharmaceutical preparations
22. Manufacture of rubber and plastic products. With the exception of 222 Manufacture of articles of plastics.
23. Manufacture of other non-metallic mineral product
24. Manufacture of basic metals. With the exception of 241 Manufacture of iron and steel products
25. Manufacture of fabricated metal products, except machinery and equipment
26. Manufacture of computer, electronic and optical products and communications equipment
27. Manufacture of electrical equipment
28. Manufacture of machinery and equipment n.e.c.
29. Manufacture of motor vehicles, trailers, semi-trailers and components for motor vehicles
30. Manufacture of other transport equipment
31. Manufacture of furniture and mattresses
32. Other manufacturing
33. Repair, maintenance and installation of machinery and equipment

39. Decontamination and similar activities

42. Civil engineering
43. Specialised construction activities

45. Sale, maintenance and repair of motor vehicles and motorbikes
46. Wholesale trade (including agents), except of motor vehicles and motorbikes. Eligible investment up to €350 thousand. With regard to divisions 45 and 46, investment projects for setting up in industrial parks or zones and modernisation of establishments in existing buildings are eligible for support. Commercial establishments in shopping centres or department stores are excluded.
47. Retail trade, except of motor vehicles and motorbikes. Eligible investment up to €350 thousand. With regard to division 47, investment projects for the installation and modernisation of commercial establishments in existing buildings, located in urban centres, in areas geographically delimited by the City Council, or located in areas that clearly show market failures, are eligible for support. Commercial establishments located in shopping centres or department stores are excluded.

56. Catering and similar. Eligible investment up to €500 thousand. Projects for the installation, modernisation or extension of existing buildings are eligible for support. Commercial establishments located in shopping centres or department stores are excluded. All the following services: Eligible investment up to €500 thousand.

62. Computer consultancy and programming and related activities

71. Architectural, engineering, and related technical activities; technical testing and analysis activities

74. Other professional, scientific, and technical activities and similar activities
75. Veterinary activities. Only modernisation projects are eligible for support.

78. Employment activities

88. Social work activities without accommodation

95. Repair of computers and personal and household goods

412. Construction of buildings (residential and non-residential)

521. Storage

592. Sound recording and music publishing activities

631. Data processing, information hosting and related activities; web portals

812. Cleaning activities
813. Planting and maintenance of gardens activities

5911. Motion picture, video, and television programme production activities
5912. Post-production technical activities for motion pictures, videos and television programmes

86230. Dental practice and dentistry activities. Only modernisation projects are eligible for support.

86903. Nursing activities

86906. Other human health activities n.e.c.

90020. Support activities for the performing arts

93130. Gymnasium (fitness) activities

96040. Physical well-being activities

This Incentive Measure does not cover investment projects related to the primary production of agricultural products listed in Annex I to the Treaty on the Functioning of the European Union.