Investment Opportunities in the Azores

Transcription

1 Investment Opportunities in the Azores December 2014 Arnaldo Machado 1

2 Are you interested in investing? There is future in the Azores! SDEA is a privileged interlocutor for your investment projects 2

3 SDEA Azores Business Development Society MISSION Design and execute business incentive measures, aimed to reinforce the Azorean companies competitiveness, as well as to promote innovation and entrepreneurship. 3

4 Main Assignments of SDEA - Promotion of the Region s economic potential; - Attraction of foreign investment; - Promotion of the regional products and the endogenous resources; - Design of investment incentives and tax benefits policy; - Development of financial instruments for business support; - Promotion of entrepreneurship and innovation. 4

5 What do we offer? 5

6 What do we offer? Geostrategical Location Situated halfway between Europe and North America Political and Social stability Available Resources Unique conditions for Tourism Abundant water resources Potential for diversified agricultural activities Excellent communications Qualified human resources Friendly Business Environment Attractive incentives for investments Employment support measures Tax benefits 6

7 Learn about our Investment Opportunities 7

8 Tourism 8

9 Tourism Awards and distinctions Forbes magazine classified the Azores as One of the world s most unique travel destination BBC Travel reported Pico Island as One of the 5 best secret islands in the world. World Travel Guide classified Furnas (São Miguel) as One of the 5 most attractive volcanic areas in the world. National Geographic elected Azores as One of the 10 best 2011 summer trips. 9

10 Tourism Awards and distinctions Lonely Planet considered the Azores to be One of the best destinations worldwide. The Sunday Telegraph considered the Azores to be One of the best places in the world for whale watching. BootsnALL elected the pedestrian path of Criação Velha vineyards (Pico Island) as One of the 8 unique tracks in the world". 10

11 Golf The Azores were considered by the International Golf Travel Market as one of the best undiscovered golf destinations, becoming one of two locations in Europe which received this distinction. 11

12 Health and Wellbeing The Azores offer investment potential in the areas of health and wellbeing tourism, particularly in the aspects of health promotion, prevention and maintenance, as well as rest and leisure. Investments in these areas may include: Specialist clinics SPAs Hot Springs 12

13 Hot Springs The use of these thermal resources involves: Exploiting the characteristics of the waters for thermal use; Remodeling or building facilities according to their respective thermal potential, as well as the creation of top quality hotel units; Implementing programs that complement the thermal offer (Spas). In this area, are specially relevant the existing resources on the islands of São Miguel (Ferraria, Caldeiras da Ribeira Grande and Furnas), Graciosa (Carapacho) and Faial (Varadouro). 13

14 ANGRA MARINA HOTEL Activities Pedestrian excursions Mountaineering Canyoning Speleology Horseback Riding Mountain biking Jeep Tours 14

15 ANGRA MARINA HOTEL Activities Bird watching Whale Watching Scuba diving Kayaks Boating Fishing 15

16 ANGRA MARINA HOTEL GASTRONOMY 16

17 Agriculture & Food Industry 17

18 Agriculture The farming sector occupies an important place in the economy of the whole archipelago, presenting a broad range of products with enormous potential for export. There are 3 well-defined wine-growing regions, producing certified wines which are internationally recognized. The islands are also the second largest producer of proteas in the E.U. 18

19 Dairy Products The way the cattle is raised and fed, gives the milk and its derivatives a high biological value with exceptional nutritional quality. Milk production in the Azores - Represents about 31% of the total cow milk commercialized in Portugal. Cheese production in the Azores - Represents about 50% of the total national production. The Azores offer varied products in this sector such as: milk, cheese, cream, butter and yoghurt. 19

20 The Canning Industry in the Azores Four canning industries operating in the Azores, actually. International prizes and recognitions, in the form of notable awards for its products, give them today visibility in the major gourmet shops. Main international markets: Italy and Spain. The Tea Industry in the Azores The Azores are the only producer of tea in Europe. The two factories occupy about 40 hectares with a production between 40 and 50 tons of tea per year. 20

21 Opportunities For market typical products, natural identity and quality, the Azores offer high quality natural products: Tea, Soft drinks and Mineral Water Wines and Liqueurs Canned tunna Dairy products and Cheese Meat Fruit (Pineapple and Passion fruit) Flowers 21

22 Sea Cluster 22

23 Sea Cluster The Azores Exclusive Economic Zone (E.E.Z.), represents 57% of the E.E.Z. of Portugal and approximately 30% of the E.E.Z. of Europe. The size of the Azores E.E.Z. is about Km 2. 23

24 The Maritime Economy - Traditional Activities: Fisheries, Aquaculture, Processing, Preserving and Marketing of fish and other sea foods Shipping and Maritime Transport Shipbuilding and Ship-repair activities Nautical Tourism, such as recreational boating, cruises, maritime sports and diving 24

25 The Maritime Economy - Emerging Activities: Blue Biotechnology Seabed exploration The Azores E.E.Z. is considered as a natural laboratory by the scientific community. The Department of Oceanography and Fisheries of the University of the Azores is an international reference in the field of Marine Sciences. 25

26 LOGISTICS AND BUSINESS SUPPORT SERVICES 26

27 Our place in the World Km (2.150 nautical miles) 5 ½ hours flight Km (830 nautical miles) 2 hours flight Km (3.270 nautical miles) Panamá Canal 27

28 The Azores have a huge potential for investments in the areas of Logistics and Business Support Services such as Call Centers and Data Centers. Available resources Atlantic Centrality Excellent communications network Human resources with good knowledge of the English language 28

29 The Azores are unique in their nature and culture, offering great financial benefits to those who want to invest locally, as well as security and unrivaled quality of life. Located in the middle of the Atlantic, only 4 hours away from North America and 2 hours from Europe, with more than 17 direct flights to different cities in both continents. If you are looking for an ideal place to live, the Azores are your new home. Welcome! Living in Azores is an informational channel for anyone who is interested in acquiring a home in the Region. 29

30 What advantages can we offer you? Friendly Business Environment Attractive incentives for investments Employment support measures Tax benefits 30

31 SYSTEM OF INCENTIVES FOR THE BUSINESS COMPETITIVENESS

32 The System of Incentives for the Business Competitiveness, Competir+ (Regional Legislative Decree No. 12/2014/A), is developed in seven subsystems: a) Subsystem of Incentives for the Promotion of Exports; b) Subsystem of Incentives for Internationalization; c) Subsystem of Incentives for Qualification and Innovation; d) Subsystem of Incentives for Qualified and Creative Entrepreneurship; e) Subsystem of Incentives for Local Development; f) Subsystem of Incentives for Sustainable Integrated Urbanism; g) Subsystem of Incentives for Support Business Efficiency. 32

33 Subsystem of Incentives for the Promotion of Exports Directed for projects aimed at the production of tradable goods and services, embodying the three major areas of specialization considered priority to the development of the Azores: - the agriculture and food industry, - tourism and - the economy of the sea. As well as other areas such as: - the manufacturing industry, - the digital economy and - logistics. 33

34 Subsystem of Incentives for the Promotion of Exports Incentive: - Non-refundable 30% for Terceira and São Miguel islands/ 35% Faial and Pico islands/ 40% Santa Maria, Graciosa, São Jorge, Flores and Corvo islands - Refundable 25% Performance award (transformation of refundable incentive into non-refundable) of: - up to 15%, for the creation of jobs - up to 10%, according to the project s economic productivity Increments (added to the non-refundable rate): - energy efficiency 2,5% - Regional Interest Project (PIR) 5% Maximum amount of incentive: - 5M non-refundable incentive + 5M refundable incentive There is no maximum investment limit but there are limits in absolute value of incentives per project 34

35 Subsystem of Incentives for the Internationalization Aims to strengthen the intraregional trade and the external competitiveness of Azorean companies. Allows the development of projects: - prospection of foreign markets; - commercialization and marketing; - promotion of online business; - logistics and warehousing. Support for the transport costs: - inter-islands and from Azores abroad ; - of Azorean products obtained or produced in the region. This subsystem of incentives is awaiting the European Commission's approval 35

36 Employment support measures There are several financial support measures either for internships or direct hiring. 36

37 Tax Benefits 37

38 Corporate Income Tax - CIT Mainland Portugal Azores Madeira 30% 25% 20% 15% 10% 5% 0% 23% 23% 18,4% Mainland Portugal Azores Madeira The Azores have the lowest CIT (IRC) in the country (20 % less that in Mainland Portugal) 38

39 Value Added Tax - VAT Mainland Portugal Azores Madeira 25% 23% 22% 20% 15% 10% 5% 6% 5% 5% 13% 10% 12% 18% 0% Reduced rate Intermediate rate Normal rate The Azorean VAT (IVA) is lower that in Mainland Portugal and Madeira islands 39

40 TAX BENEFITS UNDER CONTRACT REGIME (Regional Regulating Decree n. 9/2014/A of the 27 th June 2014). May be granted to investment projects of urban rehabilitation or projects of production of tradable goods and services recognized as strategic relevance projects, according to certain criteria and superior value of: 2 M in São Miguel and Terceira islands ; 0.4 M in Santa Maria, Graciosa, São Jorge, Pico, Faial, Flores and Corvo islands. Tax benefits may take the following forms: Deductions from Corporate Income Tax (IRC); Exemption or reduction of the Municipal Property Tax (IMI) rate; Exemption or reduction of the Municipal Property Transfer Tax (IMT) rate. 40

41 CONTEXT COSTS The Government of the Azores has been performing, systematically, a set of measures to reduce administrative costs, in order to simplify and accelerate investment procedures. SDEA S ONLINE TOOL On the website of the SDEA, you can expose the difficulties found in your professional activity or suggest a reduction or elimination of a context cost. 41

42 São Miguel Island: Rua de São João, PONTA DELGADA Açores Portugal Tel: (351) Fax: (351) Terceira Island: Rua direita, 52, 2º ANGRA DO HEROÍSMO Açores Portugal Tel: (351) Thank you! Arnaldo Machado December