Are you interested in investing?

Transcription

1 Sociedade para o Desenvolvimento Empresarial dos Açores, EPER theres s future in the Azores! Are you interested in investing? There s future in the Azores! SDEA is a privileged interlocutor for your investment projects!

2 What opportunities can we offer? theres s future in the Azores! Geostrategical Location Located between Europe and North America Political and Social stability Available resources Excellent communications Human resources with good knowledge of the English language Favorable business environment Lower taxes Incentives of the EU for economical development Incentives to Investment and Development

3 theres s future in the Azores! Where are we?

4 AZORES theres s future in the Azores!

5 Azores, Portugal Location theres s future in the Azores! Terceira island

6 Location theres s future in the Azores!

7 Flight Connections theres s future in the Azores! Modern Airport ; Direct flights between Lisbon, Porto, Boston, Oakland, Toronto and Madrid;

8 Proximity to the main transatlantic routes; Passenger and freight activity; 6 square kms; 6 berths, two of which concessioned; Praia da Vitória Harbour theres s future in the Azores! Horizontal and vertical handling ; tons of freight capacity per year; 1 passenger terminal ( m 2 )

9 What opportunities can we offer you? theres s future in the Azores! Available resources Excellent communications Human resources with good knowledge of the English language

10 Innovation and Technology theres s future in the Azores!

11 What opportunities can we offer you? theres s future in the Azores! Favorable business environment Lower taxes Incentives of the EU for economical development Incentives to Investment and Development

12 Competitive costs

13 theres s future in the Azores! Effective rent Expenses with Residency, Water, Electricity and Gas Type Portugal Portugal mainland Lisbon area Azores Madeira Water supply Gathering of Solid Residues Services of Sanitation Electricity Gas TOTAL Middle annual total expense for lodger ( ) according to the COICOP, for NUTS II, 2010/2011

14 Economical Data theres s future in the Azores! Fonte: EUROSTAT 2012 The 594 of the Azores, and the 566 of Portugal, correspond respectively, to the receivement of 509,25 and 485,00 per month times 14. This way its directly comparable to other countries.

15 Economical Data theres s future in the Azores! Region Average monthly earnings Portugal 1.034,20 Portugal mainland Azores Santa Maria São Miguel Terceira Graciosa São Jorge 1.036,40 946, ,10 968,50 903,50 766,50 795,90 Pico 809,70 Faial 911,30 Flores 940,10 Corvo 897,30 INE, I.P., Portugal, Available information up to the 30th of September of 2012.

16 WAGE BREAKDOWN theres s future in the Azores! Salary Breakdown Value Observation Base Salary x 14 (Holiday and Christmas Bonuses) Meal Allowance X 11 Work Insurance x14 Social Security x 14 (23,75% over gross salary) Total annual employer s cost 600,00 The minimum wage in the RAA is 509, ,00 93,94 It is optional, with the exception of determined areas of activity, in which there are Collective Conventions of Work, obliging to his 1.033,34 payment and stipulating the value; The appropriate value corresponds to the value paid to the Public Function 9,14 The cost of the work related insurance, varies according to the insurer and the type of activity. This value is based on an hotel s 128,00 employee insurance. 142, ,00 To this annual cost, you may have to add other residual costs, like ,34 flaws allowance and nocturnal work subsidy, depending on the developed activity.

17 Incentives for Investment

18 theres s future in the Azores!

19 theres s future in the Azores! Local development This incentive is divided by investment levels: Investment Non-refundable incentive Refundable incentive % % 25% % 25% This information does not dispense the reading of the current legislation.

20 To the non-refundable incentive can be added increments: Increments Investments 2% investment in quality certification systems 2% energy-saving investments 2% if the project leads to the creation of 50% or more jobs with adequate training 2% projects located in industrial zones, industrial estates or business sites 5% projects that promote the transformation of endogenous resources 5% projects that increase the export capabilities of the company 5% for food and beverage service activities, travel agencies, tour operators, reservation services, and related activities when recognized as being of interest for tourism theres s future in the Azores! This information does not dispense the reading of the current legislation.

21 Example for investment made in São Miguel or Terceira islands: Investment Total of incentive (A)+(B)+(C) Nonrefundable incentive (A) Refundable incentive (B) theres s future in the Azores! Increments (above the non-refundable incentive ) (C) Refundable incentives are zero-interest rate loans, re-payable in 10 years with a 3-year grace period, and in 12 years with a 4-year grace period, for investments equal to or higher than 4 million. Increments may not exceed 10% per project, except for food and beverage service activities, travel agencies, tour operators, reservation services and related activities, and projects that promote the transformation of endogenous resources or increase the export capabilities of the company, in which cases, increments may add up to 15%. The SIDER systems of incentives, are valid between 2007 and 2013, being that, the applications have to be submitted in this period, but the investment can be finished until the end of 2015.

22 theres s future in the Azores! Strategic development The next information does not dispense the reading of the current legislation.

23 Investiments (Terceira and São Miguel islands) Minimum investment Nonrefundable incentive Refundable incentive Export industries % 25% Golf courses % 25% Tourist accommodations with spa installations or with wellness services based on the use of natural resources Tourist accommodations with a structuring effect on the supply of tourism services on the respective island, included in the Tourism Development Plan of the Azores % 25% % 25% Resorts % 25% Theme parks % 25% Establishments of pre-school, primary and secondary education, integrated within the private education system % 25% Health units, with or without hospitalisation % 25% Assisted housing and homes for the elderly % 25% Inter-island sea transport (only the replacement of equipment and boats used for regular sea transport, which include at least one of the following islands: Santa Maria, Graciosa, São Jorge, Flores and Corvo) % 25% Waste management operations % 25% Use of renewable energy sources for the production of biofuels or to substitute the consumption of fossil fuels theres s future in the Azores! % 25% Technological research and development % 25%

24 theres s future in the Azores! To the non-refundable incentive can be added increments: Increments Investiments 2% investment in quality certification systems 2% energy-saving investments 2% project results in an environmental gain for the company 2% if the project leads to the creation of 50% or more jobs with adequate training 2% for projects located in industrial zones, industrial estates or business sites 5% projects that promote the transformation of endogenous resources 5% for Regional Interest Projects (PIR). Increments may not exceed 10% per project, except for PIR projects. This information does not dispense the reading of the current legislation.

25 theres s future in the Azores! Investments higher than ,00 may also apply to the Project of Regional Interest statute (Decreto Regulamentar Regional n. 6/2011/A), which grants a personalized and diligent accompaniment.

26 Employment support measures These measures are effective until the end of 2013, with the possibility of extension

27 theres s future in the Azores! INTEGRA + Type of support Monthly subsidy Unemployed for less than 6 months Unemployed for more than 6 months Amount Example Amount Example 350 per month 350,00 x12x10 = per month 450,00 x12x10 = Note: Subsidy amounts are incremented by 20% when the unemployed person is older than 50 years of age.

28 theres s future in the Azores! Regional Employment Fund 814,8 per month Type of support 6 Months Required 5 Months Extension of internship Company Meal allowance + Work insurance ESTAGIAR L Regional Employment Fund 611,10 per month Company Meal allowance + Work insurance + 203,70 per month Note: 6-months internships to university graduates. The promoter (company) is only responsible for the payment of a meal allowance to the intern (the same amount paid to public employees) and work insurance.

29 theres s future in the Azores! Regional Employment Fund 509,25 per month Type of support 6 Months Required 5 Months Extension of internship Company Meal allowance + Work insurance ESTAGIAR T Regional Employment Fund 381,94 per month Company Meal allowance + Work insurance + 127,31 per month Note: 6-months internships for vocational training graduates. The promoter (company) is only responsible for the payment of a meal allowance to the intern (the same amount paid to public employees) and work insurance.

30 theres s future in the Azores! PIIE Program Type of support After Estagiar L e T First six months Second six months Monthly subsidy Example Monthly subsidy Example Estagiar L 500,00 per month 6 M x 500,00 x 10 = ,00 per month 5 M x 250,00 x 10 = Estagiar T 350,00 per month 6 M x 350,00 x 10 = ,00 per month 5 M x 250,00 x 10 = Note: This program allows companies to hire former Estagiar interns, for at least 12 months. Monthly wages must not be inferior to 700,00, for Estagiar L interns, and 509,25 for Estagiar T interns. Direct support is incremented by 50% if the promoter hires the interns 3 months, or more, before the end of the internship.

31 Tax benefits

32 theres s future in the Azores! 30% 25% 20% 15% Corporate Income Tax - CIT Portugal Azores Madeira 25% 25% 17,50% 10% 5% 0% Portugal Azores Madeira The Azores have the lowest CIT (IRC) in the country (Less 30 % that in Portugal mainland)

33 theres s future in the Azores! 25% 20% 15% 10% 5% Value Added Tax - VAT Portugal Azores Madeira 23% 16% 13% 12% 9% 6% 4% 5% 22% 0% Reduced rate Intermediate rate Normal rate The Azorean VAT (IVA) is lower that in Portugal mainland and in Madeira

34 theres s future in the Azores! Mission SDEA The Society for the Business Development of the Azores, aims to promote actively the captation of investment projects with extern capitals to the Region, national or foreign, and develop and implement policies of business development to reinforce the competitiveness and productivity of the Azorean companies

35 theres s future in the Azores! Contacts: Terceira: Rua direita, 52, 2º ANGRA DO HEROÍSMO Açores Portugal Tel: (351) São Miguel: Rua de São João, PONTA DELGADA Açores Portugal Tel: (351) Fax: (351) We re waiting for you!!! sdea@investinazores.com

36 Additional information: theres s future in the Azores! SIDER - Decreto Legislativo Regional n.º 26/2011/A of 4 th of November, all information can be consulted at Subsystem for Local Development of SIDER - Decreto Regulamentar Regional n.º 7/201/A, all information can be consulted at: PIR: Programa Integra +: u%c3%a7%c3%a3o+do+conselho+do+governo+n%c2%ba+18+de+2013.htm Programa Estagiar: PIIE: This information is only available in portuguese.