SOCIAL IMPACT BONDS
Finances innovative projects in priority public policy areas against delivery of previously agreed measurable social outcomes.
How it Works
Proposed social outcomes, as well as their respective indicators and targets, will be established and put into writing beforehand, based on the application. If said outcomes are achieved, the social investors will be fully reimbursed for the amount invested in achieving them.
Applications should be submitted in partnership with the organisations involved: implementing organisations (those that are running the project), social investors (those who are financing the project) and public authorities (that confirm whether the project is aligned with public policy and the relevance of the expected outcomes).
The financing needs of projects must be greater than EUR 50,000.
Who can apply?
Technical fields and corresponding Public Authorities
Tax incentives for those who invest in Social Impact Securities
Pursuant to article 264 of Law No. 114/2017, of 29 December, which approved the State Budget for 2018, article 19-A, related to deductions for Social Impact Securities partnerships, was added to the Tax Incentives Statute, paragraph one of which reads:
“Cash inflow from social investors, which they recognise as an expense under social impact securities partnerships, shall be deemed expenses and losses for the tax period, in an amount corresponding to 130% of the respective total or up to a cap of 8/1000 of the sales turnover or turnover in services”.
This new tax incentive allows Social Investors to recognise 130% of the total amount invested in Social Impact Securities in each tax period as an expense, regardless of any future reimbursement.
The purpose of this tax incentive is to encourage Portuguese companies to invest in innovative and experimental projects that are trying new approaches to address social problems in priority public policy areas.
Investment in Social Impact Securities
Regardless of any future reimbursement.