Substantial €1.5 million tax reduction granted to Lufthansa's manufacturing site
Lufthansa Technik Portugal, an international investment of considerable importance, is set to establish a facility in Santa Maria da Feira by the end of 2027. The industrial unit, valued at approximately €227.6 million, aims to repair aircraft engine parts and create over 500 jobs in the region.
The Santa Maria da Feira City Council, composed of PSD and PS minority parties, has elected to support this project under the Contractual Tax Benefits Regime for Productive Investment. To facilitate this investment, the council will waive certain taxes, primarily the Municipal Property Tax (IMI) and the Municipal Property Transfer Tax (IMT), for a period of five years and up to a total value of €40,000 and €1.5 million, respectively.
The manufacturing plant will be situated in the LusoPark industrial area and will focus on inspection, testing, maintenance, and repair of aircraft components and engine parts. Lufthansa Technik Portugal will mark the company's first venture in Portugal, with the potential to significantly boost the global presence of the aeronautical industry.
Mayor Amadeu Albergaria emphasized the significance of the project, stating, "The Lufthansa Technik Portugal project will bring more qualified, high-value jobs to the area, further enhancing the economic and industrial centrality of Santa Maria da Feira and affirming Portugal as a competitive destination for advanced industries."
The tax benefits provided by the council are contingent upon compliance with three conditions: adherence to all investment contract clauses, the acquisition of land for the factory before December 31, 2025, and demonstrable intention for the construction of the industrial unit. Moreover, the benefits will be forfeited if the plant closes before the end of 2035.
Lufthansa Technik Portugal is poised to become a transformative investment in the rapidly growing aeronautical industry, offering substantial advantages for both the local economy and Portugal's standing as a global industrial hub.
The Saint Maria da Feira City Council, under the joint governance of PSD and PS, has opted to support the Lufthansa Technik Portugal project under the Contractual Tax Benefits Regime for Productive Investment, waiving the Municipal Property Tax (IMI) and the Municipal Property Transfer Tax (IMT) for five years, up to €40,000 and €1.5 million, respectively, to facilitate this significant property investment in the aerospace industry. In line with Portugal's ambition to establish itself as a competitive destination for advanced industries, Lufthansa Technik Portugal's establishment is set to establish a foothold in Portugal's economy, potentially significantly boosting the global presence of the aeronautical industry, thus creating a new branch in Portugal's finance sector.
