If you are unemployed, but want to start your own project, this could be the right time to take the first step. In Portugal, there is various support for creating one’s own job, designed for those who want to turn a business idea into reality and, at the same time, secure their job.
According to the Institute of Employment and Professional Training (IEFP), the measures range from the advance payment of unemployment benefits to subsidized credit lines and support programs for young entrepreneurs. Below, we explain the main options available and the conditions for access in 2025.
PAECE: the central entrepreneurship support program
The Support Program for Entrepreneurship and the Creation of Own Employment (PAECE) brings together a set of measures financed by the European Social Fund, within the scope of the Investe Jovem program. This support is aimed at those who are unemployed and want to open a small for-profit business, securing at least their own full-time job.
According to the IEFP, PAECE allows total or partial advance payment of unemployment benefits and can be combined with subsidized credit lines, such as Microinvest and Invest+. Beneficiaries also receive technical support in the creation and consolidation of projects, including training and business support.
Microinvest and Invest+ credit lines
These financing lines are available through banking institutions, with mutual guarantee and interest subsidies. Invest+ is intended for investment projects between 20 thousand and 200 thousand euros, with the possibility of financing up to 100 thousand euros and a two-year grace period. Repayment is made in five years, and the first year of interest is fully subsidized by the IEFP.
Microinvest supports investments of up to 20 thousand euros, with identical terms and interest rate conditions (30-day Euribor + 0.25%, with a minimum rate of 1.5% and a maximum of 3.5%). Both programs can be combined with geographic mobility measures and other technical incentives, explains the IEFP.
These lines are aimed at unemployed people registered in employment centers, young people looking for their first job and self-employed workers with income below the minimum wage.
Investe Jovem Program: for those just starting out
The Investe Jovem Program was created to support entrepreneurs between 18 and 30 years old, registered with the IEFP and with a viable business idea. Eligible projects must have an investment between 2.5 and 100 times the value of the Social Support Index (IAS), which in 2025 is 522.50 euros.
Support can cover up to 75% of the total investment, with promoters must guarantee 10% in equity. Financing is granted in the form of an interest-free loan, with repayment of up to 60 months, and includes technical support for management and entrepreneurship training.
According to , this program has helped hundreds of young people to create small local businesses, especially in areas such as technology, services and rural tourism.
Portugal 2030: innovation and sustainability at the center
Portugal 2030, a community funds program that replaces the previous Portugal 2020, also includes measures for entrepreneurs. Support focuses on the areas of digital innovation, climate transition, human resources qualification and social inclusion.
According to IAPMEI and ANJE – National Association of Young Entrepreneurs, applications can be made through the respective online platforms. The objective is to encourage the creation of sustainable, competitive businesses with potential for international growth.
Where to get more information
Anyone wishing to apply for this support can consult the IEFP, IAPMEI or ANJE branches, or access the official portals of each program. Applications require the presentation of a business plan and proof of registration with the employment center.
Entrepreneurship is increasingly a real alternative to unemployment, and the Portuguese State is strengthening the mechanisms to support it. The first step, however, remains the same: believing in your idea and planning well for the future.
Also read:
