Invest in Portugal's Tourism with LAQO: Find Out How

This article will help you dive into the world of LAQO - Tourism Offer Qualification Support Line, a financing line provided by Turismo de Portugal (TP) in partnership with the banking system. Find out what it is, what is it for, what types of investments it supports and who can benefit from this financing line.

What is LAQO?

LAQO, or Tourism Offer Qualification Support Line, is a medium and long-term financing program created by Turismo de Portugal in collaboration with financial institutions. Its mission is to support investment projects in companies in the tourism sector, focusing on the requalification and repositioning of enterprises, establishments and activities, the creation of new enterprises, establishments and activities in areas of low population density, as well as the development of entrepreneurial projects . LAQO includes a general line and a specific one for the Algarve.

Who can benefit from LAQO?

Tourist companies of any size, nature and in any legal form that meet the framework conditions.

What is LAQO for?

LAQO supports various types of projects, including:
• Requalification and repositioning: encompasses the improvement and expansion of enterprises, establishments and tourist activities.
• Creation of ventures in low-density areas: LAQO encourages the creation of new ventures in less populated areas, contributing to the development of these regions.
• Entrepreneurship projects: Companies with less than two years of existence, falling into groups CAE 931 and 932, or those focusing on technology-based services related to tourism, can receive financial support.
• Other projects of relevant value: LAQO also considers projects that contribute significantly to the structuring of the tourist offer and the creation of value in the region.

What are the eligible expenses?

All investment expenses that are directly related to the project and that contribute to achieving its objectives are considered eligible. Additionally, studies, projects and technical assistance can be financed, limited to 7% of the eligible investment. Acquisition of motor vehicles and other rolling stock, only if they correspond to the tourist entertainment activity itself, and demonstrate that they are environmentally sustainable.

How does LAQO work?

LAQO operates with different financing structures and interest rates depending on the size and nature of the company:

For SMEs, financing is made up of 40% from Turismo de Portugal and 60% from credit institutions, with interest exemption from Turismo de Portugal and risk analysis from the bank
For non-SME companies, the division is 30% from Turismo de Portugal (interest exemption) and 70% from credit institutions, with interest determined by risk analysis.
Special projects, including entrepreneurship and investments in low-density territories and LAQO Algarve, can receive 75% from Turismo de Portugal (interest exemption) and 25% from credit institutions, with interest determined by risk analysis.

What are the support conditions?

Support conditions vary based on company size:

SME - The maximum period of operation is 15 years, with a grace period of 4 years
Non-SME – The maximum period is 10 years, with a grace period of 3 years
Financing can cover up to 80% of the eligible investment, with a minimum of 20% equity.

Preparing for Success

We know that navigating the complexities of tourism financing requires solid planning and professional support. It is essential to have the help of experts to increase your chances of approval.

Yunit is here to help you grow your tourism projects. We offer:

• Support in defining projects within LAQO and LAQO Algarve criteria
• Preparation of a detailed Business Plan that includes market analysis, implementation strategy and economic and financial viability. These documents are essential both for the request for financing from the registered credit institution, and within the scope of the request for a prior framework opinion to Turismo de Portugal, in cases where applicable.

Don't let your tourism projects stand still! Count on LAQO and Yunit to boost your business and contribute to the development of the tourism sector in Portugal.