Background information

Through Decree-Law 98-A/2025 of 24 August, the Government establishes a regulatory framework, designed to respond more swiftly and effectively to needs arising from rural fires. The framework can be adapted and applied according to specific requirements.

Regarding economic activities, this Decree-Law creates three support lines and schemes for companies and cooperatives, including the support scheme for restoring the productive capacity and economic competitiveness, except in the agriculture and forestry sectors, which are covered by specific support measures.

These measures apply to rural fires of significant size or severity, as defined by the Council of Ministers Resolution 126-A/2025 of 28 August that sets their temporal and territorial scope. All parishes with burnt area resulting from major rural fires between 00:00 on 26 July 2025 and 23:59 on 27 August 2025 were considered, in the regions of Alentejo, Lisbon and Tagus Valley, Centre and North.

The terms and conditions of the support lines and schemes to be granted to companies and cooperatives affected by the wildfires are approved by Ordinance 490-C/2025/2 of 29 August.

This measure is closely related to PT-2022-27/3400

Content of measure

Under Ordinance 490-C/2025/2, the support scheme is intended to support investment projects aimed at restoring, in whole or in part, the productive capacity and economic competitiveness of companies and cooperatives directly affected by rural wildfires of large scale or severity. Support is granted in the form of a non-repayable grant, up to a maximum of €5,000,000.

The total eligible expenditure assessed is financed up to a limit of 85%; or, where the beneficiaries are enterprises other than SMEs, up to 85% for the total sum up to €300,000 and 25% for the total sum exceeding that amount.

Where there is no insurance contract, and none is required by law, the maximum support is 25% of the loss incurred.

Where there is an insurance contract, the maximum support corresponds to 50% of the difference between the loss incurred and the compensation paid by the insurer, and the support may not exceed the amount of compensation paid by the insurer.

However, where the compensation paid by the insurer is less than 25% of the loss incurred, the maximum support is 25% of the loss incurred.

The territorially competent Regional Development Coordination Commission is responsible for drafting and publishing the call for applications, managing and conducting the procedures for the assessment, selection and decision on applications, and for paying the support, with the collaboration of IAPMEI, I.P., and Turismo de Portugal, I.P.

Use of measure

No information is available on the use of measure.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Other businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government Local / regional government	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	No involvement as case not in social partner domain	No involvement as case not in social partner domain
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: N/A

Involvement

There was no involvement of social partners.

Views and reactions

No views on /reactions to the measure from the social partners are known.

Sources

• 24 August 2025: Decreto-Lei 98-A/2025 (diariodarepublica.pt)
• 29 August 2025: Resolução do Conselho de Ministros 126-A/2025 (diariodarepublica.pt)
• 30 August 2025: Portaria 490-C/2025/2 (diariodarepublica.pt)