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Investor's Guide Angra Do Heroísmo

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Investor's Guide Angra Do Heroísmo Investor’s Guide Angra do Heroísmo UNIÃO EUROPEIA GOVERNO Fundo Europeu de DOS AÇORES Desenvolvimento Regional Index 04 Preface 05 The Municipality of Angra do Heroísmo 06 Why Angra do Heroísmo? 08 Municipality framework 10 Political and institutional environment 12 Business environment and resources 18 Fiscal system 20 Investment opportunities 26 Success stories: investment and innovation 28 How can EY help? 31 Relevant contacts Preface “ Angra do Heroísmo offers investors opportunities for product diversification, supply integration and access to complementary sectors, while allowing Located in the North Atlantic, 1,450 them to enjoy the Azores’ km from the Portuguese mainland, the Azores is an archipelago consisting of innovative character.” nine islands and a total of 250,000 inhabitants. Angra do Heroísmo is located on the Terceira island. The region benefits greatly from which have stronger connections to its geostrategic position, extensive other parts of the Portuguese economy Exclusive Economic Zone (EEZ) and (according to information taken from the rich biodiversity. It is well-placed for Portuguese National Statistics Institute, developing space technologies and Instituto Nacional de Estatística [INE]). João Alves is already home to a growing “blue In the 2013-15 triennium, technology economy” sector (related to ocean companies’ foreign sales contributed Country Managing Partner resources) with enormous potential and 20.6% of the Azores’ total turnover Ernst & Young Audit & Associados generated on the international market). - SROC, S.A. a thriving tourism industry. The agro-food sector is also The Angra do Heroísmo municipality essential to the region’s economy. Local generates annual turnover of around production of dairy products, wine and €603m (12.8% of the Azores region’s canned fish can offer true competitive turnover) and is home to more than advantage and an additional source of 26,000 companies employing close to wealth. 9,000 people. More traditional sectors, such as agro-food, construction and Just like other European island tourism, now have the opportunity regions, the Azores benefit from specific to reinvent themselves and be at the measures in areas such as agriculture, forefront of the latest global trends. The state support and taxation. These same opportunity presents itself to the measures help mitigate the impact of the business services sector and the sea island regions’ physical and geographic economy, which have been identified by constraints, and accelerate their the municipality as sectors with highest economic growth. technological development and are now Between 2012 and 14, Azorean capitalizing on their potential. companies showed significant levels of Above all, there is a new strategy innovation, above the European average Florbela Lima to reinvigorate the city by capitalizing (49.4% vs. 49.1%). Transaction Advisory Services Partner on its unique advantages, creating Government and Public Sector However, the region faces a new opportunities for its citizens and Portugal lider set of challenges. Although it has attracting (and retaining) better-qualified Ernst & Young, SA. improved over the past year, the high human resources. This will support unemployment rate among young investment in innovation in the most people, the low qualification levels, and traditional sectors, attract investment high rate of premature school dropouts to emerging and value-added sectors, are key unresolved issues. and ensure close co-operation with other In addition, the Azores region island municipalities and neighboring generates relatively low Gross Added countries. These aims are in line with Value (GAV). This is evident from the the Portugal 2030 objectives and the GAV generated by Azorean companies European Union’s (EU’s) new cohesion in high- and medium-technology sectors, policy. 4 Investor’s Guide − Angra do Heroísmo The Municipality of Angra do Heroísmo “Angra do Heroísmo benefits not only from a geostrategic position between the European and American continents, but also from an investment-friendly fiscal Since its establishment, the framework and incentive municipality of Angra do Heroísmo systems.” has been closely linked to economic dynamics. In fact, between the 15th and 18th centuries, the city’s urban center was one of the world’s key commercial junctions. It linked the various programming through the Terceira mercantile trade routes established Tech Island program promoted by the during this period by the great European Government of Azores. empires, widening their influence to the To all of this, there is the esteemed East and West Indies. quality of life that characterizes our José Gabriel do Álamo This period of great trade made municipality. That includes high-quality de Meneses Angra do Heroísmo, in Gaspar services provided to families in areas Frutuoso’s words, the “universal such as education and health, the Mayor of Angra do Heroísmo scale of the West Sea” and put this impressive biodiversity and beautiful small town, located in the heart of landscape, and the cultural dynamics the Atlantic, at the center of the that prompted UNESCO to classify the era’s commercial interests. With the city as a World Heritage Site in 1983. advent of steam navigation, Angra Those are just some of the many factors do Heroísmo’s influence in the global that make life in our municipality economic panorama shrunk. However, particularly enjoyable. that has not prevented this city from Angra do Heroísmo is therefore a developing and combining a wealth of good bet for your investment. characteristics that make it attractive for investment today. Although the Azores are relatively distant, Angra do Heroísmo benefits from an excellent geostrategic position, lying at a natural junction between the European and American continents. We have a more favorable fiscal framework than other Portuguese regions and we benefit from a system of incentives for private investment that is among the most competitive in the EU. Our municipality also has several investment support mechanisms, which are explored in this guide. In addition to the municipal incentives that you can learn about this document, we have an incubator of companies, StartUp Angra, which operates nationwide. The Terinov- Technological park of Terceira Island will soon be operational. We also benefit from intensive training in computer EY’s Attractiveness SurveyInvestor’s <Country/region> Guide − Angra − <Month> do Heroísmo <Year> 5 Why Angra do Heroísmo 01 Location and geographic positioning Central location in the North Atlantic Accessible by sea and air, with free connections within Azores Framed on Terceira Island, enjoys 985,000 km2 of EEZ 05 Incentives and autonomy The municipality’s distant location means it benefits from specific national and EU incentives Integrates an autonomous region of Portugal, with a relevant level of autonomy in setting economic policies 6 Investor’s Guide − Angra do Heroísmo 02 03 04 Natural and cultural Fiscal Diversified and resources differentiation attractive offer Abundance and diversity of natural Enjoys a differentiated tax Diversified service offerings resources, being the island with regime (tax reduction and for businesses and families the highest percentage of territory specific tax benefits) as an High business density classified as protected area of integral part of the autonomous the archipelago region of Azores First Portuguese city classified as a UNESCO World Heritage Site Diverse panoply of international festivals and traditional parties 06 07 08 Stability, Local support Infrastructures safety and and human capital and knowledge conditions Office to support entrepreneurs Spaces for business receptions Stable social, economic and political Availability of human resources Consolidated know-how in the agro-food systems Availability of office and other and sea economy commercial space Excellent security and safety, with low Internationally recognized knowledge crime levels and research centers High quality of life, with access to good housing, education, culture, health, justice and recreation Investor’s Guide − Angra do Heroísmo 7 Municipality framework Azores Terceira Island Angra do Heroísmo 8 Investor’s Guide − Angra do Heroísmo The Azorean context of Angra do Heroísmo Azores 2.5 hours 57% of Biodiversity 3.2% individuals from the European Portuguese EEZ on land and sea, with dual citizenship continent and about 30% belonging to the 5 hours of the EU EEZ geographic group of Macaronesia from the American continent Terceira Island 400.3 km2 22% Angra Geographic Terceira Island – the third of Terceira Island do Heroísmo City central biggest in the Azorean is national park is the oldest of the archipelago location archipelago territory and was once the archipelago’s capital. Today it is one of the administrative headquarters of the autonomous region of the Azores Source: Câmara Municipal de Angra do Heroísmo (CMAH); “A RAA em números”, Governo Regional dos Açores; “Plano de Marketing do Turismo dos Acores”, Governo Regional dos Açores. Angra do Heroísmo 35,402 125 companies 48% 73% 12.8% inhabitants per thousand active population population employed in the contribution of Angra is the resident population, inhabitants, giving tertiary (services) sector do Heroísmo’s companies distributed across 19 the municipality to the Azores’ total parishes and by 239 km2 a higher business turnover density than the Azorean average Source: INE, Censos 2011. Investor’s Guide − Angra do Heroísmo 9 Political and institutional
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