In question is the announced Lufthansa Technik Portugal S. A., whose industrial unit for repairing aircraft engine parts and components is expected to begin operating at Feira at the end of 2027, through an “investment of 227.6 million euros” and the creation of “526 jobs” – of which 325 by 2028 and the remainder by 2030.

To meet this financial effort, the Santa Maria da Feira City Council unanimously decided (PSD and PS majority) to support the installation of the factory under the Contractual Tax Benefits Regime for Productive Investment, which is a Government instrument only applicable if the local authority involved agrees to waive the taxes to which it would be entitled.

In practice, there are two major sources of revenue that the council will forego: the Municipal Property Tax (IMI), from which Lufthansa Portugal will be exempt for five years up to a total value of 40,000 euros, and the Municipal Property Transfer Tax (IMT), from which there will be an exemption up to a limit of 1.5 million euros, in a single transaction, when purchasing the land for the new factory.

The Mayor of Santa Maria da Feira, Amadeu Albergaria, explained this support to Lusa: “The installation of Lufthansa Technik Portugal represents an international investment of enormous relevance in the municipality, both in terms of volume, with more than 227 million euros, and in terms of the creation of more qualified jobs, in an area with a strong technological component and high added value”.

For the social-democratic mayor, the unanimous approval of these tax benefits demonstrates the territory's willingness “to welcome and support projects of strategic interest” and reflects “a spirit of total institutional cooperation with the Government”, since the installation of Lufthansa Technik, in addition to reinforcing the “economic and industrial centrality of the municipality”, also contributes “to the affirmation of Portugal as a competitive and attractive destination for cutting-edge industry”.

The more than 1.5 million euros in benefits in question are, however, dependent on compliance with three conditions: the first is compliance with all clauses of the investment contract to be established between the company and the Portuguese State; the second is that “the exemption only applies to properties that are acquired up to December 31, 2025 and that are demonstrably intended for the installation of the industrial unit”; and the third is that the same exemptions are invalidated if the plant closes before the end of 2035.

According to Amadeu Albergaria, Lufthansa Technik Portugal will be built specifically in the industrial area of ​​LusoPark and will have activities focused on the inspection, testing, maintenance and repair of aircraft components and engine parts.

This unit will be the first project of the company, which belongs to the German airline Lufthansa, in Portugal and is anticipated to be “a transformative investment” in view of the growing global impact of the aeronautical industry and its export potential.

The company belongs to the German airline Lufthansa.