IFRRU 2020 - Financial Instrument for Urban Rehabilitation and Renewal

Last updated: 18 April 2023

IFRRU 2020 is a financial instrument designed to support investments in urban rehabilitation, in the whole Portuguese territory. IFRRU 2020 brings together various sources of funding to boost investment, both European funds from PORTUGAL 2020 and funds from other entities such as the European Investment Bank and the Council of Europe Development Bank, combining them with commercial banking resources.

Support is provided through financial products of two types (not cumulative): 

  • Loans - provided by the financial entities selected to manage IFRRU 2020 support, with maturities of up to 20 years, grace periods equal to the investment period + 6 months (max. 4 years), and interest rates below market rates. 
  • Guarantees - associated with loans provided by the same selected financial entities, for projects that do not have sufficient guarantee Tax benefits already foreseen in the Portuguese law associated to the location and nature of the intervention may be also applicable, namely related to IMI, IMT and VAT. 

Types of intervention that can be financed:

  • Overall rehabilitation of buildings aged 30 years or more (or in the case of younger buildings, with a conservation level of 2 or less, according to Decree-Law no. 266-B/2012, of 31st December).
  • Rehabilitation of abandoned industrial spaces or units.
  • Rehabilitation of private units integrated in an overall rehabilitation of a social housing building.

In the same funding application, IFRRU 2020 supports energy efficiency measures complementary to urban rehabilitation interventions. The renovated buildings can be used for any purpose, such as housing, economic activities and equipment for collective use

In 2021, IFRRU 2020 invested EUR 307 million in building rehabilitation.

Want to know more about this policy ? Learn more