The Investment Incentive Program in the State of Espírito Santo

INVEST-ES: Incentive for Industrial Growth in Espírito Santo 

INVEST-ES is a strategic tax incentive program aimed at boosting the expansion, modernization and diversification of industry in Espírito Santo, Brazil. In addition to fostering economic growth, the program stimulates the generation of jobs and income and encourages the decentralization of investments, promoting the installation of new manufacturing units outside the Greater Vitória Metropolitan Region. 

One of the major advantages of INVEST-ES is the differentiated reduction of ICMS, which can be even more advantageous depending on the city where the company will be established. The program also contributes to national economic decentralization, helping to reduce the predominant industrial concentration in the South and Southeast regions, especially in São Paulo. 

The Invest Committee evaluates each project to grant incentives that can reach up to *85% of presumed ICMS credit and a reduction of up to *85% in the tax calculation base. 

Companies eligible for the program include those wishing to start new ventures as well as those seeking to expand, modernize or diversify their production. 

Advantages of INVEST-ES 

The program offers a series of tax benefits that guarantee greater competitiveness to industries established in Espírito Santo. 

1. ICMS Deferral 

Payment of ICMS can be postponed in several operations, ensuring a more strategic cash flow. This includes: 

✅ Importation of machinery and equipment for incorporation into the company's fixed assets; 

✅ Interstate acquisition of machinery and equipment, with deferral of the tax rate difference when incorporated into fixed assets; 

✅ Importation of inputs and raw materials, with tax deferred until the industrialized products are sold; 

✅ Internal sales of machinery and equipment intended for the fixed assets of companies participating in INVEST-ES; 

✅ Internal acquisition of raw materials and inputs, with deferral of ICMS until the final products are sold. 

2. ICMS Exemption 

The program grants ICMS exemption for goods or assets exclusively intended for the construction, expansion or diversification of the company, in internal operations. 

Important: this benefit does not apply to acquisitions related to the company's operations. 

3. Presumptive Credit 

Companies benefiting from INVEST-ES can obtain a presumed credit of up to 70% (already provided for in the Law, but which may be higher, depending on the fulfillment of certain conditions) in ICMS on interstate transactions, as defined in the Agreement signed with the State. 

4. Reduction of the Tax Base 

Reduction of up to 70% (already provided for in the Law, but which may be greater, up to 85%, depending on compliance with certain conditions), in the ICMS tax base on internal transactions, ensuring greater competitiveness for products manufactured in Espírito Santo. 

Benefit Period 

Currently, with the tax reform, the period to benefit from INVEST-ES incentives is until December 31, 2032. 

Full Support for your Company 

Our office offers specialized advice so that your company can make the most of the benefits of INVEST-ES. Among the services offered: 

✅ Financial feasibility simulations and tax projections to assess the impacts of the incentive; 

✅ Opening of companies in Espírito Santo, whether new units or branches (including headquarters located in other states); 

✅ Development and structuring of the Invest Indústria (industry) Project, with presentation to SEDES and BANDES; 

✅ Complete technical support during the project analysis, ensuring that the documentation meets all requirements; 

✅ Support during technical visits by SEDES/BANDES, ensuring efficient process management; 

✅ Management of the process until the signing of the Agreement, guaranteeing the granting of the tax benefit. 

If your company wants to invest in Espírito Santo and take advantage of the INVEST-ES incentives, contact us for a detailed analysis and effective strategic planning. 

*Note: The analysis, for granting incentives above 70%, which is already provided for by law, and which we stated in the text above that it can reach 85%, considers aspects such as the company's economic activity, location of the investment, existence of similar products in the State and competitiveness with industries in other states.