With reduced taxation, excellent infrastructures, competitive operational costs, safety and quality of life, Madeira is positioned to provide investors with a unique package of benefits, offering a wide range of solutions to enhance the efficiency and performance of various forms of investment.
Madeira is presently one the best locations in the E.U. for companies with operations in the European single market and worldwide.
Moreover, Madeira’s preferential tax regime has not only been approved by Portugal but also by the European Union as a valid form of State aid for regional development, providing the IBC (International Business Centre) of Madeira with a stable and fully regulated and supervised business environment, thus adding to its international image of credibility and transparency.
Madeira offers investors a pro-business attitude as well as a deep commitment by the Madeiran authorities and the local population to develop the island’s economy by encouraging and welcoming foreign investment and the consequent transfer of know-how.
Companies setting up in Madeira, therefore, benefit from a wide range of supporting services, private and public, in most areas of activity.
These include assistance in the incorporation of new companies, consultancy services, accountancy, legal advice, recruitment agencies, financial, insurance and banking services, all of which come with high standards of quality.
What are the Tax Benefits?
Reduced Corporate Tax Rate (IRC) of 5% until 2027;
Full exemption from withholding tax on dividend remittances for non-resident shareholders;
Full exemption from withholding tax on interest and other forms of remuneration for shareholders loans, allowances or advances of capital made to the company, or which are due because they did not withdraw the profits or income placed at their disposal;
The “Participation Exemption Regime” is applicable for dividends, reserves, capital gains and losses;
80% exemption on Stamp Duty, Municipal Property Tax, Municipal Tax on Real Estate Transfer; Regional and Municipal surcharge;
76,2% reduction on the Special Advance Tax Payment and Autonomous taxations;
Tax Credit for international double taxation is possible, both legally and economically;
Full exemption from corporate tax on royalty payments and interests paid to third parties;
Exemption from withholding tax for interest paid to non-residents, provided that the purpose of the loan is the realization of investment and part of the normal operation within the scope of IBC;
Application of all EU directives;
Benefit from a large network of Double Taxation Treaties with over 70 countries.
Flexible Substance Requirements
The creation of one full-time employment during the first six months of activity and the achievement of a minimum investment of 75.000,00 € within the first two years of operation;
Or the creation of six or more full-time jobs during the first six months of activity (in such cases no investment is necessary);
On top of the benign tax environment, see more about the opportunities and quality of life that Madeira has to offer: