|
Madeira is a very efficient location for companies with operations in the European Union and worldwide that welcomes international investment. With reduced direct and indirect taxation, adequate infrastructures, competitive operational costs, safety and quality of life, Madeira is positioned to provide international investors with a unique package of benefits.
Madeira’s preferential tax regime has been approved by the Portuguese and E.U. authorities as a State aid programme for regional development until 2020. It is therefore a credible, transparent and stable regime. All companies setting up in Madeira are fully Portuguese, automatically given a VAT number and with access to the large network of international treaties to avoid double taxation ratified by Portugal. They also have full access to the European single market and benefit from the application of all E.U. Directives and Regulations.
In the following paragraphs you will find a summarized explanation of the most common activities and their tax treatment, as well as information on the requirements, formalities and business environment in Madeira. You may also download our investment guides or contact us for further information. To find out more about ship and yacht registration, please refer to the shipowners section. About MadeiraMadeira is a Portuguese region located in the Atlantic Ocean, 900 Km southwest of Lisbon and a 3 hours flight from the major European capitals. Apart from the renowned natural beauty, Madeira also offers an excellent quality of life, with a political and social stability, mild climate and diversified offer of leisure activities. In addition, Madeira has a modern economy based in the international services, with highly specialized and efficient professional services providers and qualified workforce, with excellent language skills. The existence of a modern infrastructure, allied to a reduced direct and indirect taxation, also contributes to provide investors with a unique package of benefits. Madeira is a very efficient location for companies with operations in the European single market and worldwide.
Business Environment
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Companies licensed before 2001 | |
|---|---|
| Taxation | Income from activities held with non-residents |
| Corporate Income Tax Rate | 0% until the end of 2011 |
| Capital gains | 0% until the end of 2011 |
| Withholding Tax | Paid to non-resident Shareholders |
| Dividends | 0% |
| Interest | 0% |
| Royalties | 0% |
| Capital (Stamp) Duty | Full Exemption |
| V.A.T. | 15% |
| Companies licensed as from 2007 | |
|---|---|
| Taxation | Income from activities held with non-residents |
| Corporate Income Tax Rate | 3% - from 2007 to 2009 4% - from 2010 to 2012 5% - from 2013 to 2020 |
| Capital Gains | 3% - from 2007 to 2009 4% - from 2010 to 2012 5% - from 2012 to 2020 |
| Withholding Tax | Paid to non-residents Shareholders |
| Dividends | 0% |
| Interest | 0% |
| Royalties | 0% |
| Capital (Stamp) Duty | Full Exemption |
| V.A.T. | 15% |
| Shareholders Taxation | |
|---|---|
| Withholding Tax | |