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Madeira is a very efficient location for companies with operations in the European Union and worldwide. 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. Global Business SolutionsMadeira's International Business Centre has been conceived as a programme of State aid fully approved and supported by Portugal and the European Union, with the objective of providing the investor with a unique package of benefits. The wide scope of activities which may be carried out in the IBC, ranging from manufacturing and trading to shipping activities, and the various synergies which can be found among themselves, demonstrate that the MIBC has been carefully structured to serve the investor with a package of global business solutions.
Companies from all over the world have chosen Madeira as their business location. Some are small firms, establishing a presence away from their home markets for the first time. Others are well-known and large multinationals continuing to expand their operations in Europe, supported by the global business solutions offered by Madeira's International Business Centre.
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| 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% |
* Note: In 2012 these companies will migrate to the regime described hereinafter for companies licensed as from 2007.
| 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 | Non-resident Shareholders |
| Dividends | 0% |
| Interest | 0% |