Portugal has concluded approximately 50 Agreements on the Mutual Promotion and Protection of Investments and 39 of them are already in force.

Given the risk that certain investments abroad involve, the existence of these agreements within the Portuguese legal framework is noteworthy and relevant both for domestic and foreign investors wishing to invest in these jurisdictions through a Portuguese company.

These agreements are mainly concluded with the purpose of creating favorable conditions for the promotion and creation of investments in the territory of both Contracting Parties.

Furthermore, alongside the purposes mentioned above, these agreements provide, on a reciprocal basis, a most favorable treatment of investors and ensure that its investments are given an exceptional protection. Actually, these agreements provide that investments from an investor of one Contracting State within the territory of the other Contracting State cannot be nationalized, expropriated or be subject to any similar measures therein, except in cases of overriding public necessity and provided that a fair compensation, calculated according to the market value, is paid to the investor harmed.

In this context, whenever investors are considering investments in jurisdictions with higher risks involved, and whenever these jurisdictions have concluded an agreement on the Mutual Promotion and Protection of Investment with Portugal, the incorporation of a company within Madeira’s International Business Center may render them unique advantages and protection guarantees.

Indeed, through the incorporation of a company within Madeira’s IBC, investors will not only benefit from a favorable tax regime, but also from relevant instruments of promotion and protection of its investments.

Check the list of jurisdictions with which Portugal has concluded an Agreement on the Mutual Promotion and Protection of Investment and which of them are not yet in force:

Agreement on the Mutual Promotion and Protection of Investment (in force)
Albania	Egypt	Mauritius	Slovaquia
Argelia	Germany	Mexico	Slovenia
Argentina	Guinea Bissau	Mozambique	South Korea
Bulgaria	Hungary	Paquistan	Timor
Cape Verde	India	Paraguay	Tunisia
Chile	Latvia	Peru	Turkey
China	Libya	Philippines	Ukraine
Croatia	Lithuania	Poland	Uruguay
Cuba	Macau	Romania	Venezuela
Czech Republic	Morocco	Serbia

Agreement on the Mutual Promotion and Protection of Investment (not yet in force)
Angola	Gabon	Qatar	Uzbequistan
Bosnia	Kuwait	Russia	Zimbabwe
Brazil	Morocco (new agreement approved in 2008)	Sao Tome and Principe