Industrial Free Trade Zone: Production, Assembling and Warehousing
Madeira is presently one the best locations within the European Union for the establishment of industrial and distribution activities, which benefit from the operational and tax advantages presented by the Industrial Free Trade Zone of Madeira (IFTZ), an industrial park fully integrated in the legal framework of the IBC of Madeira.
The IFTZ offers attractive tax and customs duties regimes, which combined with competitive operational costs and high quality support services and infrastructure, make the IFTZ a very attractive location for the setting up of regional, national and international activities.
Industrial Free Trade Zone Activities
Although any manufacturing or warehousing activity may take advantage of the operational and tax conditions on offer, the Industrial Free Trade Zone is a particularly attractive location for the following sectors:
Logistics and distribution: its strategic location in the Atlantic Ocean and within the island itself, makes the IFTZ a prime location for setting up distribution activities. In fact, Madeira has regular sea cargo connections on a twice-a-week basis with Lisbon, on a weekly basis with New York, and every fortnight with European ports such as Bremen, Hamburg, Antwerp, Felixtowe, Rotterdam and London. The international airport has several daily flights to Lisbon and other European cities, such as London and Paris. Additionally, the location of the IFTZ next to the main commercial port, beside the island’s main motorway, and only 8 km from Madeira’s international airport, makes it a logical choice for the establishment of warehousing and distribution activities for the whole island;
Natural products: Given its climate and soil, Madeira boosts excellent conditions for the cultivation and supply of medicinal plants. The development of organic agriculture has become one of the priorities of the Regional Government and adequate support services have been created in this sector, such as a natural park, specialized laboratories, and a local university with a strong tradition in biology;
Tourism-related goods: The existence of over 1,000,000 tourists a year creates attractive marketing possibilities for various products linked to the hotel industry. As a matter of fact, amenities, such as shampoos and soaps, bakery and pastry, as well as paper and plastic products have a large demand by the local hotel industry.
These are just a few examples of how manufacturing and logistical companies may benefit from the advantages offered by the IFTZ. Other examples come from the more than 50 companies of various origins presently operating in the IFTZ or in the process of setting up. The scope of activities carried out range from fish-processing and food products to cosmetics, cleaning and electronic goods.
Setting up procedures and requirements
All types of companies and other forms of corporate representation, such as branches, agencies or offices, foreseen in Portuguese company law, may set up in the IFTZ, provided that the activities described in Article 36-Aº of the Portuguese Tax Incentives Statute and the conditions defined therein are met.
| Up to 2.500 m2
|Additional section of 2.501 m2 up to 5.000 m2, inclusive||11 euros/m2|
|Additional section of 5.001 m2 up to 10.000 m2, inclusive||9,5 euros/m2|
|Additional section of 10.001 m2 up to 20.000 m2, inclusive||8 euros/m2|
| Additional section above 20.000 m2