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09-01-2024 Tech Companies at Madeira's IBC Advance Blockchain Use in Fighting Fraud... Nearsoft and Connecting Software, two leading IT companies based at Madeira's International Busin...

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15-12-2021 29% of Madeira's IBC new companies are high-tech The number of new ICT companies licensed to operate within the framework of the International Bus...

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01-09-2021 Employment and tax revenues generated by the IBC boost Madeira’s economy ... The most recent data concerning tax revenues and job creation in Madeira clearly demonstrates tha...

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26-01-2021 Moving to work in Madeira - How Diogo, André and Pedro did it in 2020... Connecting Software, with headquarters in Vienna, opened its Madeira office three years ago. Out ...

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27-10-2020 01 Edu System - Company licensed in the IBC of Madeira invests in the education area... What is the core business of you company? Can you describe your activity? 01 Edu System is an Ed...

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09-09-2020 European Commission prolongs Madeira's IBC Regime until 2023 The European Commission has recently announced that several State Aid regimes, some of which woul...

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Agreements on the Mutual Promotion and Protection of Investments

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  
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