IBC maintains growth of new companies in 2014

During the first half of 2014, 84 new companies were licensed to operate within the framework of the International Business Centre of Madeira (IBCM), a number which represents an increase of 64% in comparison with the same period of 2013.

This confirms the continued growth of the IBCM, which began last year after the European Commission took important decisions concerning the IBCM's tax regime.

The revision of the ceilings applicable to the taxable profits of companies which enjoy a reduced rate of taxation and the opening of negotiations for the approval of Regime IV of the IBCM, in addition to the recent extension of the deadline for the admission of new companies under Regime III, extending it until December 31 of this year, have sent a message of confidence and stability to the markets, strengthening the credibility of the International Business Centre as a preferential tax regime, formally approved by the European Union as a valid form of State aid for regional development.

These results are also positive reactions to the intense and continuous promotional activity undertaken by S.D.M. with the aim of attracting further foreign investment into Madeira.

Recent Statistics of the IBC

Based on the statistics of the first half of the year, the International Services and the International Shipping Register of Madeira (MAR) were the sectors of the IBC of Madeira which saw greater interest from international investors.

The new companies operating in the International Services sector are mainly from areas such as international trading, the holding of shares, the management of patents and brands, as well as consulting and marketing activities.

With regard to MAR's evolution, the largest number of vessels ever registered has been achieved since its creation within the IBC of Madeira, with a total of 302 vessels, a clear and concrete contribution for the creation and development of a maritime cluster in Madeira.

Finally, as far as the origin of the investments is concerned, the latest indicators continue to point out the interest of various markets from the European Union (72%) and the rest of Europe (11%), which together represent the largest share of foreign investment under the IBC, as well as emerging economies from the American Continent (12%) and others (5%).

At the end of June 2014, a total of 1844 entities were licensed to operate in the International Business Centre of Madeira.