Madeira's IBC consolidates growth in 2014

According to the latest available data, the International Business Centre of Madeira (IBCM) grew in numbers when compared to 2013.

In fact, on the 31st of December, 2014, a total of 2.193 entities were licensed to operate within the framework of the IBCM, as opposed to a total of 1.903 entities registered at the end of 2013.

These are clearly positive indicators which began to appear during the second semester of 2013, after the positive decision taken by the European Commission to review the ceilings applicable to the taxable profits of companies in the IBCM which may enjoy a reduced corporate tax rate of 5%.

As it can be seen in the table below, the growth the IBCM experienced in 2014 was mainly due to an increase in the number of companies in the International Services sector as well as in the number of vessels registered in the International Shipping Register - MAR. Both sectors of the IBCM play a vital role in the diversification of the island's economy, by creating news sources of revenue and employment, among other benefits.

Presently, a formal negotiation process is taking place between Portugal and the European Commission in order to approve Regime IV of the IBCM, which is expected to be in force until the end of 2027. In this regard, S.D.M. hopes that the European Commission will take a quick and adequate decision in order to reinforce the competitiveness and stability of the IBCM as a vital tool to attract foreign investment and to diversify Madeira's economy.

Number of entities operating within the IBCM