International Business Centre of Madeira on track

 During the first quarter of 2014, 42 new companies were licensed to operate in the International Business Centre of Madeira (IBCM).

This indicator confirms an increase in the number of new companies in the IBC, largely due to the most recent decisions taken by the European Comission.

One of the EC’s decisions was to increase by 36,7% the ceilings up to which the taxable profit of companies licensed to operate in the International Business Centre of Madeira may enjoy a reduced corporate tax rate of 5%, one of the lowest in the European Union. The second decision extended the authorization of new companies in the IBC until the 30th of June, 2014, confirming the preparation of the negotiations concerning the IV Regime of the IBCM, whose benefits will be extended beyond 2020.

Both measures clearly contributed to enhance the credibility and competitiveness of the International Business Centre of Madeira.

The two main drivers of the growth of Madeira’s IBC are the International Services Sector and the International Shipping Register (MAR).

These two business sectors are attracting investors from various markets. In fact, the IBC of Madeira continues to ensure investment from traditional European markets, as in the case of France, Italy and Spain. Nevertheless, investors from emerging markets, such as Russia and South Africa, are also establishing companies in the IBC of Madeira.

As far as the Shiping Register is concerned, the German market is the one which has shown greater interest in MAR.

Madeira’s International Business Centre is also experiencing an increasing number of Portuguese companies, in particular exporters and companies who are expanding their international operations.

During 2014, S.D.M. is conducting a dymanic promotional plan, with missions to over 14 countries, from different continents, with the aim of attracting further investment into Madeira.