Tax Regime of the IBC of Madeira has been Published

Law 64/2015, of the 1st of July, which approves Regime IV of the International Business Centre of Madeira (IBCM), has been published. It is now possible, therefore, to formally license new companies to operate within the ambit of the IBCM.

Under the terms of the new regime, as recently agreed with the European Commission, companies licensed to operate within the framework of the IBCM will enjoy, until the end of the year 2027, a reduced corporate tax rate of 5%, one of the lowest in the European Union.

Additionally, such companies will benefit from a withholding tax exemption on the payment of dividends, amongst other tax exemptions and reductions, as well as from the dispositions of the Portuguese general regime including a worldwide participation exemption.

Regime IV of the IBCM reinforces Madeira as a very attractive, credible and stable jurisdiction for the efficient structuring of international operations and for the attraction of inward investment.