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|Investing in Madeira remains an attractive solution for those looking to operate in Portugal and abroad.|
The International Business Center of Madeira (MIBC, also known as Madeira Free Trade Zone) remains attractive for foreign and Portuguese investors, representing the single Portuguese fiscal incentive created to directly support the internationalization of worldwide companies.
Duly licensed companies
benefit from one of the lowest corporate income tax (CIT) rates in the EU, 5%, to which 0% withholding tax on interest, capital gains, services,
royalties and dividends is added (provided that certain requirements are
The MIBC is a real European incentive for the
internationalization of exporting companies or international services providers.
Most service providers can benefit from the MIBC, including those
engaged in trading, e-business and telecommunications, consultancy and marketing services, as well as intellectual
property management, real estate project development or holding-related
feature of the MIBC related benefits is that once the licensing process is done, the tax benefits become immediately
effective. Unlike European funds there is no waiting period between the
approval of the incentive and its implementation.
The MIBC is a tax benefit scheme granted under the Portuguese Tax Benefits
Statute and duly approved by the
Since the MIBC is governed by Portuguese and
European Law, it offers the required legal
certainty to its investors. All
companies duly licensed to operate within the MIBC comply with all legal
requirements to operate in Portugal, and therefore in the EU.
Given the above, all
e-commerce directives have been duly transposed into Portuguese law, including those
relating to electronic billing, digital signatures and data protection.
Such facts make it clear
that, in addition to being a completely transparent tax incentive, the MIBC
also allows a for an effective tax saving that can be used in the
internationalization of the licensed company.
In addition to all the
above-mentioned benefits, companies that are duly licensed in the MIBC may
cumulatively apply for European funding under the Madeira 14-20 program and
other financial instruments available to companies based in the Autonomous
Region of Madeira.
Last, but not least,
Madeira has all kinds of high quality support services, such as a broad network
of information technology companies, consulting firms, financial services and
administrative support, thus making operational costs low when compared to
other European markets. Continue reading