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Madeira housing prices are on the rise

Madeira housing prices are on the rise in the first quarter of 2020, confirming the Island’s position as an investment destination where expats can not only benefit from Portuguese Golden Visa program and the Non-Habitual Resident tax status  but also independent consultants and entrepreneurs alike, can complement their new real estate investment on the island with relocating their business into the Madeira International Business Center (MIBC).

According to the Idealida‘s price index, the price of housing in Madeira increased by 0.6% during the first quarter of 2020, standing at 1,566 euros / m2. The increase in the last year was 4.8%.

According to the same source, of the 9 municipalities analyzed, Calheta was the one with the highest increase (5.4%), followed by São Vicente (5.3%), Câmara de Lobos (4%) and Santa Cruz (1 , 6%). On the other hand, prices decreased in Santana (-6.6%), Ponta do Sol (-4.6%), Ribeira Brava (-0.8%) and Machico (-0.3%).

Funchal showed an increase of 0.5%, with the cost per square meter being 1.841 Euros. The most expensive civil parishes to buy a house in Funchal are Sé (2.462 Euros/m2), São Martinho (2.046 Euros/m2) and Imaculado Coração de Maria (1.836Euros/ m2). On the other hand, the cheapest are São Roque (1.244 Euros/m2), Monte (1.327 Euros/m2) and Santo António (1.490 Euros/m2).

In Porto Santo, prices rose 0.3%, placing the price per square meter at 1.297 Euros.

César Oteiza, general director of Idealista Portugal, points out that “the Idealista’s report studies the evolution of house sale prices in the first quarter of the year, so the national emergency situation is not yet reflected in these figures”.

abridged from Diário de Notícias da Madeira by Sandra S. Gonçalves

 

The above data is concurrent with MCS experience in assisting expats relocate to the Autonomous Region of Madeira. Most of our clients are looking for island life, which in Madeira is never boring and completely stress-free for locals, expats, and tourists alike, and where cultural offerings are immensely diverse.

Our team at MCS, with more than 20 years of experience in the sector, is able to assist in your relocation to Madeira. For more information click here, for information our services click here.

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The Real Estate Market in Madeira

Madeira Island’s real estate market has been booming in the last couple of years, offering a wide variety of real estate investment opportunities to those looking for a truly international real estate market and without the inflated prices that have been afflicting the Portuguese mainland.

Just under a two-hour flight from Lisbon, Portugal’s Madeira Island was awarded the “World’s Leading Island Destination” by World Travel Awards since 2015, dethroning Bali and the Maldives. This archipelago’s primary island is one of the few in the world offering both the zest and vibe of island life and the buzz of a real city.

This duality of city buzz and sub-tropical island life finds its way into the real estate market, where investment opportunities could be divided into four categories: Funchal, Madeira’s capital; the southern sunny coast (along the so-called “banana line”, where banana plantations experience the optimal climate for growth), the northern coast and Porto Santo Island, Madeira’s sister Island.

Official statistics collected from the Portuguese National Statistic Institute and the Directorate of Statistics of the Madeira Regional Government showed that, already in 2018, the median value of rents for new leases of family accommodation in Madeira was EUR 5.15 / m2, which is higher than the value registered for Portugal (EUR 4.39 / m2). These numbers positioned Madeira as the second region among the seven regions with the highest median of rental income, behind the Lisbon Metropolitan Area (EUR 6.06 / m2) and ahead of the Algarve (EUR 5.00 / m2), which came in the third position.

According to the same authorities, the median price of housing in Madeira remained among Portugal Top 3 regions. In 2018 the Algarve (EUR 1,500 / m2), the Lisbon Metropolitan Area (EUR 1,318 / m2) and the Autonomous Region of Madeira (EUR 1,203 / m2) were all above the national average of EUR 984 /m2.

The above mentioned values are sustained by the fact that the Autonomous Region of Madeira is the solely year-round tourism destination in Portugal due not only to its permanent spring-like weather climate, but also because of its tourism history that dates back to the 19th century when it was a coveted destination among European royalty and nobility. Among these illustrious guests you will find Empress Sisi of Austria, Emperor Maximilian of Mexico, and, later, Sir Winston Churchill stayed for extended periods, and more recently Queen Silvia of Sweden and Crown Princess Victoria of Sweden.

Funchal, the island’s capital, is the place to be. The city is not only the prime tourism center, but also the political, economic and scholarly center (all higher education institutions, including the University of Madeira, are located here) of the island. With a population of 111,892, Funchal is Madeira’s major city and home to almost 42% of the four-island archipelago’s population.

In Funchal’s civil parishes of Sé and São Martinho apartment rents can yield a monthly rental income (long-term rental) between EUR 1,800 to EUR 2,000 for a EUR 270,000 investment in 196 m2 apartment. Should you opt for short-term rentals, in the likeness of AirBnB, the same well located apartment can yield between EUR 500 and EUR 1,000 per week.

Outside the municipality of Funchal, the long term rental income decreases per square meter decreases, namely in the municipalities of Santa Cruz (4.46 € / m2), Câmara de Lobos (3.81 € / m2) and Machico (3.68 € / m2).

However, just like the Madeiran capital, the city of Santa Cruz, especially in the civil parish of Caniço, can yield good short-term rental income (EUR 1,200/week) due to the fact that this area of Madeira is popular with the Germanic market. The trick here is to invest in a villa with a good view over the Atlantic Ocean. In the Caniço civil parish, villas start at EUR 250,000 and depending on the view you have over the ocean they can go up half a million or more euros, specially in the highly coveted Garajau area.

Apart from the existing houses and apartments already available for sale, some stakeholders in the Madeiran real estate market are offering once in a lifetime investment opportunities that can turn into great short-term rental income sources: bespoke modern villas and traditional Madeiran manorial houses known locally as Madeiran “quintas”.

While those offering bespoke villas usually require an initial investment of at least EUR 350,000 for a fully personalized villa built from scratch and along the famous banana line, in the municipalities of Ponta do Sol and Ribeira Brava, a Madeiran quinta will never be sold below EUR 1 Million threshold.

The advantage of a bespoke villa project is that with a single investment you get the opportunity to built a house the way you like and, depending on the plot you get, you can built two additional luxury bungalows for short-term renting and with an expected yield of EUR 1.000/week.

On the other hand, Madeiran quintas are usually set in nature, or “hidden” within the city center, and have a particular architecture, which mixes the local style and the British style. They are always surrounded by beautiful gardens, with paths covered with rolled pebbles, among centuries-old trees, flowers, ponds and even modern swimming pools. These type of real-estate has always been favored by Madeiran nobility, merchants and British since the 18th century.

Most of the quintas available for sale in the Madeiran real estate market are superbly preserved and combine history and tradition with modern amenities. Even though few of them are allocated to rental, the yield regarding such investment option is never below EUR 1000/week, due to the peaceful and romantic scenery that inspires rest and happiness among travelers and owners.

Regardless of your investment option and whether you simply wish to diversify your investment portfolio our relocate to Madeira, know that the current Madeiran real estate market is booming with supply and demand, and those looking into rental income investments can count on the fact that a growing number of tourists, currently 13,3% opt for home rentals.

Island life in Madeira is never boring and completely stress-free for locals, expats, and tourists alike, and the cultural offerings are immensely diverse for an island. Museums with Flemish and religious art, churches hosting organ music festivals, monthly symphonic orchestra and chamber music concerts, English language theatre plays, gastronomical and traditional folk festivals throughout the year, and recurring art exhibitions are just some examples of Madeira’s active cultural scene.

Those looking for a retreat away from the city-life and in full communion with nature, therefore cheaper and more secluded, but still just 40 minutes from Funchal, can look into Madeira’s northern coast or Porto Santo (2h30 hours away by ferry from Funchal or 15 minute away by airplane) where housing prices are significantly cheaper.

Being an integral part of the Portugal, the Autonomous Region of Madeira, through its democratically elected Legislative Assembly and Regional Government is able to complement the Portuguese Golden Visa program and the Non-Habitual Resident tax status with extremely competitive incentives for those who are not only looking into relocating upon retirement but also looking into preparing their retirement abroad.

Consultants and entrepreneurs alike, who are not yet willing to retire but are already craving for some peace of mind, can complement their new real estate investment on the island with relocating their business into the Madeira International Business Center (MIBC).

Created in the 1980s, the MIBC currently offers the lowest corporate tax rate in Europe for those providing international services either as consultants or entrepreneurs, to those obtaining income from intellectual property, to those conducting trading or e-commerce.

A duly licensed company within the MIBC, conducting the above mentioned economic activities, will benefit from a 5% corporate tax rate (on the taxable income derived from abroad) instead of the normal 21% rate. This benefit is granted provided that you invest EUR 75.000 in tangible or intangible assets (co-ownership of real estate qualifies for this purposes) and that you create at least one full-time job post, which can be yourself as a director of the MIBC company.

Should you own a yacht, know that Madeira also offers an International Shipping Registry, which currently is Europe’s 3rd largest registry.

All these tax incentives could be combined with your real estate investment on the island and with the already available Portuguese Golden Visa and Non-Habitual Tax Resident status.

However, and unlike the Portuguese mainland, a greater potential for savings arises also from the fact that the cost of living on the island is way lower than the ones found in Lisbon, Porto and the Algarve.

In the case of Funchal, the cost of living in the Madeiran capital when compared to Lisbon is 17% lower and 5.77% lower when compared to Porto. Add this to the fact that VAT rates and personal income tax rates, should you not qualify as NHR, are lower than in the Portuguese mailand, and you will be having some extra savings to pamper yourself.

Last but not least, thanks to the strong British presence on the island, most Madeirans speak English, and Madeira was the first territory in Portugal to implement compulsory English education starting with primary school. English, alongside French and German to a lesser extent, is the main second language spoken by locals.

This strong bond with the British community is also seen in Madeira’s medical and law sectors. You’ll have no trouble finding English-speaking doctors or lawyers catering to the expat community.

Our team at MCS, with more than 20 years of experience in the sector, is able to assist in your relocation to Madeira. For more information click here, for information our services click here.

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A Small Guide to Living in Madeira

“Of all islands, the most beautiful and free,” is the Madeira’s motto. Backing up this assertion, H.N. Coleridge once said: “I should think the situation of Madeira the most enviable on the whole earth. It ensures every European comfort with almost every tropical luxury.”

Living in Madeira

Where is Madeira?

Madeira is an archipelago, and a Portuguese Autonomous Region, in the Atlantic Ocean. It is interesting to know that the island is closer to northern Africa than it is to Portugal’s mainland. It is 400 km (249 miles) from the Canary Islands, 800 km (497 miles) from Africa and 1,200 km (746 miles) from Lisbon.

Madeira’s unique geographical location is what turned Portugal into the first global empire in the 15th century. It is the meeting point between three continents – Europe, Africa and America. Cristiano Ronaldo International Airport (FNC) connects the island to international airports an to the Portuguese mainland.

How’s weather like in Madeira?

In terms of climate, Madeira is characterized by an all year-round spring-like weather which make it so famous among its residents and visitors. During Summer, Spring and Fall, temperatures vary between 17ºC (62.6ºF) and 24.ºC (75.2ºF). As for the Winter months temperatures will vary between 14.ºC (57.2ºF) and 20.ºC (68ºF).

Last, but not least, note that the number of hours of sunshine per year reaches values as high as 3300, a 70% larger value than the ones found in northern Europe.

Given the above it is easy to understand why Madeira is famously known as the “Pearl of the Atlantic”.

What is life like in Madeira?

Just 55 minutes from Funchal, you can explore the wild coastal north and the town of Porto Moniz. Or, in 40 minutes, you can reach the sunny and peaceful village of Jardim do Mar, which both kisses the vast Atlantic Ocean and is walled by mountains.

Day-to-day life in Madeira is stress-free for locals, expats, and tourists alike, and the cultural offerings are immensely diverse for an island. Museums with Flemish and religious art, churches hosting organ music festivals, monthly symphonic orchestra and chamber music concerts, gastronomical and traditional folk festivals throughout the year, and recurring art exhibitions are just some examples of Madeira’s active cultural scene.

If you tired of the cultural agenda, you can always find peace on the neighboring island of Porto Santo. A two-hour ferry trip takes you to one of Portugal’s “7 Natural Wonders”—Porto Santo’s 9 kms of healing-sand beach.

If you’re not up for a boat trip, you can indulge in a weekend at Reid’s Palace—Sir Winston Churchill’s outstandingly glamorous hotel of choice.

Having that said Madeira has a lot to offer to its residents. All most everything you need is possible to find on the island.

And if you cannot find what you need, do not stress about it. Amazon, Ebay and AliExpress deliver to the island and Cristiano Ronaldo Airport connect you to the major European capitals—including Paris, Brussels, London, Berlin, and Zürich…

What language is spoken in Madeira?

Portuguese is the official language and spoke by all on the Autonomous Region and due to being a tourist destinations since the 19th century English is very common all across the Madeira and Porto Santo, a certainly a given in the capital of Funchal.

Working and Business in Madeira

If you are planning to relocate to Madeira please note that it will be difficult to find a a job, and even if you do it will most likely be in the tourism sector. Also note that is not easy to find a permanent job in Madeira, but still possible.

One way, which is supported by the government, is to open your own business. Here tax benefits are plenty. Those looking into incorporating a company in the services sector and aiming for international clients can benefit from the lowest corporate tax rate in Europe, just 5%, through the Madeira International Business Centre.

If you are fortunate to be a digital nomad or a remote worker, then you can benefit from the tax regime applicable to expats, the Non-Habitual Resident tax regime. Which can be combined the Madeira International Business Centre if you are looking to attract qualified staff.

Cost of living in Madeira

Cost of living, from accommodations to amenities, are cheaper than in The Algarve

With rents and restaurant prices an average 10.5% lower than those in the Algarve where rents and restaurant prices are one of the best bargains in Western Europe. Madeira is one of the most affordable places to spend time in this part of the world. Utility costs are lower here, too—electricity is as much as 21.8% lower than in the Algarve, internet 11.2% less costly.

And VAT is one percentage point lower than on the Portuguese mainland.

Mainlanders find prices in Madeira similar to theirs and some things are even cheaper. As in every place in the world go where the locals go and everything will be cheap.

As for fruit or wine these cost three or four times less than in Europe, for example.

For a term of comparison Portugal ranks in the Top 30 Cheapest Countries in Europe (Numbeo), surpassing Spain, Malta, Greece, and France. Add this to the special tax regime available to new residents and businesses and your savings will increase even more.

As being fully integrated within the European Union, please note that the Autonomous Region of Madeira uses the same currency as the rest of Portugal, i.e. the Euro (€).

Housing in Madeira

Madeira Island’s real estate market has been booming in the last couple of years, offering a wide variety of real estate investment opportunities to those looking for a truly international real estate market and without the inflated prices that have been afflicting the Portuguese mainland.

Official statistics collected from the Portuguese National Statistic Institute and the Directorate of Statistics of the Madeira Regional Government showed that, already in 2018, the median value of rents for new leases of family accommodation in Madeira was EUR 5.15 / m2, which is higher than the value registered for Portugal (EUR 4.39 / m2). These numbers positioned Madeira as the second region among the seven regions with the highest median of rental income, behind the Lisbon Metropolitan Area (EUR 6.06 / m2) and ahead of the Algarve (EUR 5.00 / m2), which came in the third position.

According to the same authorities, the median price of housing in Madeira remained among Portugal Top 3 regions. In 2018 the Algarve (EUR 1,500 / m2), the Lisbon Metropolitan Area (EUR 1,318 / m2) and the Autonomous Region of Madeira (EUR 1,203 / m2) were all above the national average of EUR 984 /m2.

The above mentioned values are sustained by the fact that the Autonomous Region of Madeira is the solely year-round tourism destination in Portugal due not only to its permanent spring-like weather climate, but also because of its tourism history that dates back to the 19th century when it was a coveted destination among European royalty and nobility. Among these illustrious guests you will find Empress Sisi of Austria, Emperor Maximilian of Mexico, and, later, Sir Winston Churchill stayed for extended periods, and more recently Queen Silvia of Sweden and Crown Princess Victoria of Sweden.

Funchal, the island’s capital, is the place to be. The city is not only the prime tourism center, but also the political, economic and scholarly center (all higher education institutions, including the University of Madeira, are located here) of the island. With a population of 111,892, Funchal is Madeira’s major city and home to almost 42% of the four-island archipelago’s population.

In Funchal’s civil parishes of Sé and São Martinho apartment rents can yield a monthly rental income (long-term rental) between EUR 1,800 to EUR 2,000 for a EUR 270,000 investment in 196 m2 apartment. Should you opt for short-term rentals, in the likeness of AirBnB, the same well-located apartment can yield between EUR 500 and EUR 1,000 per week.

Outside the municipality of Funchal, the long term rental income decreases per square meter decreases, namely in the municipalities of Santa Cruz (4.46 € / m2), Câmara de Lobos (3.81 € / m2) and Machico (3.68 € / m2).

However, just like the Madeiran capital, the city of Santa Cruz, especially in the civil parish of Caniço, can yield good short-term rental income (EUR 1,200/week) due to the fact that this area of Madeira is popular with the Germanic market. The trick here is to invest in a villa with a good view over the Atlantic Ocean. In the Caniço civil parish, villas start at EUR 250,000 and depending on the view you have over the ocean they can go up half a million or more euros, specially in the highly coveted Garajau area.

Apart from the existing houses and apartments already available for sale, some stakeholders in the Madeiran real estate market are offering once in a lifetime investment opportunities that can turn into great short-term rental income sources: bespoke modern villas and traditional Madeiran manorial houses known locally as Madeiran “quintas”.

While those offering bespoke villas usually require an initial investment of at least EUR 350,000 for a fully personalized villa built from scratch and along the famous banana line, in the municipalities of Ponta do Sol and Ribeira Brava, a Madeiran quinta will never be sold below EUR 1 Million threshold.

The advantage of a bespoke villa project is that with a single investment you get the opportunity to built a house the way you like and, depending on the plot you get, you can built two additional luxury bungalows for short-term renting and with an expected yield of  EUR 1.000/week.

On the other hand, Madeiran quintas are usually set in nature, or “hidden” within the city center, and have a particular architecture, which mixes the local style and the British style. They are always surrounded by beautiful gardens, with paths covered with rolled pebbles, among centuries-old trees, flowers, ponds and even modern swimming pools. These type of real-estate has always been favored by Madeiran nobility, merchants and British since the 18th century.

Most of the quintas available for sale in the Madeiran real estate market are superbly preserved and combine history and tradition with modern amenities. Even though few of them are allocated to rental, the yield regarding such investment option is never below EUR 1000/week, due to the peaceful and romantic scenery that inspires rest and happiness among travelers and owners.

Regardless of your investment option and whether you simply wish to diversify your investment portfolio our relocate to Madeira, know that the current Madeiran real estate market is booming with supply and demand, and those looking into rental income investments can count on the  fact that a growing number of tourists, currently 13,3% opt for home rentals.

Transportation in Madeira: getting around

Madeira has an extremely good road system, delivered by EU-funding, which connects all parts of the island through a system of fast roads and tunnels. Needless to say that the best way to go around is either by car or bus.

Leisure and Culture

Island life in Madeira is never boring and completely stress-free for locals, expats, and tourists alike, and the cultural offerings are immensely diverse for an island. Museums with Flemish and religious art, churches hosting organ music festivals, monthly symphonic orchestra and chamber music concerts, English language theatre plays, gastronomical and traditional folk festivals throughout the year, and recurring art exhibitions are just some examples of Madeira’s active cultural scene.

Madeira expat community

There are many expats in Madeira and most of them are from the UK, Germany, Austria, France and to a smaller extent Scandinavia, Canada and the US. Moreover, there are a lot of people who are interested in moving to the island, especially from these mentioned countries.

Our team at MCS, with more than 20 years of experience in the sector, is able to assist in your relocation to Madeira. For more information click here, for information our services click here.

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Madeira: Island Life with a European Flavour

Just under a two-hour flight from Lisbon, Portugal’s Madeira Island was named the “World’s Leading Island Destination” by World Travel Awards in both 2015 and 2016. This archipelago’s primary island is one of the few in the world offering both the zest and vibe of island life and the buzz of a real city.

“Of all islands, the most beautiful and free,” is the island’s motto. Backing up this assertion, H.N. Coleridge once said: “I should think the situation of Madeira the most enviable on the whole earth. It ensures every European comfort with almost every tropical luxury.”

Madeira has been receiving international attention since European royalty discovered the wonders of its year-round, springlike climate and the associated health benefits. Empress Sisi of Austria, Emperor Maximilian of Mexico, and, later, Sir Winston Churchill stayed for extended periods, bringing this Portuguese island international status and notoriety.

Before being one of the first tourism destinations in Europe, Madeira was (and still is) famous for its sugar, flowers, and wine production. George Washington himself sipped on Madeira wine to celebrate U.S. independence.

Madeira’s unique climate is characterized by a yearly average temperature of 20°C. Summers tend to be mildly hot with temperatures reaching an average maximum of 25°C. It’s rare to see temperatures above 30°C. If you’re a beach-lover, you’ll be glad to know that Madeira’s sea temperatures are the warmest in Portugal, reaching a pleasant 23.5°C during summer.

Despite its proximity to Morocco, the island’s nearest continental neighbor, Madeira’s climate is humid (around 75% humidity year-round), thanks to its UNESCO World Heritage-protected, prehistoric Laurissilva Forest, which covers 20% of the island’s 741 square kms. This forest has more than 1,600 kms of irrigation channels accompanied by footpaths that once connected the entire island’s countryside.

With a population of 111,892, Funchal is Madeira’s only major city. Home to almost 42% of the four-island archipelago’s population, it’s the economic, cultural, and political center of the islands. Madeira’s other notable cities—Machico, Câmara de Lobos, Santa Cruz, and Santana—have fewer than 50,000 residents.

Just 55 minutes from Funchal, you can explore the wild coastal north and the town of Porto Moniz. Or, in 40 minutes, you can reach the sunny and peaceful village of Jardim do Mar, which both kisses the vast Atlantic Ocean and is walled by mountains.

Day-to-day life in Madeira is stress-free for locals, expats, and tourists alike, and the cultural offerings are immensely diverse for an island. Museums with Flemish and religious art, churches hosting organ music festivals, monthly symphonic orchestra and chamber music concerts, gastronomical and traditional folk festivals throughout the year, and recurring art exhibitions are just some examples of Madeira’s active cultural scene.

If you tire of the cultural agenda, you can always find peace on the neighboring island of Porto Santo. A two-hour ferry trip takes you to one of Portugal’s “7 Natural Wonders”—Porto Santo’s 9 kms of healing-sand beach.

If you’re not up for a boat trip, you can indulge in a weekend at Reid’s Palace—Sir Winston Churchill’s outstandingly glamorous hotel of choice.

Unlike many island paradises, Madeira’s Cristiano Ronaldo Airport connects you directly not only to Lisbon, Portugal’s capital, but also to every other major European capital—including Paris, Brussels, London, Berlin, and Zürich… one reason Madeira is a favorite holiday destination among British, German, French, and Scandinavians.

Thanks to the strong British presence on the island, most Madeirans speak English, and Madeira was the first territory in Portugal to implement compulsory English education starting with primary school. English, alongside French and German to a lesser extent, is the main second language spoken by locals.

The strong bond with the British community is also seen in Madeira’s medical and law sectors. You’ll have no trouble finding English-speaking doctors or lawyers catering to the expat community.

Cost of living, from accommodations to amenities, are cheaper than in The Algarve

With rents and restaurant prices an average 10.5% lower than those in the Algarve where rents and restaurant prices are one of the best bargains in Western Europe. Madeira is one of the most affordable places to spend time in this part of the world. Utility costs are lower here, too—electricity is as much as 21.8% lower than in the Algarve, internet 11.2% less costly.

And VAT is one percentage point lower than on the Portuguese mainland.

All of Portugal offers the non-habitual residence (NHR) tax regime that grants full exemption from tax on foreign-sourced passive income. In addition, in Madeira, you can also take advantage of unique corporation tax benefits. Madeira’s corporate tax rate is just 5%, the lowest in Europe.

Our team at MCS, with more than 20 years of experience in the sector, is able to assist in your relocation to Madeira. For more information click here, for information our services click here.

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COVID-19 e Ajudas de Estado Portuguesas

Cumprindo com dever de responsabilidade social empresarial, a MCS informa, por este meio, do regime de ajudas de estado portuguesas autorizadas pela Comissão Europeia no âmbito do surto de SARS-CoV2/COVID-19:

A Comissão Europeia considerou que quatro regimes de garantia portugueses para as pequenas e médias empresas (PME) e as empresas de média capitalização afetadas pelo surto de coronavírus estão em conformidade com as regras da UE em matéria de auxílios estatais. Os regimes, com um orçamento total de 3 mil milhões de euros, foram autorizados ao abrigo do Quadro temporário relativo a medidas de auxílio estatal em apoio da economia no atual contexto do surto de COVID-19 adotado pela Comissão em 19 de março de 2020. A Comissão autorizou os quatro regimes portugueses dois dias depois da entrada em vigor do Quadro.

A Vice-Presidente Executiva da Comissão Europeia, Margrethe Vestager, responsável pela política da concorrência, afirmou: «O impacto económico do surto de coronavírus é grave. Em conjunto com os Estados-Membros, estamos a trabalhar para gerir este impacto no máximo das nossas possibilidades. E precisamos de agir de forma coordenada, a fim de ajudar a economia europeia a passar esta tormenta e recuperar com mais força em seguida. Os quatro regimes de garantia portugueses para as PME e as empresas de média capitalização constituem um passo importante neste sentido. Autorizámos estas medidas hoje ao abrigo do novo Quadro Temporário relativo aos auxílios estatais, em estreita colaboração com o governo português.»

Medidas de apoio portuguesas

Portugal notificou à Comissão, ao abrigo do Quadro Temporário, quatro regimes de garantia para as PME e as empresas de média capitalização afetadas pelo surto de coronavírus e que operam em quatro setores diferentes; i) turismo; ii) restauração (e outras atividades similares); iii) indústria extrativa e transformadora; e iv) atividades das agências de viagens, animação turística, organização de eventos (e atividades similares). Os quatro regimes são dotados de um orçamento total de 3 mil milhões de euros.

Estes regimes visam limitar os riscos associados à concessão de empréstimos de funcionamento às empresas gravemente afetadas pelo impacto económico do surto de coronavírus. O objetivo das medidas é assegurar que estas empresas dispõem de liquidez suficiente para preservar os postos de trabalho e continuar as suas atividades apesar da situação difícil causada pelo surto de coronavírus.

A Comissão considerou que as medidas portuguesas estão em conformidade com as condições estabelecidas no Quadro Temporário. Abrangem, em especial, garantias relativas a empréstimos ao funcionamento com um prazo de vencimento e uma dimensão limitados. Limitam também o risco assumido pelo Estado a um máximo de 90 %. O apoio previsto estará, assim, disponível rapidamente em condições favoráveis e será limitado àqueles que dele necessitam nesta situação sem precedentes. Para alcançar este objetivo, as medidas preveem igualmente uma remuneração mínima e salvaguardas para assegurar que o auxílio seja efetivamente canalizado pelos bancos ou outras instituições financeiras para os beneficiários que dele necessitam.

A Comissão concluiu que os quatro regimes de garantia criados por Portugal para as PME e as empresas de média capitalização contribuirão para gerir o impacto económico do surto de coronavírus em Portugal. As medidas são necessárias, adequadas e proporcionadas para sanar uma perturbação grave da economia de um Estado-Membro, em conformidade com o artigo 107.º, n.º 3, alínea b), do TFUE e com as condições estabelecidas no Quadro Temporário.

Nesta base, a Comissão autorizou as medidas ao abrigo das regras da UE em matéria de auxílios estatais.

Contexto

A Comissão adotou um Quadro Temporário para permitir que os Estados-Membros utilizem toda a flexibilidade prevista nas regras em matéria de auxílios estatais para apoiar a economia no contexto do surto de coronavírus. O Quadro Temporário prevê cinco tipos de auxílio que podem ser concedidos pelos Estados-Membros:

  1. Subvenções diretas, benefícios fiscais seletivos e adiantamentos: os Estados-Membros poderão criar regimes de subvenções em que poderão ser concedidos até 800 000 EUR a uma empresa para a ajudar a fazer face a necessidades urgentes de liquidez.
  2. Garantias estatais para empréstimos contraídos por empresas junto de bancos: os Estados-Membros poderão fornecer garantias estatais para garantir que os bancos continuem a conceder empréstimos aos clientes empresariais que deles necessitem. Estas garantias estatais podem cobrir empréstimos para ajudar as empresas a cobrir as necessidades imediatas em termos de fundo de maneio e investimento.
  3. Empréstimos públicos subvencionados às empresas: os Estados-Membros poderão conceder às empresas empréstimos com taxas de juro bonificadas. Estes empréstimos podem ajudar as empresas a cobrir as necessidades imediatas em termos de fundo de maneio e investimento.
  4. Salvaguardas para os bancos que canalizam os auxílios estatais para a economia real: alguns Estados-Membros tencionam desenvolver as capacidades de concessão de crédito atuais dos bancos e utilizá-las como canal de apoio às empresas, em especial pequenas e médias empresas. O quadro deixa claro que esses auxílios são considerados auxílios diretos aos clientes dos bancos, não aos próprios bancos, e dá orientações sobre a forma de limitar ao mínimo as distorções da concorrência entre os bancos.
  5. Seguro de crédito à exportação em operações garantidas a curto prazo: o quadro introduz uma maior flexibilidade quanto à forma de demonstrar que em determinados países os riscos não são negociáveis, permitindo, assim, que o Estado forneça um seguro de crédito à exportação a curto prazo quando for necessário. A Comissão continuará a acompanhar a situação e está pronta a alterar a lista dos países com riscos negociáveis, se necessário.

Note-se que o Quadro Temporário vigorará até ao fim do mês de dezembro de 2020. A fim de garantir a segurança jurídica, a Comissão avaliará, antes dessa data, se é necessário prorrogá-lo.

O Quadro Temporário complementa as muitas outras possibilidades de que os Estados-Membros dispõem para atenuar o impacto socioeconómico do surto de coronavírus em conformidade com as regras da UE em matéria de auxílios estatais. Em 13 de março de 2020, a Comissão adotou a Comunicação relativa à resposta económica coordenada ao surto de COVID-19 em que estabelece estas possibilidades. Por exemplo, os Estados-Membros podem introduzir alterações de aplicação geral a favor das empresas (diferimento de impostos, concessão de subvenções ao trabalho reduzido em todos os setores, etc.), que não são abrangidas pelas regras em matéria de auxílios estatais. Podem igualmente conceder indemnizações às empresas pelos danos sofridos e diretamente causados pelo surto de coronavírus.

A versão não confidencial da decisão estará disponível com o número SA.56755 no Registo dos auxílios estatais no sítio Web da DG Concorrência da Comissão, uma vez resolvidas as eventuais questões de confidencialidade. As novas publicações de decisões sobre auxílios estatais publicadas na Internet e no Jornal Oficial são divulgadas no State Aid Weekly e-News.

Mais informações sobre o quadro temporário e outras medidas tomadas pela Comissão para fazer face ao impacto económico da pandemia de coronavírus aqui.

Fonte: Comissão Europeia

Para mais informações sobre estas medidas no âmbito da Região Autónoma da Madeira, por favor consulte a Associação de Comércio e Indústria do Funchal-Câmara de Comércio e Indústria da Madeira (ACIF-CCIM).

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Coronavirus

SARS-CoV-2 | COVID19 Measures

In view of developments regarding SARS-CoV-2 (“Coronavirus”), we hereby inform you which of the measures we are taking to ensure the continuity of our services to our customers.

Considering that circumstances may change on a daily basis, we currently believe that we are able to comply with the formal deadlines. However, please note that some of the requests/applications made with Governmental authorities may face delays given the fact that all civil service is operating on a minimum service basis in the Autonomous Region of Madeira.

In any case, the well-being of our colleagues and everyone with whom we are in daily contact is essential. As such, at the moment we do not receive clients in the office and we hold meetings as much as possible by phone or videoconference. Exceptions will only made on a highly strict case-by-case analysis by the Administration and in so far there are no governmental measures in place forbidding such type of events.

We, of course, constantly monitor the directives of governmental authorities and take additional measures if necessary. Should there be further restrictions on government/business activities or movement of people we shall keep you informed.

As you know, our assistance is required by you in multiple ways and we will be in constant contact with you in order to be able, to the best of our capabilities in these exceptional circumstances, to keep providing our services.

We thank you in advance for your understanding.

For more information on how to prevent COVID19 and stay safe please visit the WHO website.

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Changes to the UK EHIC Card

Introduction
Following the UK’s departure from the European Union on 31 January 2020, the UK Government decided to modify the graphic design of the current European Health Insurance Card (EHIC) to reflect its new status.
As decided in the Withdrawal Agreement, EHIC rights for all UK policyholders will be maintained until the end of the Implementation Period.
In the long term these rights will also continue for specific groups in the United Kingdom and for residents of the European Union covered by the Citizens’ Rights Agreement – Part II of the Withdrawal Agreement.
The decision on the UK’s future participation in the EHIC after the Implementation Period for individuals who are not, or have ceased to be, covered by the Withdrawal Agreement is a matter for negotiation in the context of the UK’s future relations with the European Union.
UK EHIC future graphic design
The Administrative Commission has been informed that the United Kingdom Government intends to modify the model, established by the Commission Decision that regulates the function and design of the EHIC and the Provisional Replacement Certificate, in the case of the issue of new cards or replacement cards required since 1 February 2020. The changes will reflect the new status of the United Kingdom as not being a Member State participating in the EHIC regime and is similar to the position already adopted by Switzerland and Liechtenstein.
The changes include the elimination of the EU Mark in the EHIC, established by Decision S2 for the technical specifications of the EHIC. The UK Government will proceed to rectify the back of the EHIC by directing people to further information on the use of the EHIC after the UK leaves the European Union.
The UK EHIC that was used before Departure Day complies with current specifications including the European Union Mark, and will continue to be used (the UK does not propose the termination of these cards) for citizens insured under the Exit Agreement – there are currently 27 thousand EHIC with the initial design.
There are no changes to the Provisional Replacement Certificate.
Conclusion
The UK Government requests Member States to take this change into account and to report it to local health services to ensure that UK insured citizens continue to have access to the in-kind benefits of the disease included in the basic regulations (Regulation (EC) No. 883/2004 and Regulation (EEC) No. 1408/71) until the end of the Implementation Period and to which they will be entitled in the future, based on Part 2 of the Withdrawal Agreement.
For more information click here (information only available in Portuguese)
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MIBC: ready for business

Portugal has one of the most important tax policy tools in Europe, the Madeira Free Trade Zone, internationally known as the International Business Center of Madeira (MIBC) and it is ready for business.

Intended for the internationalization of Portuguese and foreign companies, this State aid, foreseen in the Statute of Tax Benefits and duly approved by the European Commission, is based on the fact that the Autonomous Region of Madeira is considered an outermost region (ORs) of the European Union, lacking as such of incentives to promote tradable services to the sector in the Region.

Companies licensed under the IBC-M benefit from one of the lowest Corporate Income Tax (CIT) rates in the EU, i.e. 5% on all activities carried out with non-resident entities, making Madeira a 100% Portuguese destination for national and foreign investors, with due validation by the Portuguese and European authorities.

This internationalization platform from the Atlantic, places Madeira, and consequently Portugal, in an important geostrategic position between Europe, America and Africa.

In addition to the 5% CIT, the MIBC provides a set of tax incentives that also cover non-resident shareholders, such as: exemption from withholding tax on the payment of dividends, in the proportion resulting from the profits that at the level of society, have been taxed at the reduced rate of CIT or which, if not, are derived from income obtained outside Portuguese territory; exemption from withholding tax on the payment of interest, royalties and services.

Merchandise trading, e-business, technology, telecommunications, call-centers, consultancy and marketing services, intellectual property management, development of real estate projects, shipping companies or shareholding management, can all benefit from the tax regime in force of the Madeira Free Trade Zone (currently known as the IV Regime), which allows investors a tax saving that translates into greater financial availability to reinvest in their employees and in their business activity, thus leveraging the regional and national economy.

The tax benefits provided for in the institutional scope of the Free Zone of Madeira are based on mandatory requirements of economic substance, namely: the creation of a certain number of jobs, to be filled by tax residents in the Autonomous Region of Madeira (regardless of their nationality), and the number of which will vary according to the estimated taxable profit for each year; and investment of at least 75 000 euros (in tangible or intangible fixed assets) if less than 6 jobs are created.

The regulation and transparency on which the entire regime in the Madeira Free Zone is based, and which implies subjecting all companies licensed therein to the very same obligations as other Portuguese companies (“General Taxation Regime”) for tax, regulatory and statistical reporting , confer a high degree of confidence and rigor.

Exactly for the reasons explained above, in 2018 about 28% of the companies operating in the Free Zone result in Portuguese capital investment and 77% of the companies result from European investment, thus showing the enormous economic potential of the tax regime.

In most recent years the main investors in the MIBC are high-mobility expats whose business is centered around consultancy services and tech-companies looking for high-speed internet connections and cheap qualified labor forces.

Our team at MCS, with more than 20 years of experience in the sector, is able to assist in your relocation to Madeira. For more information click here, for information our services click here.

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