Madeira International Shipping Register

The Madeira International Shipping Register (MAR) is Portugal’s second ship register, and the third largest European registry, and forms part of the Madeira International Business Centre. It was established in 1989 to help prevent the transfer of vessels from the conventional Portuguese register to foreign flags of convenience, attract investment and support the competitiveness of the Portuguese merchant fleet.

Ships registered with MAR fly the Portuguese flag and are subject to the applicable Portuguese maritime legislation and international maritime conventions binding Portugal. The MAR framework also provides for the control of maritime-safety and marine-environment requirements under those conventions.

The Madeira International Shipping Register (MAR) registers commercial vessels, including vessels under construction, and pleasure craft, subject to the applicable registration, technical, safety, certification and classification requirements. The MAR framework also permits the temporary registration of vessels taken under bareboat charter, provided that the required authorisations are obtained.

Vessels may be owned by entities licensed to operate within the MIBC or by entities outside the MIBC, subject to the applicable requirements. The registration application must include evidence of ownership or chartering rights and the relevant corporate or personal identification documents.

Initial surveys and related certification may be carried out by the DGRM or by a classification society recognised in Portugal (such as ABS, BV, LR, RINA, KR and CCS), in accordance with the applicable agreements and MAR procedures.

No. You do not need to be Portuguese, nor do the directors or managers of the owning entity generally need to be Portuguese residents or nationals. A vessel may be owned by a foreign company, subject to the applicable MAR eligibility and registration requirements. Where the relevant entity has its registered office outside Madeira, it must maintain a local branch, agency, delegation or other form of representation with sufficient powers to deal with the authorities and third parties, including to receive service of process. MCS may provide such representation under an appropriate power of attorney.

At least 30% of the crew of a commercial vessel registered in MAR must be Portuguese nationals, nationals of an EU or other European country, or nationals of a country whose official language is Portuguese. The remaining crew may generally have other nationalities. In specially justified cases, an exemption may allow additional crew members from other countries where suitably qualified crew cannot be recruited. This nationality requirement does not apply to pleasure craft registered in MAR. All crew members must nevertheless meet the applicable qualification and technical requirements.

Registration is subject to a fixed fee of 1,800 euros plus a variable fee based on net tonnage, ranging from 225 euros up to 250 NT down to 0.10 euros per NT above 30,000 NT. The annual fee is a fixed 1,400 euros plus a variable fee, from 200 euros up to 250 NT down to 0.25 euros per NT above 20,000 NT. Passenger vessels, tug boats and auxiliary craft pay a 15% surcharge on registration and 30% on the annual fee.

Licensed Madeira shipping companies may benefit from the MIBC tax regime, including a 5% IRC rate on qualifying income from maritime transport activities, subject to the applicable substance, income-source, benefit-limit and other statutory conditions. Certain dividends paid to qualifying non-resident shareholders may benefit from an exemption from withholding tax, but this is not automatic and depends on the applicable MIBC requirements. MIBC entities may also benefit from an 80% reduction or limitation in stamp duty and certain local taxes. Additional stamp-duty exemptions may apply to qualifying external financing for the acquisition of ships and related equipment. The minimum share capital is not specific to shipping and depends on the company’s legal form.

Crew members of vessels registered in MAR must have social-protection coverage for sickness, occupational disease and parenthood. Portuguese nationals and individuals resident in Portugal must generally be enrolled in the Portuguese general social-security regime, with a total contribution rate of 2.7%, of which 2.0% is paid by the employer and 0.7% by the crew member. Non-Portuguese and non-resident crew members may instead be covered by another qualifying public or private social-protection regime. Remuneration earned by crew members in that capacity is exempt from Portuguese personal income tax while the MAR registration remains valid, subject to any separate rules applicable where the company opts for the tonnage-tax regime.

Registration in MAR normally requires ownership and vessel documents, including the bill of sale or other title of acquisition, tonnage information or certificate, classification and statutory certificates, technical details of the vessel and propulsion system, and information concerning any existing mortgages or other encumbrances. For definitive registration, a certificate of deletion from the previous registry is generally required, although alternative evidence may be accepted in specific circumstances. An initial registration survey report or, where permitted, a declaration of conformity from a recognised organisation is also required.

If the relevant owner or shipping entity is established outside Madeira, it must maintain a local branch, agency or other authorised representative with sufficient powers to deal with the authorities and receive service of process. The precise documentation depends on the vessel type, classification, registration route and trading activity, so the checklist should be confirmed with MAR before documents are prepared.