1. Introduction – Why So Many Expats Choose Madeira Island
If you are researching how to move to Portugal, few destinations combine safety, lifestyle, and opportunity like Madeira Island. As part of Portugal and the European Union, Madeira offers political stability, low crime, and modern infrastructure, all within a subtropical climate and a time zone aligned with London.
The island’s strategic location between Europe, Africa, and the Americas, together with competitive living costs and an advantageous tax framework, has turned Madeira into a leading relocation hub for professionals, retirees, and entrepreneurs. From panoramic ocean views to EU-level services and education, Madeira provides an ideal setting to live, work, and invest within a secure European environment.
2. Step 1: Choose Where to Live — Why Madeira Leads
Madeira is an autonomous region of Portugal, fully integrated into the EU, Schengen Area, and Eurozone. It offers exceptional air connections, a highly qualified workforce, and a vibrant international community.The island consistently ranks among the safest places in the world and provides a quality of life unmatched by most European cities. With its International Business Centre (IBC), Madeira also attracts global entrepreneurs seeking to establish EU-based operations at a 5% corporate income tax rate, one of the lowest in Europe and fully approved by the European Commission.
For those planning how to move to Portugal for business or residence, Madeira combines the island lifestyle with full access to the European single market and a transparent, OECD-compliant legal framework.
3. Step 2: Choose the Right Visa for You
Non-EU and non-EEA nationals who wish to live in Portugal for more than 90 days must apply for a long-stay visa before arrival. The main residence categories include several tailored options depending on your profile and purpose.
D7 Visa, Passive Income or Retirement
The D7 visa suits retirees and individuals with passive income such as pensions, dividends, or rental income. Applicants must prove regular earnings sufficient to sustain their stay without working in Portugal. Once approved, the residence permit allows full access to the Schengen Area and can lead to permanent residency or citizenship after five years.
This option remains one of the most popular for those who wish to enjoy Madeira’s mild climate and low cost of living while benefiting from the region’s safety and healthcare standards.
D2 Visa – Entrepreneurs and Self-Employed
Designed for entrepreneurs and independent professionals, the D2 visa enables you to start or relocate a business to Portugal. Applicants must submit a viable business plan and demonstrate sufficient financial means to operate.
Companies incorporated in Madeira can qualify for the 5% IBC corporate income tax rate if they create substance locally, making the D2 visa ideal for those combining residency with international business management.
D8 Visa – Remote Workers
The D8 digital nomad visa targets professionals employed or contracted by foreign companies. Applicants must prove a stable monthly income (typically four times the Portuguese minimum wage) and maintain a valid work contract or service agreement.
Madeira has become a European hub for remote workers, supported by high-speed internet, coworking spaces, and a friendly English-speaking community.
Start-Up Visa
The Start-Up Visa welcomes innovative entrepreneurs who wish to develop technology-based projects in Portugal. Applicants must partner with a certified incubator and show potential for job creation or export growth. Madeira’s StartUP Madeira centre, part of the European BIC network, provides incubation and mentoring support for qualified founders.
Tech Visa
The Tech Visa allows companies established in Portugal to recruit highly qualified professionals from non-EU countries. It simplifies the residence process for skilled employees in science, technology, and digital sectors.
Golden Visa – Investment-Based Residence
For investors, the Golden Visa remains a route to residence without the obligation of tax residency. By investing at least €500,000 in eligible funds or Portuguese companies, or €250,000 in cultural or scientific projects, applicants obtain a renewable residence permit requiring only an average of seven days of stay per year.
After ten years, holders may apply for permanent residence or Portuguese citizenship. Investing through Madeira-based structures combines access to the Golden Visa with the benefits of a stable, low-tax EU jurisdiction.
4. Step 3: Obtain Your NIF, Bank Account, and Housing
Before submitting your residence application, several preparatory steps are essential.
- Obtain a Portuguese Tax Identification Number (NIF): Required for all contracts, including property rentals, utilities, and banking. Non-residents must appoint a tax representative in Portugal.
- Open a Bank Account: A local account is mandatory for most residence visas and simplifies transactions such as rent payments and investment transfers.
- Secure Housing: Applicants must present proof of accommodation, either a rental contract or property deed, when applying for a visa or residence permit.
Madeira Corporate Services assists newcomers with these formalities, ensuring all documentation complies with Portuguese regulations.
5. Step 4: Apply for a Residence Permit
Once the visa is granted abroad, you may enter Portugal and apply for a residence permit through AIMA (Agency for Integration, Migration and Asylum) within 90 days.
The residence card is usually valid for two years and renewable for three additional years. After five years of continuous residence, you may apply for permanent residence or Portuguese citizenship, subject to language and integration criteria.
Residence in Portugal automatically grants access to public healthcare, education, and freedom of travel throughout the Schengen Area, provided conditions are met.
6. Step 5: Understand Taxes and Residency in Portugal
Tax Residency Rules
Under Portuguese law, an individual becomes a tax resident if they spend more than 183 days in the country during any 12-month period or maintain a habitual residence indicating an intention to stay. Residents are taxed on worldwide income, while non-residents are taxed only on Portuguese-source income.
The End of the NHR Regime
Portugal’s popular Non-Habitual Resident (NHR) regime, which offered reduced tax rates and foreign income exemptions, was revoked for new applicants after 31 December 2023.
Those relocating from 2025 onwards fall under the general tax regime, though Madeira continues to provide competitive tax conditions (lower personal income tax rates, when compared to the Portuguese mainland) and full access to Portugal’s 80+ Double Taxation Treaties, preventing double taxation on most foreign income.
Corporate and Investment Tax Advantages
Entrepreneurs operating through the Madeira International Business Centre (IBC) enjoy:
- A 5% corporate income tax rate on qualifying international profits, provided economic substance requirements are met;
- Exemptions from withholding tax on dividends, interest, and royalties (subject to conditions);
- Participation exemption on dividends and capital gains;
- Access to EU directives and treaty protection;Substantial reductions in municipal and stamp duties.
These benefits make Madeira a preferred location for establishing holding, trading, or service companies within the European Union.
7. Step 6: Moving Your Life and Business to Madeira
Relocating to Madeira offers more than tax efficiency. The island provides:
- Excellent international schools and a modern university with global partnerships;High-quality healthcare and low crime;
- A welcoming, multilingual community;
- Affordable real estate with sea views;
- Reliable digital infrastructure and coworking hubs.
Professionals, families, and retirees alike find Madeira combines European living standards with island serenity, a perfect balance for long-term residence and business growth.
8. How to Move to Portugal? Your Path to Living in Portugal Starts in Madeira
Understanding how to move to Portugal requires planning and compliance, but Madeira makes every step simpler. Whether you seek a tranquil retirement, remote work flexibility, or a strategic base for international business, Madeira delivers unmatched quality of life and one of Europe’s most competitive fiscal environments.
Contact Us
Madeira Corporate Services (MCS) provides full support for international clients moving to Portugal or investing through Madeira. Our team assists with immigration, company incorporation, accounting, and tax compliance under Portuguese and EU law.
This article is for informational purposes only on “How to Move to Portugal” and does not constitute legal or tax advice. Professional assistance should be sought before making any decision regarding immigration, residency, or taxation in Portugal.
The founding of Madeira Corporate Services dates back to 1996. MCS started as a corporate service provider in the Madeira International Business Center and rapidly became a leading management company… Read more
