We wish to inform all interested investors that MIBC licenses for a CORPORATE TAX RATE OF 5% will only be issued until 31 December, 2024. To ensure smooth processing, we strongly advise incorporating your companies before the second week of December. Kindly take immediate action to avail the benefits of the 5% tax rate. The future MIBC regime is still pending negotiations.
Incorporating a Company in Madeira (Portugal)
If you want to incorporate in Portugal (or relocate your company) and still get some tax benefits, feel free to learn more about the Tax Regime on the island by Downloading our FREE Brochure.
In this brochure, you will find all the information that you need.
Why Incorporate in Madeira Island?
From the get-go, Madeira Island is the Portuguese territory with the Highest TAX EFFICIENCY for companies and investors.
Madeira International Business Center (MIBC)*
Corporate tax rate of 5%1
Autonomous Region of Madeira
Portuguese mainland
Autonomous Region of Madeira
Madeira International Business Center (MIBC)*
Corporate tax rate of 5%1
Portuguese mainland
* – European Union State Aid Regime
1 – applicable only to profit derived from clients that do not qualify as residents, for tax purposes, in Portuguese territory.
What is the Corporate TAX Regime in Madeira?
The BEST Option to Incorporate in Portugal
General Corporate Tax Rate
General Corporate Tax Rate of the first EUR 25 000 of profit (Small-Medium Enterprises)
Withholding Tax on Dividends
Full-time local employees required
Investment in Fixed Tangible or Intangible Assets
* – European Union State Aid Regime
1 – applicable only to profit derived from clients that do not qualify as residents, for tax purposes, in Portuguese territory.
2 – provided shareholders do not qualify as residents for tax purposes in blacklisted jurisdictions.
3 – Participation exemption as foreseen in the Council Directive 2011/96/EU of 30 November 2011 (latest legal version as transposed into Portuguese tax law). Generally speaking, the parent company must hold more than 10% of the subsidiary company’s shares for more than one year. Shareholder companies must not qualify as residents for tax purposes in blacklisted jurisdictions.
4 – The entire economic activity of the MIBC licensed company must be carried out solely by employees who qualify as residents of the Autonomous Region from an immigration and taxation standpoint. The number of employees required varies in proportionately with the taxable profit.
5 – Investment shall be realised in assets located or received within the scope of the MIBC, used within said MIBC and necessary to carry out the business activities conducted within the scope of the MIBC. Furthermore, the assets acquired must remain within the MIBC during the entire period it enjoys this status or during its useful lifetime, whichever period may be shorter, without being transferred. Nor may such assets be leased or ceded to third parties for their use unless the corporate purpose or business activity of the MIBC is such lease or cession, and always provided that there is no direct or indirect link with the lessee or transferee of the said property. It shall be understood that this requirement is not infringed when the goods are transferred and the sum of money realised is reinvested in new fixed assets under the same conditions within the space of one year. In the case of used assets, these may not have been previously applied for a MIBC investment of another company.
Who can benefit from this tax incentives?
Companies, International Services Providers and Holdings
Shipping Companies, Vessels & Yachts
