Madeira to reduced its corporate tax
By Miguel Silva Reichinger Pinto Correia No Comments
Last Updated on December 10, 2020 by Miguel Silva Reichinger Pinto Correia
The Regional Government of Madeira is set to reduce the Autonomous Region’s corporate income tax from the current 20% rate to a 14,7% rate (the Portuguese current mainland CIT is 21%).
Madeira’s Regional Budget for 2021, which foresees the CIT reductions, was presented on November 30 the Legislative Assembly of the Autonomous Region of Madeira and is expected to be approved by the Government’s coalition.
If the CIT of 14,7% is approved by Madeira’s parliament, Madeira will have a more attractive CIT than major European economic power houses such as: Austria (25%), Germany (aprox. 25%), France (30%), Italy (27,9%), Luxembourg (25%), Netherlands (25%), etc…
This new 14,7% CIT, combined with Madeira’s internet infrastructure, full EU law compliance and friendly expat environment, makes the island the perfect location to conduct international business in Portugal and Europe. Furthermore, special incentives such a the Madeira International Business Center (a reduced 5% CIT) and a 10-year tax holiday for expats looking into to relocate to the island, can be also available, provided that several conditions are met by the investors.
MCS and its multi-disciplinary team, with more than 20 years of expertise, is read to assist you in incorporating your business on the island. Feel free to contact us.