Jurisdictions

Why Incorporate in Madeira?

Key Benefits & Requirements

Having been expressly approved by the European Union, the MIBC is a credible and stable location for international operations, providing an extremely competitive low corporate income tax rate. The recently approved Tax Regime IV provides the following main tax benefits:

• A reduced corporate tax rate of 5%, guaranteed until 2027
• Exemption of withholding tax on dividends paid to non Portuguese resident shareholders (corporate or individuals), as long as these are not resident in a black listed jurisdiction
• No withholding tax on interest and other forms of payment for shareholders’ loans, capital allowances or advances made by the shareholders to the company, as long as the shareholders are non-residents in Portugal
• Worldwide participation exemption regime applicable to dividends, reserves, capital gains and losses
• Exemption of withholding tax on royalties, services fees or interest paid to third parties
• Possibility to apply Portugal’s recent Patent Box Regime
• Capital gains tax exemption on the sale of participations held in the Madeira company
• Exemption of notarial and registration fees
• 80% reduction on the rate of Stamp Duty, municipal transaction taxes and municipal property taxes
• 80% reduction on regional and municipal surcharges

Services Offered

• Incorporation, structuring, and management of Madeira companies set up within the Services Sector of the Madeira International Business Centre
• Day-to-day company administration including opening and operating bank accounts, issuing invoices, VAT management, accounting and bookkeeping services
• Registration of vessels, yachts and ships
• Management of shipping companies
• Specialist advice regarding the use of Madeira’s Industrial Free Trade Zone
• Advice and structuring required for individuals who wish to take use of Portugal’s Golden Visa scheme or Non Habitual Residents regime