Madeira is an excellent option for setting up international companies. This island, located in the Atlantic Ocean, 1077km from mainland Portugal, with approximately 250,000 inhabitants, is the population and economic center of the Madeira Archipelago, which also includes Porto Santo, the Desertas Islands, and the Selvagens Islands. The capital is the city of Funchal.
Madeira is an autonomous region of Portugal with its own local government. This region enjoys a certain degree of political, administrative, financial, economic, and fiscal autonomy, but is fully integrated into the Portuguese legal system and, as such, into the European Union.
Madeira's economy is diverse, with a focus on the tertiary sector. It is the Portuguese region with the third highest GDP per capita. The main economic sectors are tourism and international services. Organic farming, industry, the blue economy, and green technology are fast-growing sectors.
Here, the attractive and prosperous business environment is combined with a stable and secure social environment. Add to that the stunning landscapes and mild climate, and it's no surprise that more and more investors are choosing to set up a company in Madeira.
In addition to enjoying the same advantages as Portuguese companies, all companies in Madeira also benefit from a reduced tax rate – 14.7% or 5% if they are licensed to operate in the International Business Centre of Madeira (IBCM).
Full integration into the European market, security, stability, and a thriving business environment are some of the advantages when you set up a company in Madeira.
The International Business Centre of Madeira (IBCM) offers even more advantageous conditions for international companies, namely a reduced corporate income tax rate – just 5%, among several other advantages.
When you set up a company in the International Business Centre of Madeira, certain eligibility requirements must be met, and the company to be set up must have an appropriate level of substance located in Madeira.
Companies in Madeira follow the same tax rules as other Portuguese companies. However, there are some differences: the tax rate is lower, and Madeiran companies can benefit from all the advantages of the International Business Centre.
Portuguese companies are subject to a series of obligations of a contributory, accounting, and fiscal nature that result from the application of the rules and regulations in force in Portugal and in the European Union.
Companies in Madeira fulfill the same obligations as other companies in Portugal.
There are various types of companies in Portugal, which differ in the number of shareholders and their level of responsibility, the way in which the share capital is represented, their administration and supervision, and greater or lesser flexibility of management.
When you set up a company in Madeira, the same rules apply as with other Portuguese companies.