Company registration in Portugal (Madeira)

Madeira is an archipelago situated in the north Atlantic Ocean, southwest of Portugal. Today, Madeira has an autonomous Government which administers a territory of 770 sq.km. Besides the tourists, archipelago is increasingly gaining the interest of international investors due to its favorable business environment and location in Europe.

Benefits of registering a company in Madeira:

  • DDT’s signed with more than 50 countries;
  • A reduced corporate tax rate of 5%, guaranteed until 2027;
  • EU VAT numbers can be obtained for entities;
  • Relatively short period of obtaining a business visa (from 5 to 21 days);
  • Schengen visa-free zone;
  • Fast and simple incorporation process;
  • Strong correspondence networks are maintained around the world by local banks;
  • Low cost of living compared to other EU corporations.

Company type:

  • Public Company (S.A.);
  • Private Limited Company (Lda.).

Tax rates on Madeira:

  • The corporate tax rate for all companies is 27.5%;
  • VAT – 19%;
  • Tax on Dividends – 25%;
  • Royalty or license fee – 15%;
  • Winning income tax – from 23% to 35%;
  • Tax on Rental income – 15%;
  • Tax on consulting, management services – 15%.

According to Portuguese tax law dividends received by a resident company from another resident company are exempt from tax, provided that the recipient is not considered as a transparent person and held directly at least 10% of the capital.

The company’s registration in Madeira and bank account opening with the Bank of Portugal is suitable for the following business activities: hospitality, transport, restaurant business, IT-technology, services, light industry, pharmaceuticals, food industry, wine making.

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