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.
- 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.