According to Portuguese online daily financial newspaper Dinheiro Vivo, Venezuelan President Nicolás Maduro has invited foreign entrepreneurs and businesses to invest in Venezuela and jumpstart the local economy.
“If foreign companies want to come to Venezuela and undertake joint ventures with local private and publicly owned companies or invest on their own in accordance with our legislation, they can come to Venezuela because it is the land of opportunity,” he stated. He emphatically added, “All investors are welcome.”
According to the article published on the 18th of August in Dinheiro Vivo, Nicolás Maduro explained that Venezuela’s government wants “serious capital for foreign investment” and it will guarantee foreign investor productivity. “We guarantee you will have all you need to make your business productive,” he stated.
Although it is a country of many opportunities, the fact is that foreign investors have had to deal with much uncertainty in the past: since 1999, dozens of foreign-owned companies have been nationalized in Venezuela. These statements by Nicolás Maduro are reason for optimism and for a positive outlook, but it is essential that entrepreneurs correctly structure their investments in Venezuela in order to minimize risks and maximize results.
Madeira offers a framework that fosters such investments, thanks to excellent relations between Portugal and Venezuela and the special tax regime of the International Business Centre of Madeira that combines legal security with tax efficiency.
You can download our guide on Investing in Venezuela and find out how to maximize your investments in Venezuela via the International Business Centre of Madeira.
According to Notice 88/2013 published today, all the internal formalities required for the approval of the double taxation treaty between Portugal and Japan, signed on the 19th of December 2011, have been met.
Under the terms of the article 28, such double tax treaty entered into force on the 28th of July 2013.
Negotiations have now been concluded between the Portuguese Government and the European Commission (EC) to alter the regime that applies to companies licensed to operate under the scope of the International Business Centre of Madeira (IBC), clearly strengthening the IBC’s credibility, security and transparency.
The EC concluded that the changes proposed by the Portuguese Government are compatible with the European internal market. The proposed changes, which will soon be transposed into Portuguese law, consist of an increase of 36.7% in the tax base benefiting from the reduced tax rate in force for IBC companies (5% until end 2020).
As soon as the amended legislation, which has already been authorised, comes into force, the new ceilings will be as follows:
i) Tax base of EUR 2.73 million – creation of 1 to 2 new jobs
ii) Tax base of EUR 3.55 million – creation of 3 to 5 new jobs
iii) Tax base of EUR 21.87 million – creation of 6 to 30 new jobs
iv) Tax base of EUR 35.54 million – creation of 31 to 50 new jobs
v) Tax base of EUR 54.68 million – creation of 51 to 100 new jobs
vi) Tax base of EUR 205.5 million – creation of more than 100 new jobs
The decision also mentions the revision of the IBC tax regime which is to apply to companies that are licensed after 2014, whose negotiations will be getting underway in the near future.
This EC decision not only means that the IBC’s attractiveness is heightened but also that the statute of a tax regime is supported and formally authorised by the European Union.
State aid SA.34160 (2011/N) – Portugal – Amendment of Zona Franca da Madeira scheme N 421/2006