We have updated our brochure about Madeira, following the recent changes introduced by the 2014 Government Budget (GB) and the reforms made to corporate taxation in Portugal.
These various measures have considerably increased the competitiveness of the International Business Centre of Madeira (IBCM), making Madeira holding companies in particular an excellent tool in the European Union (EU) for managing international shareholdings.
It is no surprise that IBCM has peaked the interest of companies that wish to optimize their international operations: Madeira is an autonomous region of Portugal, a member of the EU and OECD and benefits from special conditions within the scope of EU state aid due to the fact that it is an island-based economy in a remote location, which allows it to offer a preferential tax regime, fully integrated into the European common market, offering the lowest tax rates in the European Union.
There are various tax and operational advantages:
- Availability of qualified labour with excellent knowledge of foreign languages
- Very competitive operating costs when compared with other European jurisdictions
- A secure and transparent tax regime authorized in advance by the European Union
- The corporate income tax rate is 5% (until 2020)
- A worldwide participation exemption regime applicable to dividends, reserves, capital gains and capital losses
- Exemption from withholding tax on the distribution of dividends and reserves to corporate shareholders (subject to certain conditions)
- No withholding tax on royalties, services or interest paid to third parties
- Tax credit for international double taxation, both legal and economic
- Exemption from stamp duty
Download our brochure in order to find out more about these advantages.