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Accounting and Tax in Madeira

Accounting and tax in Madeira require a thorough understanding of Portuguese regulations, the specific characteristics of this Autonomous Region and, where applicable, the regime of the Madeira International Business Centre.

Although it is a small territory fully integrated into Portugal and the European Union, Madeira applies two main corporate tax rates: the Autonomous Region’s standard rate, currently 13.3%, and the reduced rate of 5% for companies licensed under the Madeira IBC. 

Both are incomparably lower than the general rate applied in mainland Portugal, which stands at 19% (in 2026).

With 35+ years’ experience, NEWCO provides specialist accounting and tax services in Madeira, supporting local businesses, international investors and companies licensed by the Madeira IBC.

We know how.

Are you looking for a local partner in Madeira?

Our team comprises certified accountants, tax specialists and lawyers with experience in supporting Madeira IBC companies.

Ask us for a quote!

What does our accounting and tax service in Madeira include?

Properly organised accounts enable you to meet your legal obligations, monitor your company’s performance and make decisions based on up-to-date financial information.

NEWCO’s accounting and tax service in Madeira is tailored to each client's size, activity, structure, and operational volume. It may include:

  • Accounting and tax advice;
  • Issuing invoices and receipts;
  • Exporting and validating SAF-T invoicing files;
  • Reporting information to the Bank of Portugal, where applicable;
  • Classification, posting, system integration and allocation of accounting entries;
  • Reconciliation of bank accounts, customer accounts, supplier accounts and other third-party accounts;
  • Organisation and filing of documents;
  • Preparation and submission of VAT returns, on a monthly or quarterly basis;
  • Compliance with reporting obligations, including Form 30, IES (Simplified Corporate Information) and summary returns, amongst others;
  • Preparation of balance sheets, financial statements and accounting reports;
  • Preparation of the Annual Management Report, where applicable;
  • Preparation and submission of Form 22 for the calculation of corporation tax;
  • Monitoring the filing of accounts;
  • Accounting control of inventories and fixed assets;
  • Preparation of management reports and supporting documentation;
  • Assistance in the event of an audit;
  • Preparation of the documents required for the payment of taxes;
  • Calculation of payments on account and additional payments on account;
  • Accounting and tax year-end closing;
  • Support in meeting the specific obligations of companies licensed by the Madeira IBC;
  • Comprehensive payroll processing service.

The scope of the service is tailored to your company’s specific needs, avoiding generic solutions or those ill-suited to your business's reality.

What is the Madeira International Business Centre?

The Madeira International Business Centre, also known as the Madeira Free Trade Zone, is a regime designed to promote investment and diversify the regional economy.

The Madeira IBC is integrated into the Portuguese and European legal frameworks and covers three main areas:

International Services

International Services

Madeira Industrial Free Zone

Madeira Industrial Free Zone

Madeira International Ship Register

Madeira International Ship Register

Duly licensed companies may benefit from a specific tax regime, including a reduced corporate tax rate of 5 % on income that meets the conditions set out in the regime. 

Eligibility for these benefits depends, amongst other factors, on the nature of the business activity, the nature of the operations, the creation and maintenance of jobs, and the existence of an appropriate corporate structure in Madeira.

Companies operating under the Madeira IBC benefit from specialist support with accounting and tax in Madeira, given the specific features of this tax regime.

Which companies can benefit from the Madeira IBC regime?

The Madeira IBC regime may cover companies carrying out eligible activities in the areas of international services, trade, industry, transport, communications, technology, the management of non-financial shareholdings and other activities provided for in the legislation.

However, certain activities and sectors are excluded. A preliminary assessment of eligibility should be carried out by specialists in accounting and taxation in Madeira, particularly where international operations or more complex corporate structures are involved.

In addition to the activity being eligible, the company will need to obtain a licence to operate within the Madeira IBC and meet the requirements regarding economic substance, employment and investment that apply to its case.

Simplify your company’s accounting in Madeira

Count on NEWCO’s expert support to ensure compliance with your tax and accounting obligations, with a service tailored to your business needs.

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What accounting and tax obligations apply in Madeira?

A company licensed in the Madeira IBC is a Portuguese company and is subject to the accounting, tax, company law and tax compliance rules applicable in Portugal.

Compliance with legal obligations requires a rigorous approach to accounting and taxation in Madeira.

Depending on the company’s activity, size and structure, the main obligations may include:

  • Keeping organised accounts;
  • Appointing a certified accountant;
  • Issuing invoices in accordance with Portuguese rules;
  • Reporting invoicing details to the tax authorities;
  • Preparing and submitting VAT returns on a regular basis;
  • Preparation and submission of Form 22;
  • Submission of the IES (Simplified Corporate Information);
  • Preparation and approval of annual accounts;
  • Filing of the accounts;
  • Maintenance and reporting to the Central Register of Beneficial Owners;
  • Preparation of declarations relating to payments to non-resident entities;
  • Compliance with transfer pricing obligations, where applicable;
  • Processing of salaries and compliance with employment and social security obligations;
  • Preparation of information requested by the authorities responsible for monitoring the Madeira IBC regime;
  • Documentation of the activities actually carried out and of the economic substance requirements;
  • Conducting audits or statutory certification of accounts, where legally required.

Accounting should not merely be an administrative obligation. Efficient management of accounting and tax affairs in Madeira helps to reduce the risk of non-compliance and serves as a tool for control, planning and decision-making.

With NEWCO, you benefit from:

Dedicated and experienced certified accountants, familiar with domestic companies, international operations and Madeira IBC-licensed companies;

Solutions tailored to your specific situation, defined according to your company’s activity, size and complexity;

A comprehensive service from A to Z, integrating accounting, tax, payroll processing and corporate services;

Close and regular communication, so that you understand your obligations and can anticipate relevant decisions;

Support in various languages, facilitating engagement with international investors and teams.

Why choose NEWCO?

With over 35 years’ experience, NEWCO is a leading name in accountancy and tax in Madeira for both domestic and international companies.

Working with a local partner with this level of experience ensures that accounting and tax obligations are met from day one, with no surprises due to unfamiliarity with local regulations.

Our experience enables us to support everyone from small local businesses to large international groups and private clients.

What sets us apart

  • Tailored solutions
  • A dedicated, multidisciplinary team
  • A single point of contact
  • 35 years of international experience
  • Fluent in English, Spanish and French

Don’t let accounting become a headache

Our team of qualified accountants is on hand to help. Contact us for a quote.

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Frequently Asked Questions about Accounting and Taxation in Madeira

It is not compulsory to appoint a certified accountant immediately when applying to incorporate a company. However, the company will need to appoint a certified accountant to handle its organised accounts and submit the declaration of commencement of business to the Portuguese Tax Authority (AT). For this reason, although a certified accountant is not essential for formalising the initial application for incorporation, it is advisable to involve one from the outset. This ensures that the company’s corporate tax (CIT) and VAT classification, business activity codes, start date, reporting obligations and, where applicable, the treatment of transactions covered by the Madeira International Business Centre regime are correctly defined. Professional support with accounting and tax matters in Madeira ensures timely compliance with tax obligations.

As in the rest of Portugal, companies established in Madeira are required to maintain proper accounts and to appoint a certified accountant. The certified accountant is responsible for ensuring the technical accuracy of the accounts and monitors the company’s compliance with its accounting and tax obligations. This obligation applies both to companies operating under Madeira’s general regime i.e. subject to the standard corporate tax rate of 13.3% and to companies licensed to operate in the Madeira International Business Centre.  This is an obligation applicable to most companies carrying out business activities and requiring accounting and tax services in Madeira.

Companies duly licensed by the Madeira IBC (Madeira Free Trade Zone) may benefit from a 5 % corporate tax rate on eligible income, subject to the limits set out in the regime. The rate does not automatically apply to all income or to all companies based in Madeira.

The regime covers various activities in the service sector, industry, trade, transport, communications, technology, education and the management of non-financial shareholdings. Certain activities and sectors are excluded, so eligibility must be confirmed before the company is incorporated or licensed.

Companies established in Madeira are generally subject to the Portuguese tax calendar. A professional accountancy and tax service in Madeira helps to ensure timely compliance with all these obligations:

  • Corporate Tax Return (Form 22): generally by the end of May of the year following the financial year to which it relates;
  • IES (Simplified Corporate Information)/Annual Return: generally by 15 July;
  • Corporate tax (IRC) payments on account: usually in July, September and December;
  • VAT returns and payments: on a monthly or quarterly basis, depending on the company’s circumstances;
  • Withholding Tax deductions: generally paid monthly;
  • Social Security contributions: paid monthly, where employees are employed;
  • Reporting of invoices and inventories: by the deadlines set annually;
  • Form 30: relating to certain payments made to non-resident entities.

There are other obligations depending on the business activity, size, international operations, the presence of employees or whether the company is registered with the Madeira International Business Centre.

Yes. NEWCO provides an integrated accountancy and tax service in Madeira, which may include company incorporation, support with licensing at the Madeira IBC, registered office arrangements, accountancy, tax compliance, payroll processing and other management and compliance services. This integrated service allows the entire process to be managed through a single point of contact, a hallmark of NEWCO’s way of working.

Yes. A company established in Madeira may carry out transactions with customers in mainland Portugal. For service companies licensed by the Madeira IBC, income from transactions with entities resident in Portugal that are not licensed by the Madeira IBC does not, as a rule, benefit from the 5 % rate, and is subject to the applicable corporation tax rate (13.3 % in 2026). There are specific rules for certain activities carried out in the Industrial Free Zone.