The International Business Centre of Madeira
The International Business Centre of Madeira is an economic development instrument for the autonomous region of Madeira. It was created to modernise, diversify and provide for the international expansion of the autonomous region´s goods and services production structure, and to compensate for the structural constraints resulting from the reduced size of the domestic market and the ultra-peripheral status held by Madeira.
Entities operating under the framework of the International Business Centre of Madeira benefit from the most advantageous tax regime of the European Union, in terms of direct taxes (5% of income tax). Additionally, Madeira offers an environment of reduced bureaucracy, political and social stability and low operational costs.
Business Activities in the International Business Centre of Madeira
Business activities in the following fields can be carried out in the International Business Centre of Madeira:
- International services
Trading, consultancy, professional or technical services, holding or any other international services.
- Industrial free trade zone
Industrial or storage business activities, as long as they do not endanger public safety or national security.
- International shipping register
Maritime transportation, registration of ships, oil rigs and commercial or pleasure yachts.
Benchmarking
When comparing Madeira to other European Union (EU) jurisdictions, the following differences, to Madeira’s credit, are apparent:
- A more competitive, simple and straightforward tax regime;
- A state aid plan, previously negotiated with the EU;
- Certainty until 2027;
- Lower operational costs.
Legislation
Decree-Law no. 500/80, October 20
Authorizes the establishment of the Madeira Free Zone.
Regulative Decree no. 53/82, August 23
This Decree regulates several aspects of the functioning of the Free Zone, particularly regarding the types of activities that can be established there and the corresponding customs procedures.
Regional Regulative Decree no. 21/87/M, September 5
This Decree approves the Regulation of industrial, commercial and service Activities, integrated within the scope of Madeira’s Free Zone.
Decree-Law no. 212/94, August 10
This Decree-Law allows the constitution and permanence of Limited Companies, Joint stock companies and one-man companies licensed to operate in the Madeira Free Zone.
Decree-Law no. 250/97, September 23
Subjects to registration and publication the revocation and forfeiture of licenses granted to entities operating in the Madeira Free Zone.
Decree-Law no. 165/86, June 26
This Decree-Law establishes the regime of tax and financial incentives for companies incorporated in the Madeira Free Zone.
Article 33 of the Tax Incentive Statute
Tax benefits granted to entities licensed before December 31, 2000 to operate within the institutional framework of the Madeira Free Zone.
Article 34 of the Tax Incentive Statute
Taxable income obtained within the Free Zone of Madeira and Santa Maria Island.
Article 35 of the Tax Incentive Statute
Tax benefits granted to entities licensed as of January 1, 2003 to operate within the institutional framework of the Madeira Free Zone.
Article 36 of the Tax Incentive Statute
Tax benefits granted to entities licensed as of January 1, 2007 to operate within the institutional framework of the Madeira Free Zone.
Article 36-A of the Tax Incentive Statute
Tax benefits granted to entities licensed as of January 1, 2015 to operate within the institutional framework of the Madeira Free Zone.
Decree-Law no. 325-A/88, October 3
Regulates the establishment and operation of companies or branches of offshore trusts in the Madeira Free Zone
Decree-Law no. 149/94, May 25
This Decree-Law regulates the incorporation of fiduciary management instruments (trusts).
Ordinance of the Autonomous Region of Madeira no. 222/99, December 28
Revises tax rates for entities licensed to operate within the institutional framework of the International Business Centre of Madeira.
Decree-Law no. 96/89, March 28
Authorizes the establishment of the International Shipping Register of Madeira - MAR.
Ordinance no. 715/89, de 23 de August
Approves Regulation regarding the International Shipping Register of Madeira.
Decree-Law no. 192/2003, August 22
Approves applicable regulations for recreational crafts registered or to be registered in the International Shipping Register of Madeira
Ordinance no. 134/92, May 20
Defines tax rates for merchant ships registered in the International Shipping Register of Madeira - MAR.
Ordinance no. 135/94, August 1
Establishes the regime for applicable taxes for recreational crafts registered under the International Shipping Register of Madeira - MAR.
