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Benefits of offshore Madeira in 2022

Buy an offshore in Madeira: the advantages of the island

2022-01-04
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Madeira is one of the most attractive places in the EU for buying companies and international activities. To attract businesses to the remote region, the Portuguese government has offered special tax incentives. Among them - low corporate tax (5%), exemption from payments received abroad, the possibility to avoid double taxation, etc. Excellent climate, developed infrastructure, fast Internet - the list is not all the advantages that make it necessary to buy an offshore in Madeira 2022.

Features of Madeira

Madeira is part of Portugal, so the company bought has free access to the EU market. The archipelago is located near Africa, so to stimulate business, the influx of investment, the EU has officially allowed tax breaks. The main condition for companies that receive them is not to exist nominally on paper, but to actually work. If an entrepreneur not only buys a company, but also creates 8 new jobs, will be able to get a Golden Visa, which provides residence permit with the prospect of citizenship in Portugal.

Tax benefits

  • Reduced rate of corporate income tax - 5%. To get it, you must create at least 6 jobs. If the number of employees will be less, need regular investment in the first two years from €75K (amount subject to change);
  • Offshore Madeira 2022 is exempt from withholding tax on the distribution of dividends, if certain conditions are met (our specialist will explain in more detail);
  • There is no withholding tax on interest, services and royalties, dividends paid to non-residents;
  • On the territory of Madeira are valid agreements for the avoidance of double taxation, signed by Portugal;
  • The treaties on the protection of investments signed by Portugal are valid;
  • There are no foreign exchange controls;
  • There are no duties on goods that enter Madeira. There are also no duties on goods that were produced here and exported to the EU. In this case, the raw materials, components for their manufacture must not be imported from the EU;
  • Discount of up to 80% on stamp duty, municipal property taxes, transfer of title.

What is the best business to buy in Madeira

In order to benefit from preferential taxes, one must buy an offshore company in Madeira that focuses on the following areas:

  • International trade;
  • E-commerce;
  • Telecommunications;
  • Consulting services;
  • Real estate investments.

If you are interested in banking, brokerage, insurance activities, the company does not get the benefits, will have to operate under the standard taxation.

Mandatory requirements for offshore business

Benefits are given only to companies that provide jobs. Employees must necessarily be local residents. Also on the island must be the headquarters, accounting must be carried out necessarily.

How to buy an offshore in Madeira

If you want to run a business in Madeira, contact IT-OFFSHORE experts and we will help you.

Apply now

and get a personalized offer