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Offshore firm registration in Madeira 2022

Offshore company registration in Madeira: advantages

31. 05. 2022
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Madeira is located off the coast of northwest Africa, part of Portugal. It is considered one of the most attractive regions for offshore. Among the advantages of registering a company in Madeira 2022 are high level of confidentiality, tax benefits, access to the EU market.

Status of Madeira in the EU

Madeira is part of Portugal, so it can enjoy all the opportunities offered by membership of the European Union. This means that businesses registered here have free access to the European market.

Plus - Madeira is away from Europe, so it has a number of benefits, primarily in tax terms for businesses that have not only decided to open a firm in Madeira 2022, but actually work. This allowed the jurisdiction to obtain official status - Madeira Free Trade Zone (IBCM or MIBC).

Tax benefits

  • Corporate income tax - 5%;
  • Non-resident single and corporate shareholders are exempt from tax on dividends from Madeira companies. Mandatory condition - they must not reside in the countries that Portugal has blacklisted;
  • No taxation applies to income that the offshore company received outside Madeira;
  • Documents, contracts and other actions requiring state registration are 80% exempt from stamp duty. Mandatory conditions - the other parties involved must not be Portuguese nationals. Alternatively, they must be incorporated in Madeira as an IBC;
  • Companies in Madeira are given a Portuguese VAT number;
  • Portugal has signed double taxation agreements with many countries around the world. These agreements also apply to Madeira;
  • The Madeira International Register of Shipping (MAR) offers many interesting opportunities and tax benefits to shipping and yachting companies, except those involved in fishing. The benefits affect not only the operation of the companies, but also the employees.

Registration of trusts

Madeira is the only jurisdiction in Portugal where it is possible to register a trust. At the same time, the contract must mention the law that will regulate its operation. If desired, the chosen law can be replaced by amending the document.

When registering trusts, it should be taken into account that they can not engage in purely financial activities. But they do not have to pay taxes on dividends that were received from stocks, royalties or interest on deposits. It is also possible to pay no tax on all non-financial income that has been distributed to the beneficiaries of the trust. The condition is that they must be legal entities licensed to operate in Madeira or not resident in Portugal.

How to open an offshore in Madeira

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