Legislation of Madeira

Service packages Legislation Tax System Audit Services

List of laws and regulations

Act name
Scope of law
Corporate Income Tax
Personal Income Tax
Creation of a free economic zone in Madeira
Conducting activities in Madeira
Resident card
Industrial, commercial and service activities in Madeira
Establishment and operation of companies licensed to operate in Madeira
Registration and publication of the cancellation and revocation of the license to operate in Madeira
Establishment and operation of companies or branches of offshore trusts in Madeira
Registration of fiduciary management instruments (trusts)
Tax rates for companies operating in Madeira
Creation of the International Register of Madeira Ships
International Register of Madeira Ships
Recreational vessels registered or intended to be registered with the International Registry of Madeira Ships
Tax rates for merchant ships registered with the International Madeira Shipping Registry
Taxes for recreational vessels registered with the International Madeira Ship Registry
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Tax treaties entered

Algeria
Andorra
Austria
Bahrain
Barbados
Belgium
Brazil
Bulgaria
Canada
Cape Verde
Chile
China
Colombia
Croatia
Cuba
Cyprus
Czech Republic
Côte d'Ivoire
Denmark
Estonia
Ethiopia
Finland
France
Germany
Greece
Guinea-Bissau
Hong Kong
Hungary
Iceland
India
Indonesia
Ireland
Israel
Italy
Japan
Kazakhstan
South Korea
Kuwait
Latvia
Lithuania
Luxembourg
Macao
Malta
Mexico
Moldova
Montenegro
Morocco
Mozambique
Netherlands
Norway
Pakistan
Panama
Peru
Poland
Qatar
Romania
Russia
San Marino
Saudi Arabia
Senegal
Singapore
Slovakia
Slovenia
South Africa
Spain
Sweden
Switzerland
São Tomé and Príncipe
Timor-Leste
Tunisia
Turkey
Ukraine
United Arab Emirates
United Kingdom
United States
Uruguay
Venezuela
Viet nam

Tax Exchange Information Agreement (TIEA)

Andorra
Anguilla
Antigua and Barbuda
Belize
Bermuda
British Virgin Islands
Cayman Islands
Dominica
Gibraltar
Guernsey
Isle of Man
Jersey
Liberia
Saint Kitts and Nevis
Saint Lucia
Turks and Caicos Islands

List of state regulatory authorities

Madeira Regional Government
International Business Center of Madeira
Portugal Trade & Investment Agency
Portuguese Chamber of Chartered Accountants

Corporate info

Legal system
Civil law
Types of entity
Sole proprietor (Empresário em Nome Individual);
Individual limited liability establishment (Estabelecimento Individual de Responsabilidade Limitada);
Partnership company (Sociedade em Nome Coletivo);
Limited partnership company (Sociedades em Comandita);
cooperative;
Limited liability company (Sociedade por Quotas);
Public limited company (Sociedade anônima);
Branch of a foreign entity
Shelf companies permitted
No
Incorporation timescale for a new company
1 day
Company suffix
Limitada (Lda)
Sensitive words
Bank, building society, savings, loans, insurance, assurance, reinsurance, fund management, asset management, investment fund or any name that may imply an activity associated with the banking and insurance industries
Cyrillic alphabet permitted in company name
No
Local registered office
No
Local registered agent
No
Information to be kept at the registered office
VAT number; Name (certificate of admissibility); Directors information (copy of the identification document); Share capital (proof of the deposit of the share capital), Shareholders information (fiscal number and address)
Seal required, type of seal
Not required
Redomiciliation (to, from) permitted
Permitted

Director and secretary

Minimum number of directors
1
Residency requirements for directors
No
Corporate directors permitted
Yes
Directors’ meetings/frequency/location
No requirements
Disclosure to local agent
Yes
Disclosure to public
Yes
Company secretary required
No
Residency requirements for a secretary
No
Qualified secretary required
No
Corporate secretary permitted
No

Shareholder and beneficiary

Minimum number of shareholders
1
Residency requirements for shareholders
No
Corporate shareholder permitted
Yes
Meetings/frequency/location
Yes / annually / at the registered office in Madeira
Disclosure to local agent
Yes
Disclosure to public
Yes
Beneficiary info disclosure to
No

Shares and share capital

Minimum authorized share capital
1
Minimum issued share capital
1
Minimum paid share capital
1
Authorized capital payment deadlines
No requirements
Issued capital payment deadlines
By the end of the first accounting year
Standard currency
EUR
Standard authorized share capital
1
Standard par value of shares
1
Shares with no par value permitted
No
Bearer shares permitted
No

Taxes

Personal tax
13,25-48%
Сorporate tax
21%
Corporate tax (in detail)
The standard tax rate is 21%. In some regions and for small enterprises, the rate may be lower in terms of part of income.
Capital gains tax
21%
Capital gains tax. Details
Capital gains are included in the general tax base
VAT
23%
VAT. Details
The standard VAT rate is 23%. Reduced rates of 13% and 6% apply to certain goods and services
Withholding tax
25% (dividend), 25% (interest), 25% (royalty)
Other taxes
No
Exchange control
No
Government fee
Stamp duty
Rates vary by transaction

Accounts

Requirement to prepare accounts
Yes
Requirement to file accounts
Yes
Publicly accessible accounts
Yes
Requirement to file Annual Return
No
Publicly accessible Annual Return
No
Audit required
No

General information shortly

Location
An island in the Atlantic Ocean; 1 000 km from mainland Portugal
Total area
801 sq.km
Population
253 945 (2019)
Capital
Funchal
National currency
Euro
Conditional reduction of currency
EUR
Against USD
1,08 (2024)
Climate, average max and min t°
Subtropical climate; avg. maximum temperature (July) +23°; avg. minimum temperature (January) +15°
Time difference from Moscow
- 2 hours
Dialing code
+351 (291)
State language
Portuguese
Ethnic groups
Portuguese
Literacy rate
93%
History
Madeira began to appear on the maps since 1339. Officially, it was discovered in 1419 by two captains under service to Prince Henry the Navigator, João Gonçalves Zarco and Tristão Vaz Teixeira. Soon first settlers inhabited the island, then the archipelago was promulgated the part of Porugal. The British occupied Madeira as a result of the Napoleonic Wars, a consented occupation starting in 1807 and concluding in 1814 when the island was returned to Portugal. Since 19th century the island has become famous as a resort area. On 1 July 1976, following the democratic revolution of 1974, Portugal granted political autonomy to Madeira, celebrated on Madeira Day. The region now has its own government and legislative assembly.
Credit rating
BBB
Government type
Autonomous region of Portugal
Executive branch
President and Regional Government
Legislative branch
Regional Parliament
Judicial branch
A part of Portuguese judicial branch: Constitutional Court, the Supreme Court of Justice, the Court of Auditors, the Supreme Administrative Court, and lower courts
Unemployment
6,8% (2020)
GDP per capita rank
47 (2020)
Corruption perceptions index rank
62 (2021)

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