GSL / Offshore and International Law / Offshore zones / Western Europe / Madeira / Legislation of Madeira

Legislation of Madeira

Service packages Legislation Tax System

List of laws and regulations

Act name
Scope of law
commercial companies
prevention of the use of the financial system for the purpose of money laundering
creation of a free trade zone in Madeira
operations in Madeira
residence permit
industrial, commercial and service activities, integrated within the scope of Madeira’s Free Zone
constitution and permanence of companies licensed to operate in the Madeira Free Zone
registration and publication the revocation and forfeiture of licenses granted to entities operating in the Madeira Free Zone
уestablishment and operation of companies or branches of offshore trusts in the Madeira Free Zone
incorporation of fiduciary management instruments (trusts)
tax rates for entities licensed to operate within the institutional framework of the International Business Centre of Madeira
establishment of the International Shipping Register of Madeira
International Shipping Register of Madeira
recreational crafts registered or to be registered in the International Shipping Register of Madeira
tax rates for merchant ships registered in the International Shipping Register of Madeira
applicable taxes for recreational crafts registered under the International Shipping Register of Madeira
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Algeria
Andorra
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Bahrain
Barbados
Belgium
Brazil
Bulgaria
Canada
Cape Verde
Chile
China
Colombia
Croatia
Cuba
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Finland
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Guinea-Bissau
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Sweden
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Timor-Leste
Tunisia
Turkey
Ukraine
United Arab Emirates
United Kingdom
United States
Uruguay
Venezuela
Viet nam

Tax Exchange Information Agreement (TEIA)

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

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
Евро
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
14,5-48%
Min. rate for corporate 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
No
Capital gains tax. Details
Madeira has no capital gains tax
VAT
23%
VAT. Details
Стандартная ставка НДС составляет 23%. В отношении некоторых товаров и услуг применяются пониженные ставки в размере 13% и 6%
Withholding tax
25%/25%/25%
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
0.93 (2022)
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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