How long does the 5% regime last?

The current regime runs to the end of 2028 for licensed companies, with historical precedent for renewal subject to European Commission state-aid approval.

How many employees do I need?

At least one full-time equivalent in Madeira, with the tax benefit capped by headcount. Companies with one to two employees also need a minimum EUR 75,000 asset investment.

Is Madeira a tax haven?

No. It is an integral part of Portugal and the EU, with a state-aid-approved regional regime, full CRS participation and public ownership records.

Jurisdiction · Europe

Madeira (Portugal)

EU-approved 5% regime for shipping, trading and international services companies.

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Overview

The Madeira International Business Centre is a state-aid-approved regime giving qualifying companies a 5% corporate tax rate on foreign-source income until 2028, inside the European Union and with full access to EU directives and Portugal's treaty network. The MAR shipping register sits alongside it, giving EU-flag credibility with competitive crewing rules.

The regime is conditional, not automatic. Companies must create jobs in Madeira and make a minimum investment, and the benefit is capped by reference to headcount. It rewards real operations and punishes shell structures.

Typical use-cases

Where Madeira (Portugal) fits

Shipping registration
International services
EU trading

Banking

Banking landscape

Portuguese banks (Millennium BCP, Novo Banco, Banco Santander Totta) and Madeira branches serve IBC companies. Onboarding requires evidence of the Madeira licence, local employment and a business plan. EU payment institutions are used as a bridge during onboarding.

Tax

Tax & reporting

5% corporate tax on income from non-Portuguese sources for licensed IBC entities, versus 20% mainland Portuguese rate. Participation exemption on dividends and capital gains. No withholding tax on dividends paid to non-resident shareholders in most cases. Benefits are capped by employment and investment thresholds.

Substance

Substance & register visibility

Access to the 5% rate requires creating one to five jobs in Madeira within the first six months and, for smaller headcounts, a minimum EUR 75,000 investment in tangible or intangible assets. Ownership is publicly filed as in mainland Portugal. Substance here is enforced through the licence conditions rather than after the fact.

Decision

When to pick this jurisdiction

Pick Madeira when you need an EU entity with a genuinely low rate and can support real local employment — international trading, shipping and management services are the natural fits.

The director's view

Written up as a comparative shortlist.

Every Madeira (Portugal) recommendation is delivered as a comparative memorandum — substance defensibility, banking access, treaty coverage, register visibility, cost to maintain and reputational risk — so the client can see the trade-offs before committing.

Next step

Considering Madeira (Portugal)? Get a written comparison first.

Answer six questions and a director will come back with a shortlist, indicative costs and banking route.

Scope a structure here Compare jurisdictions

Frequently asked

Questions we hear on every Madeira (Portugal) intake.

How long does the 5% regime last?: The current regime runs to the end of 2028 for licensed companies, with historical precedent for renewal subject to European Commission state-aid approval.
How many employees do I need?: At least one full-time equivalent in Madeira, with the tax benefit capped by headcount. Companies with one to two employees also need a minimum EUR 75,000 asset investment.
Is Madeira a tax haven?: No. It is an integral part of Portugal and the EU, with a state-aid-approved regional regime, full CRS participation and public ownership records.

Relevant services