Key factors - GSMATIKALDA
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- Because Madeira is part of the European Union is an ideal entry point to the EU market due to of the Madeira International Business Centre (IBC)
- The IBC is a fully authorised and approved by the EU Commission as an international business centre
- The IBC is regulated and supervised by the Portuguese tax authorities along with the Bank of Portugal and other regulatory entities
- The Service Sector, the Industrial Sector and the Shipping Sector are three of the major areas in which the IBC operates
- The IBC companies are eligible to benefit from a big advantage regarding the tax regimes within the EU, with a 5% corporate income tax guaranteed until 2027
- The dividends paid to non Portuguese residents shareholders (corporate or individuals) are exempt of withholding tax, provided that they are not resident in a black listed jurisdiction
- As long as the shareholders are non-resident in Portugal, there is no withholding tax applied on interest and in other forms of payment for shareholders' loans, capital allowances or advances made by the shareholders to the company
- Royalties, services fees or interest paid to third parties are also exempt of withholding tax
- Portuguese Worldwide participation exemption regime is fully applicable to dividends, reserves, capital gains and losses
- Full application of EU Directives, such as the Parent/Subsidiary Directive and Interest/Royalties Directive
- Possibility to apply all DTTs signed with Portugal
- when compared to other EU business centres, the IBC has lower operation costs
- Multilingual work force highly qualified
- Providing a 50% exemption from corporate tax for companies exploiting patents, industrial designs and models protected by IP rights and registered after 01.01.2014, results in the possibility to apply the Patent Box Regime